NEWS
Catskill OTB president wants to ban out-of-state ADWs in New York
Posted: Monday, December 21, 2009 1:23 PM
by Paul Post
The state must take steps to correct inequities in New York’s off-track betting system, Catskill Regional Off-Track Betting Corp. President Donald Groth said.
Groth said out-of-state account wagering firms such as YouBet.com should not be allowed to accept bets from New York residents. New York’s six regional off-track betting firms have lost more than $300-million since early 2008 when the New York State Racing and Wagering Board approved the practice, which Groth said is in violation of state law.
Such ADWs offer New York residents rebates that OTB cannot afford and at the same time those ADWs are not subject to the same statutory fees as OTB, he said.
“The playing field is not level,” Groth said. “One way to make it level is to run these guys out of town or force them to make the statutory payments we pay.”
Groth is trying to tackle the problem on two fronts. First, he solicited help from state Attorney General Andrew Cuomo, asking him to enforce laws already on the books. “Off-track betting on pari-mutuel horse races is specifically authorized to occur here exclusively through off-track pari-mutuel betting systems established by V, V-a and VI of the Racing, Pari-Mutuel Wagering and Breeding [Racing Law],” he said.
Separately, Groth said he is working with Senate Racing, Wagering and Gaming Committee Chairman Eric Adams (D-Brooklyn) to correct the situation legislatively. State lawmakers will reconvene in Albany, the state capital, in January to start conducting business for 2010. The matter could be taken up then, Groth said.
Compounding problems, Groth said states such as New Jersey have made it illegal for their residents to place bets with out-of-state firms. So New York off-track betting firms cannot handle wagers from New Jersey, but New York residents may bet out of state, he said.
A state task force spent 2009 studying New York’s off-track betting system and is expected to submit recommendations to Governor David Paterson and the legislature in the near future. New York City Off-Track Betting is pursuing Chapter 9 bankruptcy and says it will have to shut down in early 2010 if the state fails to approve a new business model.
Paul Post is a New York-based correspondent for Thoroughbred Times
