NEWS
New York OTB ordered to stop
showing out-of-state simulcasts
Posted: Tuesday, May 25, 2010 3:29 PM
by Paul Post
New York Thoroughbred breeders are applauding state action that prevents bankrupt New York City Off-Track Betting Corp. from showing simulcast signals from out-of-state tracks.
The New York State Racing and Wagering Board has ordered the entity to stop showing races from numerous venues, including Pimlico Race Course, Arlington Park, Calder Race Course, Churchill Downs, and Hollywood Park.
New York City OTB apparently was accepting signals from these tracks without board-approved contracts.
“The board wants to make sure OTB can meet its financial obligations,” spokesman Joseph Mahoney said. “We’re not approving these out-of-state signals for OTB while our review continues.”
At present, New York City OTB only is showing races from two in-state tracks, Belmont Park and Finger Lakes, along with Golden Gate Fields in California, which previously had been approved.
New York City OTB filed for Chapter 9 bankruptcy protection in December and threatened to close down altogether early this spring. After deciding at the 11th hour to remain open, it has reduced some statutory payments to New York tracks and breeders as well as state and local government.
“New York City OTB paid the Thoroughbred Breeding Fund [which distributes breeder awards] 31% of the money they owed for the month of April,” said Jeff Cannizzo, executive director of the 1,000-member New York Thoroughbred Breeders Inc. “This resulted in the fund receiving $100,021.63 out of the $323,796.67 owed, with no certainty of ever receiving [the balance].
“This is blatantly against the intent of the bankruptcy court and OTB’s obligation to keep current with statutory payments. As New York City OTB accounts for 38% of total fund revenue, these continued measures will be a death sentence for the breeding industry in New York.”
New York City OTB also has reduced some payments to the New York Racing Association and owes NYRA $17-million. Cannizzo praised the board’s order.
“Not only is New York City OTB not paying the New York industry for its rights to conduct wagering, they're paying out-of-state tracks on a regular schedule,” he said. “Simply put, they are using New York horsemen, breeders, and track dollars to keep their business afloat this year. This is yet again another red flag being waived, demonstrating the corruption and misaligned intent of New York City OTB. At some point, we must have a reformed industry model in New York.”
New York City OTB spokesman Ben Branham said the financial impact of the board’s action could not immediately be assessed.
“We are in discussions with the Racing and Wagering Board to rectify the situation,” he said.
Paul Post is a New-York-based Thoroughbred Times correspondent
READER COMMENTS
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Posted by: Wendell, Brooklyn, NY on May 26, 2010 at 10:11 AM
Let me get this straight:
The NYS Racing and Wagering Board,(a state entity) tells NYCOTB,(another state entity) it can't import simulcasts from out of stste tracks,damaging it's business and thus costing the state revenue. Brilliant!!
How do NYRA and the NYS Breeders expect to see their money if they choke OTB???
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Posted by: leonard euler, new york, NJ on May 25, 2010 at 07:08 PM
too lazy to go to court to assert its right to open on Easter Sundays, each and every, Palm Sunday and Christmas. If NYC OTB had done the right thing and gone to court years ago it would have had a little more to play with and shown the other OTBs who had the best thinking lawyer.
NY PML Sec 105 does not apply to the OTBs
NY PML Sec 105 violates the rights secured by NY Const. Art. 1, Sec.3.
Here is a betting proposition to hold NY State up for fun and cash.
find a destitute bettor who is a citizen of NJ
put said bettor in a canoe and paddle the bettor to NY and proceed to any NY State OTB and apply for a telephone/internet wagering account. if the bettor is denied same, proceed to the nearest federal court house and file papers.
The odds of winning may be obtained from your local betting lawyer.
It may verified in the library whether or not the law of the state of NJ prohibits its citizens from opening a betting account/phone/internet in another state.
Does such statute violate the Commerce Clause of the US Constitution?
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Posted by: John, Elmont, NY on May 25, 2010 at 04:08 PM
Cannizzo, has it right yet again. I hope Albany is listening.
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