I don’t generally post full press releases, but in the absence (yet) of a link to this release, here’s NYRA’s statement on the OTB situation, which seems worthy of distribution, given its forcefulness.
OZONE PARK, N.Y. – The New York Racing Association, Inc. (NYRA) announced today that the provisions being sought by the regional off-track betting corporations (Regional OTBs) as part of the legislation to permit New York City OTB (NYC OTB) to emerge from bankruptcy would force NYRA into bankruptcy once again.
The legislation being sought by the Regional OTBs would reduce NYRA’s revenues from the regional OTBs in excess of $11 million. When combined with the revenue reductions provided to NYCTOB pursuant to the re-organization plan, NYRA’s revenues would be reduced by more than $20 million.
“NYRA cannot sustain a revenue reduction of $20 million and continue to operate the three racetracks” said NYRA’s President and CEO Charles Hayward. “The consequence of the legislation being advocated by the Regional OTBs is that NYRA would be forced to close.”
NYRA, a member of the Committee of Unsecured Creditors and the largest creditor for NYC OTB, has supported legislation passed by the Assembly that would give NYC OTB some short-term relief in the amounts that NYC OTB is required to pay the racetracks in exchange for NYC OTB deeding its account wagering business to the tracks, which in essence would give the racetracks an opportunity to re-coup the amounts being forfeited to NYC OTB as part of its reorganization in bankruptcy.
Although the short-term concessions made by the racetracks in order to allow NYC OTB to reorganize will be painful to each racetracks’ bottom line, NYRA felt that the pain could be justified because NYC OTB is the single largest distributor of NYRA’s racing product and the largest provider of handle on NYRA races. Moreover, under the legislation NYC OTB would be required to implement a plan of reorganization that would cut its overhead and align its operating costs with its revenues, resulting in a leaner, more efficient, and hopefully profitable OTB corporation.
The provisions being sought by the Regional OTBs would compound the pain on the racing industry by allowing the Regional OTBs to reap all the benefits of the concessions the racetracks have made to NYC OTB without similarly agreeing to transfer their account wagering businesses to the racetracks or take any of the steps being required of NYC OTB to make their business operations viable.
“No Regional OTB can survive long without the NYRA product,” said Hayward. “The net result of the legislation being sought by the Regional OTBs would be the eventual closure of their own corporations, and the elimination of thoroughbred racing in New York State.”
Brooklyn Backstretch 
Just to put the numbers in perspective; $20 million a year would mean about $160,000 per racing day, split between NYRA and purses. That would be a $10,000 per race cut in purses, and an impossible $80,000 per day cut in NYRA operating income.
We should have all just voted no for State Senate. An empty Senate chamber would be far more productive than these clowns.
good math mr. zorn. this all equates to low purses.
add the lost jobs.
lower stud fees(if you can find a mare who will breed in n.y.)
devaluation of the broodmare.
etc. etc.
“by the people, for the people”????????????
also, thanx obama for setting a great example by caving in.
The vote has just been taken in Albany and the Senate bill has failed. My State Senator Eric Adams said, “A no vote on this bill lights the wick to a stick of dynamite that will blow up our racing industry”. One of his Senate colleagues Sen. Kevin Parker was not at the Capitol because he was hearing a jury convict him of misdemeanor criminal mischief charges in Brooklyn. Steve Zorn is quite correct when he stated an empty chamber would do more good than this group did who voted today.
I don’t feel good about any of this news. Nothing is positive about this and now the regional OTBs could be the next to go. In the Short term this is going to be a bad blow to NY racing, but hopefully in the long run this was the right thing to do.
I will miss NYC OTB in a funny way as this is yet another thing that will disappear from the way NYC has been. Like the old Times Square there is something I liked about its gritty side. When I was at OTB last Fri withdrawing what money I had in my phone acct I looked around and saw people who fall between the cracks. I dont know where they come from or where they go, but they are part of the fibers that make NYC the great and special place it is. Certainly they are no poster children for the City, but every bit a part of it as I am. So in a funny way I will miss the parlors and wish all their patrons Good Luck. I hope they can catch the NYRA bus to AQU!