Nassau OTB to issue $3M in bonds to cover shortfall; says snow impacted season
Nassau Off-Track Betting Corp. plans on issuing about $3 million in bonds in March to cover some unexpected expenses and revenue shortfalls created by the snowy winter, OTB President Joe Cairo told Newsday in a recent interview.“Our handle has been badly hit by the snow,” Cairo said, referring to the amount of bets handled at OTB outlets. He said OTB has lost 11 business days due to storms this season.
Combined with rising pension costs, OTB is facing about a $3.1 million, short-term shortfall, he said, adding that the board of directors has authorized the issuance of a “revenue anticipation note” to cover the difference. Cairo met with state legislators at the Capitol last week, but doesn’t need state approval to issue bonds, he said.
Cairo said the bonds are slated to be repaid by the end of the year and the short-term fix isn’t “tied to VLTs,” a reference to video lottery terminals, also known as video slots. The state last year gave Nassau and Suffolk counties permission to open VLT parlors with up to 1,000 machines apiece. Both counties are still working on locations; last month, Nassau ruled out the Race Palace in Plainview as a site.
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