Assembly Passes Legislation To Preserve New York City Off-Track Betting

Assembly Speaker Sheldon Silver and Assembly Racing, Gaming and Wagering Committee Chair Gary Pretlow announced today the passage of legislation (A.11635/Pretlow) to assist the struggling New York City Off-Track Betting Corporation, by permitting an immediate takeover of its Board of Directors and wagering operations by New York State. The agreement, reached last week between the state and city, will prevent OTB from eliminating 1,500 jobs.

"The Assembly voted today to preserve this integral component of New York's horse racing industry," said Silver (D-Manhattan). "This agreement will increase the NYC OTB cash flow and allow it to continue playing a vital role in the industry, while at the same time preserve jobs."

"As a top priority of those involved, this agreement helped prevent 1,500 hardworking OTB employees from leaving work one day and returning to a shuttered parlor the next," said Pretlow (D-Mount Vernon). "The racing industry is crucial to the inextricably linked economies of the state and city. With a new board of directors, continued simulcasting and restructured profit sharing between the state and city, New York can create more competition and greater room for expansion across the racing industry."

Among the terms of the agreement:

• NYC OTB will continue its wagering operations as a public benefit corporation and its employees will remain and be deemed employees of the corporation and members in the New York City Employee Retirement System.
• The state will immediately takeover the NYC OTB Board of Directors by appointing five board members; three by the Governor and one each from the Assembly and Senate.
• There will be increased cash flow to NYC OTB by providing an increase of one percent on in-state and out-of-state take out, providing access to the Capital Acquisition Fund and by allowing the corporation to retain surcharge money that would otherwise have gone to the city.
• The city will continue receiving a percentage of the surcharge issued on bets placed on races at Aqueduct and Belmont and will receive an annual contract fee of $3.25 million for three years for access to cable channel racing broadcasts.