Bloomberg Considers Closing Off Track Betting Parlors in NYC
Mayor Bloomberg, facing decisions in the midst of a financial crisis in the New York City Off-Track Betting Corp., must decide to continue funding the OTB at the expense of other more important services such as education, health care, infrastructure improvements, and public safety.
Bloomberg said on Thursday, "I have always had reservations about city government being involved in gambling, but it is entirely wrong for the city to lose taxpayer money funding such a questionable endeavor."
Due to mandates from the state legislature, the OTB Corp. have been forced to make significant, increasing distributions to the racing industry. That amount is based on gross revenues and not net operating profits. This is causing the effort to be unproductive.
Numbers released by the OTB indicate that on revenues of over $1 billion annually, the annual net profit of $125 million. OTB paid the racing industry approximately $98 million last year, with $54 million of that going to the New York Racing Association.
There are about 1,500 employees that will be affected by the closure of OTB, either by granting severance packages to some and migrating others to other city jobs.
Bloomberg is encouraging State officials to consider the future of the OTB with other racing issues that are being discussed in the State.
"Right now in Albany, the future of racing in this state is being decided, and the future of NYC OTB should be a part of that conversation. The OTB chairman and president agree with me that unless something changes, these circumstances point to only one course of action - the cessation of NYC OTB's wagering operations." He said.
NYC OTB board chairman, David Cornstein, agrees with Mayor Bloomberg and added that "NYC OTB cannot expect the city, particularly in tenuous economic times, to subsidize the operations of the corporation." adding that he would review the plan and discuss it with other board members to determine the appropriate course of action.
