from Harness Tracks of America

Tucson, AZ — Don’t bet that it won’t be revived next Monday, when the well-rested New York legislators return from their long weekend recess, but as of right now help for desperate New York City OTB is gone, with the old story of disparate interests trying to get a legislature to deal with all their requests and demands.

Assistance fell apart yesterday when labor unions objected to severance payment arrangements, tracks objected to a 15 percent cut in OTB proceeds, and the boys in Albany simply threw up their hands and went home.

NYC OTB, which was scheduled to shut down last Sunday, now is due to shut down this coming Sunday, but could delay that a day in the hope that some compromises might have been arranged in the down time in Albany between now and then.

Some legislators balked at the retirement benefits promised by NYC OTB, which they said aren’t realistic given the company’s financial problems; others with tracks in their districts said no to the 15 percent cuts; and the governor said he was “deeply saddened” that the legislature’s reluctance to accept his plan for OTB would lead to unemployment for NYC OTB’s 1,300 employees.

In an excellent summary of what the bailout plan actually consisted of, Rick Karlin of the Albany Times Union provided an outline of the major points.

They include:

• A 15 percent cut to tracks for a year, worth $1 million, and 75 percent cut to New York City and the five boroughs for a year, provided a positive cash flow is shown by NYC OTB within 60 days or that provision will be lost;
• Allowing NYC OTB, instead of the state, to keep unclaimed ticket money for a year;
• Allowing 1 year of Internet streaming of races for any OTB;
• No requirement to pay the tens of millions owed to tracks and others by NYC OTB;
• An $18 million loan to pay for early retirement incentives;
• Allowing joint ventures for OTBs, tracks;
• Eliminating the memorandum of understanding between unions and NYC OTB.