NYC-OTB

[DerbyTrail]

Originally Posted by Gibbon

OTB finances a complex equation
By MATT HEGARTY
http://www.drf.com/news/article/90395.html

The important section of Hegarty's piece to highlight was his deciphering of what's actually in NYC OTB's results.. NYC OTB is making money after including the city surcharge they write as an expense... Profitable by +$11 million in 2006 according to Hegarty when sifting through the filings.

Hegarty and Steve Crist utterly debunked Bloomberg's gross fallacy over the past weekend in DRF. In fact, it turns out that NYC OTB's problems can be largely traced to their own miscalculation 4 years ago, coinciding exactly with their 'losses', when they pushed for night thoroughbred action. After lining up Mountaineer and Penn National and making a deal to stipend the harness tracks, the geniuses discovered there was little income in the TB evening sessions. Oops!

So now they're paying a premium back to the harness tracks on business that existed before their tactical error. But somehow it's Albany's fault. I'm no fan of Albany and their inept meddling in racing, but here is one case where they are a somewhat innocent bystander. Albany didn't appoint the mayor's cousin, or Allie Sherman years ago, to run the thing. The mayor's of NYC did. As usual, Crist seperates the wheat from the chaff.

CRIST: Bloomberg way off base on OTB (DRF Plus subscription required)
http://www.drf.com/drfNewsArticle.do?NID=90405

And Paul Moran picked up the gauntlet this week as well...
FIXING OTB IN NYC
By Paul Moran (http://www.paulmoranattheraces.blogspot.com)

[classhandicapper]

Originally Posted by PaceAdvantage

How can an entity that takes in $1billion+ in action every year close its doors? It will never happen....somebody will step in (ie. the state) to shore things up....too many cushy political patronage jobs to save....and too much money to NY state to ignore....

I estimate the probability of NYC OTB closing down at less than 1%.

I have a lot of knowledge about NYC OTB (especially the Queens branches). There are a few branches that should probably be closed, but overall, the NYC branches are run very well even if they aren't attractive.

There is a bit of a problem with salaries, but it's mostly a Sunday and Holiday issue and not the day to day pay or benefits.

Sundays are double time for part timers, full timers and managers. Per deims get time and a half. That works out to a lot of money because part timers and full timers at NYCOTB get about $22.50 per hour regular time and managers get $30 per hour and more. Per deims get $17.50 per hour, but no benefits. I've never seen the numbers, but I doubt many branches are making a lot of money on Sunday. However, I see no way the union is going to give back a pay benefit that most employees consider essential to making a living wage in NYC.

There are also problems with the idea of merging the various OTBs because as I understand it, there are actually different unions, totally different salary structures etc.... There is also a general belief that at least one of the unions is more corrupt than usual (if you know what I mean). The same problem would make any idea of merging the OTBs with NYRA difficult. The corruption problem (if you know what I mean) is supposedly not inside the NYC OTB. (that is heresay).

NYCOTB is probably going to close a few branches totally, close a few on Sunday, and work out some changes in the payments, but it definitely won't close down yet.

I don't see much future for it though. More and more customers are opening phone accounts and only use the branches to make quick deposits and withdrawals. I believe OTB makes less money on phone wagering because it gives track prices. That trend should accelerate with the addition of NYCOTB internet wagering and NYRA internet wagering (not to mention all the other internet options).

[Gibbon]

And so the battle begins...

Last Updated: April 16, 2008
Preliminary negotiations have begun at the state Capitol in Albany to address New York Mayor Michael Bloomberg’s threat to shut down the New York City Off-Track Betting Corp. in June.

Bloomberg has said the city will no longer provide money to prop up the OTBs, and wants to re-direct money that the money-losing operation now directs to the state and racetracks back into its own ledgers --> bloodhorse

[misscashalot]

Originally Posted by Spectacular Sid

I don't live in NYC, but isn't phone/account wagering legal there? If so, is OTB really necessary?

You missing one important point here Sid. OTB is, for many bettors, a center for socializing using horse playing as a matrix. Along with that is the constant exchange of capping ideas. I lived in Hawaii that allows NO gambling of any sort, and played at my puter, phoning in bets, so I know the advantages of attending the track or an OTB shop. As you state, you don't live in NYC, but I wonder if you did live in a metropolitan area, would you find the benfits of visiting OTB shops an advantage?