S01282 Summary:

BILL NOS01282A
SAME ASNo Same As
SPONSORAVELLA
COSPNSRADDABBO, HOYLMAN, MONTGOMERY, SANDERS
MLTSPNSR
Amd Art 1 §9, Constn
Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges at betting facilities located at thoroughbred and harness racetracks operating in this state, in simulcast theaters operated by off-track betting corporations and in any constitutionally authorized casino facility; provides that the proceeds of such gambling be applied exclusively to or in aid or support of education.
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S01282 Actions:

BILL NOS01282A
01/09/2017REFERRED TO JUDICIARY
01/13/2017TO ATTORNEY-GENERAL FOR OPINION
02/10/2017OPINION REFERRED TO JUDICIARY
01/03/2018REFERRED TO JUDICIARY
01/12/2018TO ATTORNEY-GENERAL FOR OPINION
02/15/2018OPINION REFERRED TO JUDICIARY
06/14/2018AMEND AND RECOMMIT TO JUDICIARY
06/14/2018PRINT NUMBER 1282A
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S01282 Committee Votes:


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S01282 Floor Votes:

There are no votes for this bill in this legislative session.
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S01282 Memo:

Memo not available
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Photo
The OTB office at Seventh Avenue and 38th Street will remain open until Monday to allow customers to cash winning tickets and close accounts. CreditEarl Wilson/The New York Times 
After more threats of extinction than anyone could remember, the New York City Off-Track Betting Corporation unexpectedly made good on a threat of its own and closed the doors to its parlors on Tuesday night.
After the State Senate declined to pass an Assembly-approved bill designed to save the long-failing horse betting operation, Gov. David A. Paterson’s handpicked leaders of the corporation carried out their shutdown.
About 50 parlors around the city were shuttered. Some 1,000 employees lost their jobs. And a revenue stream that had funneled tens of millions of dollars a year to breeders, track owners and related businesses dried up.
Another piece of gritty old New York had gone the way of the Automat and the Times Square peep show.
Many had seen the latest threat as a bargaining chip to get lawmakers to act. Former Mayor Rudolph W. Giuliani and Mayor Michael R. Bloomberg had both threatened to close OTB before the city turned over the operation to the state in 2008. And the threat of closing has been repeatedly invoked since the corporation filed for bankruptcy last year.
Still, locking the doors came as such a shock that no one seemed certain of what would happen next. Some insiders still held out hope for a reversal, though the chances that the Legislature would take the required action dwindled by the hour.
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“I guess it’s never all over, but it’s pretty close to it,” said Steven Newman, an OTB board member. “It’s a sad day.”
Senate Republicans, who had offered a new bill this week that would give the other five regional OTBs the same savings on commissions to tracks that the city OTB would receive under the Assembly bill, said they still wanted to strike a bargain. But there were no signs of movement.
OTB’s total bets, known as the handle, fell to just below $1 billion a year in recent years as other legal gambling options became increasingly available and as interest in racing waned. What was left from the handle — after paying back 75 percent to winning bettors — was still a major source of revenue, especially for upstate horse farms.
“New York City OTB represents about 45 percent or so of the handle in the state,” said John D. Sabini, chairman of the State Racing and Wagering Board. “In an industry that’s having a tough time anyway in a tough economy, that’s a huge, huge hit.”
Attendance at Aqueduct racetrack was up about 25 percent on Wednesday, to 2,651, compared to a Wednesday in early December 2009, according to the New York Racing Association. But total betting — including off-track wagers — on Aqueduct races was about the same as that day a year ago.
The wagering board, meanwhile, approved emergency measures intended to dissuade New York City horseplayers from seeking out-of-state wagering options on New York races. The changes will allow some track owners and regional OTBs to increase incentives for bettors and process account applications over the Internet, instead of requiring applicants to file in person.
The city’s OTB operation was the first of its kind when it started in 1971. It carried the promise of taking the spoils of horse betting away from neighborhood bookmakers and channeling the profits to city services and the racing industry.
But problems quickly emerged. OTB became a patronage ground and infamous for loose spending. It was burdened by a requirement to pay the government’s and racing industry’s shares of the handle out of its gross receipts rather than with what was left after covering its expenses.
The city’s operation was a trailblazer, but never a model to other states, “because of what they perceived to be problems with New York City OTB,” said Bennett Liebman, executive director of the Government Law Center at Albany Law School and a Paterson appointee to the New York Racing Association.
Other states eventually created systems in which the track owners or other businesses controlled off-track betting.
Some privatization of OTB remains possible. Track owners have long coveted OTB’s Internet and telephone betting system. But as bettors clear out their accounts and days pass, that operation will also lose value.
“If they stay closed for one or two or three days, forget it, there’s nothing left. It’s a fragile asset to begin with,” said Marc E. Richards, a lawyer with the firm of Blank Rome who is representing OTB’s creditors in the bankruptcy case.
Closing costs have been estimated at $19 million, and pension and health benefits for retirees could climb above $600 million. Track owners seem less likely than ever to collect the $67 million they are owed, and the state would probably lose the $11 million it has coming.
OTB said it would keep three locations open through Monday to allow bettors to cash winnings and close out their accounts.
At one of those offices, at Seventh Avenue and 38th Street in Manhattan, about 20 men lined up when the first teller window opened at noon. Some of them shook their heads in disgust or shock. The television screens and betting machines were turned off.
“It’s terrible,” said John Grassley, 77, a retired postal worker who said he had been an OTB bettor since it began. “I thought they would solve it at the last minute. They ought to privatize it, or turn it over to the Gambinos. Government can’t run anything.”





S01282 LFIN:

NO LFIN
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S01282 Chamber Video/Transcript:

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