The New York Racing Association‘s plan to emerge from bankruptcy is in jeopardy.
The Albany plan would let NYCOTB pay the NYRA 20% less than currently required. That translates to a projected loss of $12 million for NYRA, which runs the races NYCOTB makes the majority of its money from.
That would mean $7 million less towards purses and $5 million less to NYRA for operations.
To emerge from bankruptcy, NYRA has to have a feasibility plan finalized that would show how it could pay off its debt. Without the $5 million from NYCOTB it can’t.
The plan designed by the politicians in Albany clearly was done without much thinking toward the long run.
NYCOTB’s long-term problem is it has too many parlors that don’t make enough money due to competition from Internet betting and phone wagering.
That teletheather handles $100 million a year. The brand-new one that just opened in Toms River, N.J., is projected to handle more than $50 million. That is more than any NYCOTB parlor, even the ones in Manhattan.
The Albany plan is a Band-Aid. NYRA and NYCOTB will still be competing for the same dollar.
Plus, if approved, why wouldn’t the other five OTB corporations throughout the state to pay the NYRA less as well.
What Albany needs to do is get all six OTB corporations and NYRA into a room and hammer out a merger plan.
Create one phone wagering system and one Internet account system and have one tote company in place so if you buy a winner in Buffalo you can cash it at Belmont.
In the short term, Albany should consider giving NYCOTB some help regarding pari-mutuel taxes or the regulatory fee. Taking money away from the tracks, which put on the show, is ludicrous.