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Wednesday, May 07, 2008

Mayor Mike Has a Winner

- Mayor Bloomberg seems to be faring a lot better in Albany regarding his efforts with NYC OTB than he did in his two big recent legislative defeats - his congestion pricing and teachers' tenure plans. Seems as if he's going to get exactly what he wants.

A key issue under discussion is a plan to address Mayor Bloomberg's concern about OTB's payments to the state, the city and the racing industry, said Paul Francis, Paterson's director of state operations.

Francis said a change in the formula would reduce OTB's partner payouts by 20%, or between $20 million and $25 million a year.

The reductions would be based on cash flow and affect the percentages OTB pays its partners, such as horsemen, breeders and the New York Racing Association, which operates the Aqueduct, Belmont and Saratoga Thoroughbred race tracks. [NY Daily News]
Actually, I'd call that the key issue rather than a key issue. They simply want to disburse less money, as would we all! Of course, absolutely nothing going on regarding any changes in the business model by which the relationship between OTB and NYRA is strictly competitive. James Odato reported on the Times Union's Capital Confidential blog that NYRA would get about $10 million to $12 million less per year from the betting corporation. If you think none of this will effect you, Odato, as reader JK pointed out yesterday, also reports that the other OTB's are calling for NYRA to raise the takeout rates; big surprise there. The so-called “take-out” is the lowest in the nation, the OTB operators complain.

- Capitol OTB stands to be reimbursed for a Derby day computer glitch that may have cost it around $400,000 in handle when betting went down for the hour leading up to post time, ouch!
[United Tote] has taken full responsibility for the wagering downtime, said [OTB President John] Signor and with respect to the counties and city of Schenectady, it will make good on whatever revenues were lost due to the problem. [Schenectady Gazette]

1 Comment:

Anonymous said...

Alan -

On his blog today, Paul Moran has posted a copy of "An open letter to the racing industry", written by Ross A. Fowler, who describes himself only as a lifelong racing fan. In 20 paragraphs he outlines some sweeping changes that would be needed if North American horse racing is to stop its further decline.

In the wake of Saturday's Derby, I found it to be particularly well thought out and sincere, and would be of high interest to many of your readers here, who like you are passionate fans of the sport.