DiNapoli: New York's OTBs are headed toward insolvency
ALBANY — Gambling at the state's off-track betting parlors continues to fall, an audit by Comptroller Tom DiNapoli concluded, and the decline is threatening insolvency that would have ripple effects on local governments and the New York Racing Association — both of which rely on payments from OTBs.
An audit by DiNapoli noted that the overall handle — the amount of money wagered — at New York's five remaining regional OTB authorities fell from $817 million in 2009 to $664.3 million in 2013. The decline reflects a nationwide decline in horse betting and a drop in racing viewership.
“The viability of OTBs is in financial jeopardy,” DiNapoli said in a statement. “Statutory payment requirements, a downturn in racing interest and major fee increases have each contributed to this plight. As competition for gambling dollars intensifies in New York, the state must reexamine the roles of OTBs. Some localities rely on this revenue to help balance their budgets and already feel the effects of this decline.”
The OTB authority covering New York City went bankrupt in 2010, after state legislators rejected a bailout package. The five remaining OTBs — Western, Capital District, Catskill, Nassau and Suffolk — have changed their operations to include advance deposit wagering, which lets people place bets online or by phone, and, in Western New York, to open a video slot parlor.
DiNapoli recommended Nassau and Suffolk counties open such slot parlors, and suggested the OTBs begin collectively negotiating with tracks to achieve better rates for the rights to broadcast signals of their races.
The OTBs coordinated their response to DiNapoli's audit and largely agreed with the comptroller's findings and recommendations — some of which require legislative action.
“The New York Regional OTBs distributed over $57 million to the racing industry during 2013. OTBs do not lose money, but in fact, are required to distribute in excess of revenues received. With the legislative proposals presented, New York OTB can continue to operate for the benefit of ALL participants of OTB revenues,” the Catskill OTB said in a statement.
Here is the audit: http://politi.co/1VdC2v0
Here is a report: http://politi.co/1KCwAfd
CORRECTION: The original version of this article misstated the amount of the handle in 2013. It was $664.3 million, according to DiNapoli's audit, not $64.3 million.
No comments:
Post a Comment