Suffolk Off-Track Betting furloughs most workers
A packed parking lot at Jake's 58 in Islandia on Friday, March 13, 2020. Credit: James Carbone
Suffolk Regional Off-Track Betting has furloughed most of its 300 employees, but the OTB's president and vice president still are collecting their salaries as the agency copes with the closure of betting parlors and Jake's 58 Casino Hotel in Islandia due to the coronavirus pandemic.
While the "vast majority" of employees are being furloughed, some essential employees, including Suffolk Regional Off-Track Betting Corp. President Phil Nolan and Vice President Anthony Pancella III, are collecting their salaries, agency spokesman Jon Schneider confirmed. Nolan is paid $205,400 annually, and Pancella makes $195,000 a year, Schneider said.
In a letter to employees, Nolan and Pancella said: "It had been our hope that we could afford to pay our entire workforce until such time as we were able to safely resume operations or access federal aid meant to retain workers."
They said the betting agency, which has been in bankruptcy since 2011, was not approved for the federal Paycheck Protection Program, which provides loans to small businesses.
When OTB reopens, employees can return to their current rate of pay and maintain their seniority, and accrued time, according to the letter.
Employees can also draw down unused paid time off before applying for unemployment insurance, Nolan and Pancella wrote.
"And without any revenue or prospect of reopening within the next 30 days, our financial position has deteriorated," Nolan and Pancella said in the April 16 letter announcing furloughs.
The Nassau and Suffolk OTBs are public benefit corporations that provide profits to the counties.
Last month, Nassau Regional Off-Track Betting asked its 132 employees to use accumulated sick and vacation time, work temporarily without pay, or retire.
Nassau OTB President Joseph Cairo and general counsel Arthur Walsh are drawing down unused sick and vacation time, Nassau OTB spokesman David Chauvin said.
Nassau OTB applied for a PPP loan.
Suffolk OTB employees were paid through April 23 or 25. Furloughed employees will have medical benefits until at least June 30, and don't have to contribute to their monthly premiums during the furlough period, Schneider said.
Ben Carenza, director of the Long Island Division for Teamsters Local 237, which represents OTB employees, backed OTB's plan. "Nobody's laid off, which is a good thing," he said.
Carenza said his union represents about 150 employees at Jake's 58 and about 75 employees in the horse racing parlors and phone rooms.
"It is hard but they understand they at least can get the unemployment," Carenza said. "At least they're not without any money."
Suffolk OTB has an annual payroll of $16.6 million and operates betting parlors, QWIKbetz sites and has online and telephone operations.
Delaware North, a large private casino operator based in Buffalo, runs Jake's 58 for OTB, which leases space from the company and receives a portion of casino profits.
The State Legislature established OTBs in the 1970s to pass horse betting profits on to local governments. OTBs in Suffolk and Nassau have a significant number of patronage employees. Nolan is a former Democratic Islip Town Supervisor, and Cairo serves as Nassau Republican chairman.
The State Legislature established OTBs in the 1970s to pass horse betting profits on to local governments. OTBs in Suffolk and Nassau have a significant number of patronage employees. Nolan is a former Democratic Islip Town Supervisor, and Cairo serves as Nassau Republican chairman.
Last month, OTB officials and gaming industry leaders urged the federal government to make clear that small gaming entities could receive aid from the PPP.
Businesses that draw more than one-third of their gross annual revenues from legal gambling activities are ineligible for other disaster loans offered by the U.S. Small Business Administration's disaster loans.
On April 28, the U.S. Treasury Department said "a business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues."
Scott Eidler covers Nassau County government and politics for Newsday. Scott has worked at Newsday since 2012 and previously covered municipal government and education.
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