NEWS
Resolving OTB mess crucial to NYRA's turnaround
Posted: Monday, June 28, 2010 5:55 PM
by Paul Post
Financial pressure and the bankruptcy court might force Gov. David Paterson’s lame-duck administration to deal with New York City Off-Track Betting Corp. before year’s end, New York Racing Association officials said Monday.
NYRA recently got a $25-million state loan, and groups seeking Aqueduct’s gaming contract must submit proposals on Tuesday, paving the way for a huge new influx of cash.
New York City OTB, however, remains the biggest unresolved piece to solving NYRA’s financial puzzle. The company is shortchanging NYRA about $2-million per month and now owes it more than $20-million.
“That’s something we’ve got to fix,” NYRA President Charles Hayward said on Monday. “It doesn’t take long for $25-million to go if you’re cutting away $2-million per month.”
Paterson’s recent appointment of Larry Schwartz to replace Meyer Frucher as New York City OTB chairman is a sign that the governor is serious about tackling the company’s fiscal problems, NYRA Chairman C. Steven Duncker said.
“[Schwartz has] studied and understands the issues,” Duncker said. “Something has to happen in the next six months. I’d be disappointed if it doesn’t.”
Last week, the New York State Racing and Wagering Board gave NYRA a boost by allowing uncoupled entries in races with purses less than $1-million. Previously, bettors could not place separate wagers on two horses entered by the same trainer.
Giving people more horses on which to bet upon will increase exotic wagering opportunities, generate up to $7-million worth of net revenue and contribute $5-million to purses, Hayward said. NYRA has been trying to get this statute changed since May 2006.
NYRA received more than 3,000 applications for its 1,800 stalls at Saratoga Race Course. The trend of fewer starts per horse, fewer trainers, and increased competition from Monmouth Park in New Jersey, however, could reduce field sizes and Saratoga’s overall racing quality.
Paul Post is a New York-based Thoroughbred Times correspondent
