Paterson Ready to Bail Out OTB

Gov. Paterson is planning to offer legislation today to bail out the Off Track Betting Corp. for one year. The Post reports the proposal would keep the OTB from having to make some payments to tracks, while requiring them to cut management and create new revenue sources. Paterson said, "It will address the problems for some period of time, but the feasibility of the program working, we have not found the solution. Basically what it does is it shares the burden."

However, a sneaky secret deal is also in the works within the OTB. The OTB and its major union, District Council 37, reportedly made a deal promising 20% pay hikes and severance packages if the union conceded to job reductions over time. The Daily News reports that this deal could ruin the state bailout plan by promising too much to workers. Assembly Racing and Wagering Committee Chairman Gary Pretlow said, "We can't afford it." If the state can't reach a deal today, the OTB will be forced to close by Sunday.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jaya Saxena in News on April 14, 2010 2:50 PM

Comments [rss]

mo

they have money for a gambling joint but not to save st vincent's hospital .nice tells you where albanys priorities are.

Mordicai

Kill the stupid OTB. This & the lotto are clearly wicked governance taking advantage of the populace, but at least the lotto MAKES MONEY. How do you justify this garbage if it isn't making money? Criminal as hell.

Mark

NOOO! Stop saving the OTB...let it die already!

spiritross

I already paid them yesterday - damn #6 horses ruined my exactas all day.

Gothampc

Bail out OTB with whose money? Taxpayers have to pay for OTB?

ANGRYGOD11

Be careful for what you ask for: If OTB closed all of it's doors today, taxpayers are still on the hook for pensions and many other expenses.

JenChungsBaby

So what? Taxpayers are on the hook for that no matter what. They shouldn't also be on the hook for keeping the place in business.

And if OTB closes, those pensions will accrue less and taxpayers will be on the hook for less.

JenChungsBaby

The whole point Governor is that OTB isn't supposed to be a burden. It's supposed to make money hand over fist. If it's a burden then it should be killed. Otherwise it's just a welfare-to-work program for 1,300 losers who couldn't get jobs elsewhere.