from the SOA of New York

Editor’s Note: Standardbred Owners Association of New York President Joseph Farlado, in a letter to members of the New York State Legislature, said that a short term government bailout of the New York City OTB would do long term damage to the New York State harness racing industry. Below is a copy of Faraldo’s letter.

As the picture has become clearer in recent days that a short term government bailout of New York City OTB is being considered by the Legislature and the Governor’s office, the SOA of NY and New York’s harness racing horsemen want to reiterate their strong opposition to any bailout that features the reduction and/or elimination of legislatively mandated payments to the racing industry and has no guarantee of payment for NYCOTB’s past debts.

Such a short term bailout would do nothing to reform the broken and dysfunctional NYCOTB structure and would, therefore, end up doing long term damage to a racing industry that employs more than 40,000 New Yorkers. Quite frankly, the long term negative impacts of many of the bailout proposals now on the table will likely be greater than the damage that would occur were NYCOTB simply be allowed to “die.”

In regard to specific bailout proposals now being considered in Albany, the SOA believes:

1. The reduction and/or elimination of payments to the industry will have serious negative economic impacts across several key NY industries. New York’s harness horsemen remain opposed to any reduction or elimination of legislatively mandated dark day and maintenance of effort payments from OTBs to the racing industry, which, as you know, are required because of NYCOTB’s own bad business decisions.

2. The proposed reduction of in-state and out-of-state commissions to the harness industry — which we understand are being considered as high as 25 percent — will significantly hurt a statewide racing enterprise that is just now getting back on its feet.

Finally, absolutely no bailout for NYCTOB should occur unless and until all past obligations are paid.

Not only will the above mentioned cuts devastate the industry, but we are aware of no concurrent requirement that NYCOTB pay their significant outstanding debts. Such a bailout would let NYCOTB “off the hook” completely for their own past business failures, to the complete detriment of racing, and put no long term structural reforms in place.

Once again, we urge New York State legislators not to place the burden for curing NYCOTB’s ills squarely on the backs of New York horsemen, breeders and farmers who are just now experiencing a long-anticipated industry renaissance.

Should you have any questions, please contact Joe Faraldo at 718-544-6800 or our lobbyist, Joni Yoswein, at 212-233-5700. Thank you for your consideration.