NYC OTB Demanding A Raise In NYRA Takeout

[trigger]

"In response, sources say, negotiators are considering a raise in the minimum takeout on bets, which state officials say would help to make up for the loss of money from the NYCOTB to the various racing industry groups. New York Mayor Michael Bloomberg said the city will no longer bail out the OTB, and he is threatening to shut it down next month unless the state provides a new formula by which revenues are distributed."
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"One idea being negotiated would raise the takeouts on bets in New York handled by NYRA, Finger Lakes racetrack, and the OTBs. It would set a new takeout floor, which currently is 14% for one horse bets; that level would be raised to 16.5%. On multiple bets, the legal takeout floor would go from 17% to 19%, according to one document."

http://news.bloodhorse.com/article/45341.htm

[DeanT]

I posted it in another topic, but what the hell, we can use it in many.

From a 2003 independent report on wagering, that racing paid for and summarily ignored:

Racing has lived with rising rates of takeout for so long that they have become a way of life. They are the line of least resistance whenever the industry needs money. It is all too easy for the industry to see that if we have a constant $100 in handle, and we raise the takeout by one percent, we’ll make a dollar more. It is much less easy to see that handle is not constant and, over the longer term if not the short, we won’t have that $100 any more.

[samyn on the green]

Lovable OTB, home of the 5% surcharge wants to raise takeout more, their business plan is failing so they want to squeeze more from everybody. NYRA is holding firm on behalf of the horseplayer.

OTB pushing NYRA to raise takeout (http://news.bloodhorse.com/article/45341.htm)

[classhandicapper]

Nothing can be resolved as long as government has anything to do with the process. It's really that simple. These guys are all either retarded or corrupt. Some of them are both. These kinds of thing need to be driven by the economics, not the politics. :bang:

[richrosa]

With the new even more liberal government in NYS and NYC, this is bound to happen. Its a more certain bet than Big Brown winning the Belmont.

[onefast99]

OTB will get what they want, NJ is threatening the OTB marketplace with more OTW's and it seems they are doing a great job in attracting crowds!

[alhattab]

OTB will get what they want, NJ is threatening the OTB marketplace with more OTW's and it seems they are doing a great job in attracting crowds!

NJ should build a palace in Jersey City or Hoboken. Might attract some local Yuppies and some people from NY. They'd need a dress code or "clubhouse" that would prohibit or segregate the few dirtbag-type NY refugees seeking relief from the NYOTB on the PATH (we'll take all the desirables though).

I saw a teller that works at Woodbridge and she says that place is a madhouse every weekend. Don't let the declining attendance at Mth fool you. The Tom's River and Woodbridge OTWs intercept many that would ordinarily make the trip.

Keep it up NY. Doesn't Bloomberg realize that moves like this will just make the "quality of life" issues surrounding the OTBs even worse?

[Imriledup]

North Jersey needs to dominate the simo center market...put the OTB's out of business. If those OTBs arent going to pay track prices, they ought to get squeezed out.