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New York state lawmakers have agreed to legalize public casinos and will amend the state constitution to allow seven new casinos to operate, lawmakers said on Wednesday.

The fate of President Barack Obama's healthcare overhaul will be debated at the Supreme Court this month, reviving controversy over his signature domestic policy achievement in a year when Americans vote on whether to give him a second term.

New York City will be paid more than $500 million by computer contractor SAIC in a fraud case related to the company's work for the city, officials said on Wednesday.