OTB Will Close Unless Albany Comes to Rescue

Photo via laser burner's flickr

The Off-Track Betting board voted to close all 66 of its locations on April 11th, unless funding from Albany comes in. Their closing would put 1,300 OTB employees out of work, and Leonard Allen, president of Local 2021, tells the Daily News, "[OTB workers] feel like they're on death row, waiting for an execution."

The OTB filed bankruptcy in December, citing debts of nearly $100 million. Over $15 million of that is owed to the New York Racing Association, which opposed the filing. However, a judge ruled yesterday that OTB can continue with the filing, saying they filed in "good faith," according to BusinessWeek. Now legislators are looking over a proposal that would reduce the share of betting profits owed to the racing industry.

On top of the payment reduction, OTB Chairman Meyer (Sandy) Frucher wants to borrow $250 million to put betting kiosks in bars to up revenue. But even though he swears they're good for the money, Albany doesn't seem to excited about the plan. Assembly Racing and Wagering Committee Chairman Gary Pretlow (D-Westchester) said,"We're trying to get them to submit a real organization plan. We are not approving the plan that Mr. Frucher has submitted. I don't think it's workable."

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By Jaya Saxena in News on March 23, 2010 12:33 PM

Comments [rss]

Dom1951

The public only has 1/2 the story the realty is OTB runs at a very good profit. The problem is too many people have their hand out. So if OTB AFTER operating expenses has $50 million dollars to dole out it is required to pay $60 million to various entities so rather then these entities saying ok will will take a little less (so we take 50 rather then 60) they rather get 0 ZERO because of GREED. In fairnes many things may be done to improve profitability and they have done some and because of patronage you get folks work there that don't know a horses butt from there head. All that said in concept OTB has contributed tons of money to NYC and many NY state communities and can continue to do so if everybody took a little less and bring in professional managers.

Pachinko

GOOD RIDDANCE!

dadoc

How the heck do you run a state-supported bookie joint and lose the business? Even a RICO racket knows how to run a business, keeping the skim right to keep the run floating. Turn it over to the Howard Beach crew, they'll save it and cover the deficit. But Patterson, Espada, Monserrate and others may wind up someplace in Jamaica Bay.

rfid4dna

This is the opposite of concerning.

bluerain

It is well known that OTB is entirely staffed by patronage jobs; if you contrbute to the right party, you will get a job.

The time for patronage mills has passed. The state is in deep, deep trouble. Every job in NY State government better be a necessary one. No longer should a government job be a job for life.

Bloomberg was right - just shut all OTB down.

And, btw, supposedly OTB doesn't run at a profit. Who can't run a casino at a profit? Seriously! They have a legal monopoly and they can't cut it.

GregK718

Most people that go to the OTB by my house are drunk/high white trash scum. I CANT wait for that damn eyesore to close up. My wife always walks across the street to avoid walking by this place and all the lowlifes that hang out outside of it.

Goodbye! Good riddance!

Joan Angelson

It's OK to bail out Wall Street but not OTB? These are great places to meet friends on Saturdays and make a little money. Why is it always the small guys that get it in the end?

gattopardo

I was planning on going to the OTB to wager on the Kentucky Derby on May 1st. Now what am I going to do?

longacre

Go to Belmont or Aqueduct.

Fatty Boombalatty

Shutting 'em down would be the smart thing to do.

So of course Albany is going to keep these eyesores open.

Mookie Wilson

Only New York could create a gambling ring that needs tax money to stay afloat.

Boogie Down

Mmm hmm.

Mordicai

Do they feel like they are on death row because they know they are criminals who have been leaching the life out of communities? Like-- is that why?

yamon

Are these really necessary in NYC? While doing my semi-daily bagel run near work in Brooklyn I pass by an OTB, and the only people going in or standing outside are people who I'm sure could put their money to better use. Not judging, but if these facilities are running in the red as much as the people who are using them it seems an intelligent choice to shut them down.