================================================== Judge upholds OTB fees rule -------------------------------------------------- Daily Gazette, The (Schenectady, NY)-July 25, 2011 Author: MICHAEL LAMENDOLA ; Gazette Reporter A state Supreme Court judge has upheld a state Racing and Waging Board rule that requires regional off-track betting organizations to pay "maintenance of effort" fees to harness tracks. The Capital District Regional Off-Track Corporation, for example, has to pay $1.5 million to Saratoga Harness Racing under the rule. Acting state Supreme Court Judge Guy P. Tomlinson ruled on the Article 78 hearing in Schenectady County Court in May. Tomlinson's decision upholds "hold harmless" payments the OTBs are required to make under state statute to harness tracks. The payments are to compensate the harness tracks for simulcasting nighttime out-of-state harness races. The payments were established to protect harness tracks from loss of revenues because the OTBs offered a betting product that competed with them. The state Racing and Wagering board approved the maintenance of efforts payments in 2009. The OTBs filed suit shortly thereafter, claiming the racing and wagering board exceeded its authority and violated the state's constitution. Also, since the state passed legislation establishing the maintenance of effort payments in 2003, several tracks have introduced video lottery terminals, which have changed the focus of the legislation, according to OTBs, requiring that they no longer have to make the payments. In his 23-page ruling Tomlinson said the racing and wagering board did not exceed its authority in imposing the maintenance of effort rule and that it actions were not arbitrary, capricious and contrary to law. Tomlinson ordered the Capital Region OTB to pay Saratoga Harness Racing $203,938 -- the balance owed it on $1.5 million in principal authorized under the maintenance of effort rule. The Capital Region OTB's maintenance of effort payment is the largest owed by the regional OTBs to the various harness tracks in New York state. Nassau OTB, for example, owes $3,021 to Tioga Downs and $182,958 to Monticello Raceway. The payments are on hold while the OTBs appeal Tomlinson's decision. No one from the Capital Region OTB or state Racing and Wagering would comment on record while the case remains in appeal. Reach Gazette reporter Michael Lamendola at 395-3114 or lamend@dailygazette.com. Edition: Schenectady/Albany; FinalSection: B: LocalPage: B2Column: SCHENECTADY Record Number: 138B4B7390BF9CE8Copyright http://docs.newsbank.com/s/InfoWeb/aggdocs/NewsBank/138B536326A4D280/0B1AB21E77E24233ADAEA9C4BE948A6B?p_multi=SDGB2&s_lang=en-US
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