- I was figuring that I should burn up the big 16 bucks I have left in my OTB account tonight. I'd even seen where OTB was encouraging customers to cash their tickets by today. What does that mean, that the Mayor would have those debts and obligations go unhonored?
But the NY Daily News is now reporting that the state and city have reached a last minute deal to keep the opeartion going, with the state indeed taking it over.
The city will receive some compensation on an annual basis but far less than it was seeking.The $19 million is the approximate amount of the surcharge on winnings that the city was not figuring in its calculations when it claimed that OTB was cash negative. While the city will be relieved of running the operation, seems to me that it could be a big loser on the bottom line versus living with the small overall shotfall projected for June, and working with NYRA and the state to reduce wasteful operations and look at ways to consolidate.
Under the formula, the city will receive $4.25 million of the $19 million it was seeking. [NYDN]
More on this as details emerge and the report is confirmed. Just wanted to mention that an extremely well-informed reader wrote to point out that State Senator John Sabini needs only the approval of Senator Bruno, and not that of Sheldon Silver, to become the new chairman of the State Racing and Wagering Board.