State May Actually Help Struggling OTB

After laying off 1,300 workers and wracking gamblers' nerves, the Off-Track Betting Corp. may actually get the state bailout they were hoping for. The OTB has said they would have to shut down by Sunday without a lifeline from the State Assembly, and the Assembly is working on a plan to help them out. According to the Daily News, state lawmakers are developing a plan that would thin out OTB management and cut the OTB's payments to the state's racing industry by about 10%. Assemblyman Gary Pretlow said, "We have to do something before the middle of next week, otherwise OTB goes out of business totally."

The plan would be a temporary bailout for the year while OTB officials come up with a more permanent solution to their financial troubles. That solution may call for betting kiosks in restaurants and bars, which the Assembly's plan does not include. However, sweeping reforms will be needed. "What's there now I don't trust to undertake the reforms that are needed," said Pretlow. "I think we need to do a housecleaning from the top to the bottom there." Despite all the work, the new deal may not be in place before the layoffs go into effect on Sunday. OTB Chairman Sandy Frucher said, "There's been some constructive dialogue, and I'm hopeful we'll be able to work something out."

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By Jaya Saxena in News on April 6, 2010 5:59 PM

Comments [rss]

ProcedureTurn

As a friend once commented, "there are no smiling faces inside the OTB."

Let this place go defunct. Gambling is a cancer on society.

handsomedevil

I've already fired off an email (yeah, I know, a little weak) to my assemblyman, and you should too.

But, thinking about this, how accurate can it be to say that OTB loses money? The state must be getting a cut, right? Or it feeds the racing system from which the state gets a cut? Why the hell else would the goddamn thing exist?

So, my theory is that, after the state skims a certain % off each transaction, there is not enough left to pay for operations, salaries, etc., and that is what is meant by "loses money."

Either that or it really is a boondoggle and the state is as incompetent as you think it is.

mtauser

OTB should be shut down totally. I hope they shut down the OTB by here and replace it with something else since it is excellent retail space.

Everytime you pass by there, you see homeless, smokers, and vagrants.

OTB and gambling promotes crime. Areas with casinos have much higher than average crime rates.

Shut down OTB and shut it down now. Save a life and save people from getting into debt in the first place.

Shouldn't exist. No reason for it to be around.

There is an OTB in Forest Hills, NY right by me and I hope it is shut down for good.

Back in 2007 I felt that OTB would shut down for good and somehow it finally got extended and now all the pink slips went out.

Hopefully this means OTB is finally gone for good.

soxinthecity

Why not move to Kansas if you hate vice? NYC should legalize sports gambling (in addition to pot and prostitution) and cut into the profits of the mafia.

The only issue is how corrupt OTB is if it is losing money being a bookie. How is that possible?

Guest

no. fucking. way.

how shady can the state be?

whitecastlerock

Trim the fat in Albany...

Mordicai

This is just insanely outrageous. What. The. Hell.

pinball29

This is beyond outrageous. Just when we think that the corrupt Albany scumbags cant shock us anymore, they decide to spend money on keeping a money-losing gambling operation going. This while watching the closing of St Vincents hospital, the cutting back on education, transit, health services. Stopping all construction projects. Raising taxes on everything. The only house that needs to be cleaned is the bribe-taking, corrupt and inept state Legislature. For some reason, that house is NEVER cleaned!!

cxb

Um, my mayoral platform had a GREAT NEW LOTTERY IDEA:

"RETIRE FOR LIFE":

every week, 100 people's lottery numbers would be chosen, and they get $40,000 a year for the rest of their life so they can either quit their jobs (freeing up many occupations and lowering unemployment) or live MODESTLY (since we all know that giving someone $50 million in a lump sum NEVER WORKS CORRECTLY and ruins most lives).

It also spreads MORE MONEY TO MORE PEOPLE, b/c no human needs $20 million in a lump sum.

And 100 guaranteed winners a week! (That's the first lottery I'd ever play!)

Gothamist didn't think that was as interesting to discuss as which sports heroes Bloombag's campaign staff liked the most!

mctaco

Dude, get a horse, move to the woods, and stop bothering everyone.

FelixtheCat & Christine Quinn'

Stupid move to bail them out. I wonder which politicians were bride to bail them out with our money

handsomedevil

That's ridiculous. With all the important sectors of the state taking big cuts, there is absolutely no reason to prop up this useless institution that somehow managed to lose money on gambling.