Paterson Grants OTB Bankruptcy to Help It Pony Up

OTB is really starting to resemble that schoolyard friend who keeps on losing a bet and immediately fires back, "Okay, how 'bout double or nothing?" In what he called an "unprecedented but necessary move," yesterday Governor Paterson issued an executive order authorizing Off-Track Betting to file for bankruptcy protection. Last year OTB was one of the forgotten beneficiaries in the Year of the Bailout, the money-bleeding agency rescued by the governor in a deal with the mayor. At its current pace, OTB would run out of money completely by next spring. Paterson said Tuesday's move was necessary to close failing parlors, and expand automated-betting systems to pay off the agency's mounting debts. The Times has an in-depth look as to just how much money the agency wastes by insisting on company cars for its city employees. One gray ponytailed OTB patron told the paper, “I tell you what my bookie in the Bronx don’t have this problem. He always has money. Nowhere else in the world does a bookie lose money.”

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By Billy Parker in News on September 2, 2009 6:25 PM

Comments [rss]

Mr Mel

If you ever looked inside an OTB parlor, you would realize, if a bomb went off in there, not one missing person report would be filed.

grizzzly

I know of at least one corner that will be vastly improved by the lack of a huge, horrid-smelling cloud of stale tobacco smoke should this whole thing go down.

MT

The state is doing everything it can to keep up from smoking and drinking sugary sodas and yet gambling on horse racing is so vital to our lives that the support beyond all reasonable measure? Can someone tell me exactly what the city and the state are getting out of this? I'm completely baffled.

Cautious Pessimist

They're getting tons of money. Not for us, the taxpayers, like it's supposed to be doing. I mean money for them. Money that goes into their pockets.

Fuck you citizen, we're the government. If you don't like it, tough shit.

JacqueMehoff

every governor had this OTB problem.

from the days of giuliani and on. just get rid of it.

NannyState

And in spite of all this, Paterson is still behind in his vig.

Qraymond

OTB is actually supposed to make the City and State money (when run properly):

http://www.gothamgazette.com/blogs/wonkster/2009/09/01/city-off-track-betting-heads-to-bankruptcy-court/

From the press release:

"In 1970, the Legislature authorized the off-track betting system in New York, which included the establishment of NYCOTB as a public benefit corporation. Since its establishment, NYCOTB has generated in excess of $4.5 billion for the support of State and local governments and the horse racing industry. NYCOTB handles almost half of the total amount of money wagered on horse racing annually in New York State."

longacre

"When it looked like they could get twenty-five years to life in prison just for skimming a casino, sick or no fuckin' sick you knew people were going to get clipped." —Nicky Santoro, Casino

Doctor Memory

Here's a freaky idea: close OTB. Like right now.

License private bookies if there's some huge constituency of pony freaks out there who will riot when it closes down, but if you can't make money running a sports book, get out of the damn business.

rcltrh

In the words of my southern grandfather, "you're shitting me?!" HITH do we come to bailing out a gambling firm? I lost $500 awhile back in Atlantic City. Where's my bailout money? Jesus f'n Christ.

Past Taliban

ANOTHER "too big to fail"?

ribaldry

Hilarious. Obviously their is corruption to the hilt. Let the public pay their debt as usual. You know Paterson made his his green.

sidenote

Paterson, you fool - without your beard you are powerless!

Mr Mel

Probably all the other OTBs make money. Only in this city does it have to declare bankruptcy to survive. The crooks that run the OTB appoint the other crooks that rob it blind.