and Theresa Butler is scouting out properties with uranium and oil and gas

that can be bought on the cheap.
Brought to you by the fine minds and that can't open when tracks are running and bettors are lined up at the door with cash in hand to bet.... These guys are just like the ones in New York City with the Swiss Bank acocunts who retired to Greece while everyone else went to hell.

You've got to be kidding? Sadly they are not and the steamroller is getting ready to pave over the ostriches

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Home > News > Finance > Suffolk OTB outlines reorganization plans

Suffolk OTB outlines reorganization plans

by Claude Solnik
Published: May 17, 2012
Tags: bankruptcy, Chapter 9, Internet wagering, Long Island, Quik Bet, reorganization, Suffolk OTB

The Suffolk Regional Off-Track Betting Corp. in its bankrtupcy filing lays out a reorganization plan that focuses on Internet and other remote betting ventures and downplays its full brick-and-mortar branches.
The Suffolk OTB Board authorized the filing of a Chapter 9 petition at its regular meeting on April 26 more than a year after it filed an earlier petition, that was rejected.
Suffolk OTB initially filed for bankruptcy on March 18, 2011, closing five branches and seeking to renegotiate contracts and leases. But U.S. Bankruptcy Court Chief Judge Carla Craig rejected the motion that December after Churchill Downs, a creditor, argued the OTB operator needed the authorization from the state.

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The New York Legislature in March amended the state’s racing laws, allowing Suffolk OTB to file for bankruptcy protection.
Saddled with expenses and mandates, Suffolk OTB took a $5.1 million net operating loss in 2011, down from $5.7 million in 2010, but up from $4.9 million in 2009. It also cut operating and administrative expenses from $23.39 million in 2010 to $20.57 million in 2011.
Suffolk OTB now operates six branches, 19 Qwik Bet or machine wagering locations, a teletheater, telephone wagering center, a headquarters and warehouse.
The organization, which employed 215 as of May 1, hopes to grow revenue and cut costs by relying more on Internet and pub and restaurant-based wagers, joint ventures with other OTBs and even installing cell towers on its real estate.
“This Chapter 9 case represents a unique opportunity for an environment where Suffolk OTB can execute the changes necessary to transform Suffolk OTB into a successful, cost-effective business operation and position it as a catalyst for revitalization of the entire New York horse-racing industry,” Suffolk OTB President Jeffrey A. Casale wrote in the filing.
Casale said Suffolk OTB favors shared services and joint ventures with other regional OTBs “as a means of reducing expenses and creating greater efficiencies of operations.”
He said Suffolk and Nassau OTB are the only two OTBs in the state with long-term joint ventures. Suffolk OTB handles telephone account wagering for both organizations and provides printing services for Nassau OTB.
“Suffolk and Nassau OTB management have met on several occasions to explore expansion of joint ventures and shared services, including Internet wagering platforms, purchasing and legal services,” Casale said. “While no agreements have been reached between the regions, discussions are continuing.”
Casale said Suffolk OTB hopes to expand its business by relying on a cheaper means of obtaining bets, mainly through Qwik Bet locations, Internet wagering and other remote-wagering mechanisms.
Suffolk OTB grew its Qwik Bet locations from four in 2006 to 19 last year with the handle, or amount bet, growing from $1 million to $9 million. Suffolk OTB’s Internet handle grew by 133 percent from 2010 to 2011 to $7 million.