Governor Spitzer, in a further shake-up of his inner circle, is handing over the reins of his political operation to a wealthy Westchester County investor who is part of a group vying for lucrative gambling contracts with the state.

Struggling to stanch a heavy loss of support among voters, including Democrats, after a rocky year in office, Mr. Spitzer is turning to one of his closest friends, William Mulrow, for relief.

Starting next year, Mr. Mulrow, a Yale-educated former Wall Street investment banker who failed twice to be elected state comptroller, will begin serving as an unpaid senior political adviser to the governor.

Mr. Mulrow is assuming a key role in Mr. Spitzer’s political operation as the governor is said to be mulling other major changes to his political team.

The New York Sun reported earlier this month that Mr. Spitzer’s wife, Silda Wall, and a senior administration adviser, Lloyd Constantine, have urged the governor to part ways with his chief of staff, Richard Baum, and his chief political operative, Ryan Toohey, to signal a clean break from the Troopergate controversy that has engulfed the administration for the last six months.

Mr. Toohey, who helped run the governor’s 2006 campaign, is the primary strategist behind the effort by Democrats to take over the Republican-controlled Senate.

Spitzer officials insist the governor has no immediate plans to sever ties with Messrs. Baum or Toohey and that Mr. Mulrow is an addition to the governor’s political team, rather than a replacement.

“In the course of an administration, you pick up advisers, and in some cases shed them,” a source close to the governor said.

Spitzer officials hailed Mr. Mulrow as a Democrat with deep pockets and contacts, particularly in the world of organized labor, who would provide the governor with “direction” and “vision.” One official said he would represent Mr. Spitzer at political events.

“He’s got an amazing Rolodex,” the official said. “He’s got people in every political operation in the state, incredibly well-respected, and he’s very close to Eliot.”

Mr. Mulrow, who is a managing director of a private equity firm and a director at Citigroup Global Markets, is also an investor in Excelsior Racing Associates, one of several private groups seeking state approval to operate racing and gambling terminals and develop real estate at New York’s premier thoroughbred racetracks, including Saratoga.

Lawmakers and the governor are negotiating a franchise arrangement that is expected to keep at least the racing portion of the business in the hands of the nonprofit New York Racing Association. Less certain is which entity will receive the rights to run other components, such as casinos or the simulcast business.

An administration official said Mr. Mulrow would not assume his duties as political adviser until the franchise competition was settled.
One of Mr. Mulrow’s casino business partners is Richard Fields, whose relationship with the governor came under scrutiny during the 2006 gubernatorial race, when Mr. Spitzer was accused of underpaying Mr. Fields for several rides in his private jet.

In recent years, Mr. Mulrow has emerged as a leading Democratic fund-raiser. In 2002, he sought to parlay his political contacts into electoral support, challenging Alan Hevesi in the 2002 Democratic primary for state comptroller.

Mr. Mulrow lost by a wide margin, but tried again this year as one of several contenders to fill a vacancy in the office left by Hevesi, who resigned after pleading guilty to defrauding the government.

This time he needed support from the Legislature, which was responsible for replacing Hevesi. Mr. Mulrow lobbied hard for the job.
On January 4, he sent an e-mail message to the governor’s chief of staff, Mr. Baum, boasting support from business groups and organized labor and seeking direction about how to proceed with his bid.

“I know this entire issue is delicate, and I am being as careful and respectful as I can be. But getting more difficult each day,” he wrote. “ES mentioned yesterday that he and I should talk. Can I do so with you today if possible?” ES was a reference to Mr. Spitzer.

Three weeks later, Mr. Mulrow was named as one of three finalists selected by a screening panel set up by the governor and lawmakers.

Lawmakers ended up rejecting the recommendations and voted to install a Long Island Democratic assemblyman, Thomas DiNapoli, as comptroller.