This is the press release about this morning's announcement regarding NYC OTB's Chapter 9 bankruptcy filing. Here's a key portion regarding OTB's strategy for getting back on its feet. And notice that it's the racing industry, and not the state or the city, which figures to take it hit if their plan is approved.
The business plan will call for a dramatic overhaul of the NYC OTB business model. New technologies are expected to enhance customer service while increasing efficiency and cutting costs. A new bricks and mortar strategy is intended to reinvent old storefront locations while creating new, modern flagship attractions in select city locations.UPDATE - NYRA responds that they have no response.
Most importantly, the business plan will ask for changes to the racing laws, including a modification of the current legislative distribution scheme, which at present require NYC OTB to calculate and pay the State, the City and the horse racing industry a percentage of gross wagers placed with NYC OTB. The business plan will propose instead that NYC OTB make calculations and payments to the horse racing industry based on Wagering Commission revenue it actually receives after allowance for costs of NYC OTB's functions have been met. NYC OTB will not be asking for any changes to the legislation as it relates to payments to the City and State. Without this change, NYC OTB may be forced to cease operations, which would cause the City, the State and horse racing industry to lose all revenues that could be provided by NYC OTB.
In response to today's announcement from the New York City Off-Track Betting Corporation (NYC OTB) that it intends to file a petition for adjustment of its debts under Chapter 9 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, The New York Racing Association, Inc. (NYRA) expects to be one of the largest creditors to the NYC OTB bankruptcy action and therefore it would not be prudent for NYRA to comment on the filing outside of the court proceedings.