New York Franchise Award Recommendation May Come Nov. 21

[Java Gold@TFT]

Sorry to post this before you Indulto but it's just tooooooo stupid.

http://blog.timesunion.com/capitol/a...o-doom-nycotb/

“Today, after weeks of intensive negotiations with Senate and Assembly leadership, I submitted agreed upon legislation that provided for an interim solution to keep New York City Off-Track Betting Corporation (NYCOTB) operating. This plan included no additional commitment of taxpayer dollars. However, the Legislature adjourned before acting on the bill.

“The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the Legislature to solve the Corporation’s immediate cash flow problem by making adjustments to payments to the industry. Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution.

“Consequently, the closure of NYCOTB will have a profound impact on the 1,300 employees and their families. I am deeply saddened that we could not find a workable solution during this fiscal crisis to save any of these jobs.

“I will continue to work with my legislative partners and the stakeholders to keep racing viable in New York State.”

[badcompany]

[QUOTE]the Legislature adjourned before acting on the bill[\QUOTE]

Can you blame'm? It's a nice day.

[hibiscus]

It’s difficult to imagine that the vast bulk of the wagering dollar won’t find its way into the pari-mutuel system through some other channel. Most likely a channel that has a more intelligent distribution of the cut. Any shutdown of NYCOTB has to be a net positive for New York racing.

[Spendabuck85]

Efforts to pass legislation providing short-term rescues for New York City Off-Track Betting Corporation and the New York Racing Association collapsed on Wednesday afternoon, according to officials involved in the effort, resurrecting the possibility that the OTB company would shut down as early as Monday.

Legislators pulled their support for the bill because of concerns raised by unionized mutuel clerks over the size of severance and pension packages being offered to workers who are expected to be terminated as part of an overall restructuring of the OTB company, according to the officials.

In addition, the bill would have advanced approximately $17 million to the New York Racing Association to address what the association has said is a pressing need for cash prior to the late-July start of its Saratoga meet in upstate New York.

Full article at drf.com
http://www.drf.com/news/article/112168.html

[Indulto]

Originally Posted by Java Gold@TFT

Sorry to post this before you Indulto but it's just tooooooo stupid. ...

JG,
Glad to see that others are equally interested.

The fact that I haven't heard a single criticism of Pretlow's proposal from anyone other than Paterson tells me it's the only better alternative to NYCOTB's closing altogether.

[Indulto]

http://www.nydailynews.com/news/2010/04/14/2010-04-14_big_payouts_for_otb_workers_to_get_hefty_severa nce_raises_in_secret_deal.html
OTB workers to get hefty severance, raises in secret deal
BY Kenneth Lovett 04/14/2010

… The city's OTB and its major union, District Council 37, recently made a secret deal promising hefty buyouts and pay hikes of as much as 20%.

In exchange, the union conceded to major job reductions and an end to overtime, a copy of the deal shows.

The agreement threatens to torpedo an OTB bailout plan being hammered out by Gov. Paterson and lawmakers that would slash the organization's required payouts to the state's racing industry.

"We can't afford it," said Assembly Racing and Wagering Committee Chairman Gary Pretlow (D-Westchester).

OTB officials say the concessions would more than pay for the extra payouts to employees.

Under the deal, the 995 union employees would be slashed to no fewer than 412.

Full-time employees would be guaranteed $15,000 severance packages for voluntarily leaving.

Employees who remain on the job would be in line for 8% raises.

Many would receive additional hikes of up to 12% for working Sundays without overtime.

The agreement is contingent on the state bailout, and on lawmakers giving the thumbs up on OTB's plan to borrow up to $250 million.

Pretlow said the new borrowing won't be in any final agreement between the governor and Legislature.

It's unclear whether the union would agree to the concessions without the extra borrowing. …

http://www.businessweek.com/ap/financialnews/D9F2T7UG0.htm
Governor to offer proposal to bail out NYC OTB
By MICHAEL VIRTANEN 04/14/2010

… Paterson said the proposal would keep OTB from having to make regular dark day payments to tracks, create some new revenue sources, require cuts in management and consultant expenses and establish an early retirement and severance provision for workers.

He said it would advance revenue to keep the New York Racing Association afloat through its summer thoroughbred racing season at Saratoga and Belmont, which would be repaid from receipts anticipated from a future racino at its Aqueduct track. The measure would also institute a 15 percent across-the-board cut in OTB payments to NYRA, breeders and tracks for a year.

"It will address the problems for some period of time, but the feasibility of the program working, we have not found the solution," Paterson said. "Basically what it does is it shares the burden."

… "We have a plan to keep OTB afloat for another year until we can make some permanent decisions about how to restructure," Assembly Speaker Sheldon Silver said Tuesday.

… On Tuesday, the Civil Service Employees Association filed a contract grievance following Paterson's decision to withhold pay raises for state workers in the short-term spending measures to keep the state government running in the meantime.

The union said that affects 70,000 of its members working in the executive branch.

"We are already creating reductions just by the fact that we are cutting into the deficit in our biweekly extenders," Paterson said, adding the union could just wait for the raises until the budget is passed. "Every time you ask for cooperation, you either get no cooperation or a lawsuit, and now a grievance."

http://www.thoroughbredtimes.com/national-news/2010/April/14/Aqueduct-gaming-expected-to-take-another-3-months.aspx
Aqueduct gaming expected to take three months
by Paul PostApril 14, 2010

… Under separate proposals revealed Tuesday by both [political] parties, the decision would also be non-political and be based on the recommendation of an outside entity.

However, the bottom line in both scenarios is that a selection is about three months away, leaving questions regarding cash-strapped New York Racing Association’s ability to keep operating, especially with the cuts NYRA is expected to take under the state’s plan to save New York City Off Track Betting.

… A joint public hearing by the Assembly and Senate would follow with a final selection with 15 days, and the GOP anticipates its plan would take 2-3 months.

… Gov. David Paterson, a Democrat, said the selection should follow the state’s existing procurement process for all government contracts. Paterson said he would accept a recommendation by the state Division of Lottery, with input from other agencies. The Senate and Assembly leaders would still have to sign off on it, but if they objected, the burden would be on them to explain why. …

http://www.drf.com/news/article/112168.html
New York OTB effort falls apart
By Matt Hegarty4/14/2010

…

Legislators pulled their support for the bill because of concerns raised by unionized mutuel clerks over the size of severance and pension packages being offered to workers who are expected to be terminated as part of an overall restructuring of the OTB company, according to the officials.

The draft of the legislation included statutory changes that would have reduced OTB's payments to the Thoroughbred and harness racing industries by 15 percent across-the-board, according to officials. In addition, the bill would have advanced approximately $17 million to the New York Racing Association to address what the association has said is a pressing need for cash prior to the late-July start of its Saratoga meet in upstate New York.

"We're disappointed," said Charles Hayward, the chief executive officer of NYRA, who spent Tuesday and Wednesday in meetings with legislative staffers and officials of OTB to hammer out the plan. "We're going to continue to work with political leaders to find a solution to our problem, but we were hoping we could work all this out together with OTB. I don't know if that's possible right now."

… Gov. Paterson released a statement late Wednesday saying he believed OTB would shut down Monday.

"The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the legislature to solve the corporation's immediate cash-flow problem by making adjustments to payments to the industry," the statement read. "Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution." …

http://www.thoroughbredtimes.com/national-news/2010/April/14/Lawmakers-fail-to-reach-agreement-on-New-York-City-OTB.aspx
Lawmakers fail to reach agreement on New York City OTB
by Paul Post April 14, 2010

… Legislation that would have kept the bankrupt firm open never got to a vote because of objections raised by the union representing pari-mutuel clerks, the majority of New York City OTB’s 1,300 employees.

The bill also would have given New York Racing Association the money needed to get through the rest of this year. But legislators left Albany on Wednesday without taking action, leaving the fate of New York City OTB—and racing—entirely up in the air.

“What’s at stake here is the whole Thoroughbred racing and breeding industry,” NYRA President Charles Hayward said. “We’re extremely disappointed. We’ll see where it goes from here.”

NYRA, breeders, and other stakeholders were slated to take a 15% cut in New York City OTB statutory payments under the proposal, introduced by Gov. David Paterson. The reduction to NYRA and purses alone would have been more than $3.5-million.

“It wasn’t insignificant,” Hayward said.

… Under a plan originally proposed by New York City OTB Chairman Meyer Frucher, outgoing employees would have been given severance payments and those who remained would have received pay increases. Some of these items apparently were eliminated in the final bill that the union—District Council 37—rejected.

… Under the failed deal, the state would have given NYRA some of the $250-million budgeted to build a proposed Aqueduct racino. The state would have reimbursed NYRA for its 2009 and ‘10 capital projects totaling $17-million, giving NYRA the operating money needed to get through this year.

Hayward has said NYRA would have no trouble staying afloat until the Saratoga meet, slated to begin July 23, if New York City OTB remains open and keeps making statutory payments to NYRA. He was not optimistic when asked what might happen if New York City OTB closes.

“That’s another ballgame,” he said. “We’re going to run out of money sometime in 2010.”

[badcompany]

This pretty much hits it on the head:


http://www.nydailynews.com/opinions/...se_hockey.html


Horse hockey: Dysfunctional Albany mopes outdid themselves in killing OTB


Thursday, April 15th 2010, 4:00 AM

Gov. Paterson's declaration that the New York City Off-Track Betting Corp. will be allowed to close for good on Sunday is the culmination of the worst Albany train wreck in years.

And that's saying a lot.

The fallout from OTB failing to open its doors Monday will be devastating. More than 1,300 employees will join the unemployment line. The state's withering racing industry will be crippled.

Worst of all, taxpayers will be saddled with a whopping $700 million in shutdown costs - mostly to cover the pension and health benefits of OTB retirees.

Paterson apparently hopes to dump that bill onto New York City as the former owner, which would be unconscionable.

But he is not the only one to blame. Also guilty in this colossal fiasco are Assembly Speaker Sheldon Silver, Senate Democratic chief John Sampson and the rest of the mess called the Legislature.

After draining OTB of millions to prop up racing, after throwing it into bankruptcy court, after being warned that closure was coming, after promising to come up with a rescue plan, the bums left town yesterday without doing a thing.

Paterson attacked Silver and Sampson for bolting without even taking up the bill reflecting what he says was a three-way deal.

There's no way to know if that or anything else is true, because all the wheeling and dealing went on, as usual, in back rooms.

In fact, this is a perfect storm of Albany dysfunction. The pols spawned the ultimate unworkable program - a money-losing bookie outfit. They gave the staff unaffordable perks. They used it to subsidize a struggling private business. And when everything finally came apart, they ignored the best advice of experts, kowtowed to special interests and left taxpayers with cleanup costs.

Can New York State's pathetic excuse for a government get any worse?

[PaceAdvantage]

Of course, this won't prompt anyone to throw all these bums out of office. I'm sure they'll still be sitting there 10, 15, 20 years from now...nobody seems to give a shit anymore.

At least Joe Bruno (a guy some around here actually got behind during the NYRA fiasco) was finally forced out...let's vote out the rest for a true change.

I'll still be shocked if OTB is actually closed on Monday.

[Indulto]

Originally Posted by badcompany

... Worst of all, taxpayers will be saddled with a whopping $700 million in shutdown costs - mostly to cover the pension and health benefits of OTB retirees.

Paterson apparently hopes to dump that bill onto New York City as the former owner, which would be unconscionable. ...

http://www.drf.com/drfNewsArticle.do?NID=112184
The real cost of closing down OTB
By Matt Hegarty4/15/2010

…

Frucher … has frequently said that taxpayers in New York would be on the hook for $700 million if New York City OTB went out of business. …

… even OTB officials acknowledge that the legal basis for at least $550 million of that liability figure is questionable, introducing doubts about whether taxpayers would be liable for any ongoing payments to OTB's employees should the company shut down. …

… a section of the racing law passed in 1982 pertaining specifically to New York City OTB states that "the bonds, notes, or other obligations of the corporation shall not be a debt of either the state or the city, and neither the state nor the city shall be liable thereon, nor shall they be payable out of any funds other than those of the corporation."

The language of the statute suggests taxpayers cannot be held responsible for any unpaid obligations to OTB's terminated workers. …

… "There is no clear-cut answer for who has responsibility for the benefits if OTB does not continue to exist and has no assets," ….

… there is little precedent to determine obligations for the company in the event of a shutdown. …

… The majority of the money would be owed to workers as they became eligible for benefits far later in life and would therefore be paid out in increments over a long period of time. And if any of those fired workers were to find employment at a city or state agency, the liability for that worker would then transfer to the new agency and be wiped from the legacy of OTB's closing.

[Indulto]

http://www.bloodhorse.com/horse-racing/articles/56435/nycotb-bailout-deal-goes-up-in-smoke
NYCOTB Bailout Deal Goes Up in Smoke
By Tom Precious April 15, 2010

… A bill floated by Gov. David Paterson after days of top-level negotiations with the Legislature included a range of cuts in commissions and other revenue from the OTB corporations to racetracks. It landed with the loudest thud among Senate Democrats, who control the 62-member House.

Lawmakers said the plan didn’t have enough support to make it out of the Senate finance committee process.

… The maneuverings brought to the state Capitol a who’s who of industry interests, including the head of the New York Racing Association, which backed the measure because of $17 million in loans it would receive, to leaders of a union representing more than 1,000 NYCOTB workers which suddenly urged lawmakers to reject the latest set of proposals. Teams of lobbyists representing tracks, other OTB corporations, and horsemen’s groups also worked the hallways.

… “We think that this is the best we can come up with in a difficult situation,” Paterson said of his legislation, which was opposed by tracks, except NYRA, and an assortment of industry players.

… Pretlow said he was surprised at the level of opposition by the racing industry. NYCOTB handle about $1 billion each year.

“(The industry) opposed saving OTB, which I don’t know why, since they are their lifeblood,” Pretlow said. “I think eventually, they will see the handwriting.”

… Other tracks, though, opposed the bill, saying they couldn’t afford to lose the revenue to keep NYCOTB propped up for another year while a longer-term solution to the problems facing NYCOTB, as well as the other OTB corporations in the state, are considered.

Another blow came when District Council 37, which represents more than 1,000 NYCOTB workers, opposed the measure at the last minute. A source said the union had been made a number of promises by NYCOTB, including about $20 million or so in payments for back raises, an early retirement plan, and severance payments, including for per diem workers.

The union, in turn, was agreeing to job cuts of more than 500 positions. But legislators balked at several provisions, including using money for the union workers from a $250 million borrowing proposed by NYCOTB.

… Some lawmakers were privately pushing a shutdown scenario as a way to re-tool NYCOTB and force through certain cost savings they say management and the union have refused to back. There has also been a proposal to let NYRA take over its Internet and phone wagering platforms.

… Hayward said the measure that died in Albany would have pushed through some needed, money-saving changes at NYCOTB. "This would have saved jobs, reduced or continued payments to the industry, provided clarity for racing and NYRA and provided the first step towards improving the New York City OTB’s business model, which then could be transferred to some of the other OTBs," Hayward said. …

http://www.drf.com/news/article/112225.html
Could be the last call for New York City OTB
By Steven Crist4/16/2010

… NYCOTB in its current form is an unfixable relic of another era, and that racing in New York might ultimately be better served by starting fresh with a 21st century approach to offtrack betting.

… The solution proposed by OTB is to reduce its payments to the industry even further, which - like the takeout increases it has repeatedly gotten to avert previous crises - would only continue the downward spiral of racing. … The system just doesn't work anymore - not only because of its inherent structural flaws, but also because the game and the world have changed so much in OTB's four decades of existence.

… If NYCOTB does simply close shop this Sunday, its phone and online betting accounts could be seamlessly transferred to the NYRA. There would be initial confusion and a loss of handle from disenfranchised customers, but eventually a lot of the business would come back and with a higher proportion of commissions being paid as a fair price for the racing product, and a massive amount of overhead removed. Either the state or NYRA could continue to operate a few strategically-placed and improved teletheaters, which could not help being profitable if detached from the current OTB system. …

http://www.thoroughbredtimes.com/national-news/2010/April/16/NYC-OTB-to-decide-future-at-11-am-Saturday.aspx
NYC OTB to decide future at 11 a.m. Saturday
by Paul Post April 16, 2010

New York City Off-Track Betting Corp. has called a meeting for 11 a.m. EDT on Saturday, when its board of directors will decide whether to stay open or cease operations at 7 p.m. Sunday.

... A portion of all wagers made in-state supports New York’s breeding industry. That is not true of bets placed with out-of-state account-wagering outlets such as TwinSpires.com, XpressBet, Youbet, and TVG.

… On Friday, the New York State Racing and Wagering Board announced it would take steps to protect all winning bets and positive account balances in the event New York City OTB shuts down.

“While we have been hoping that New York City OTB could be transformed into a viable entity, we will be vigilant in protecting the customers in the eventuality that the corporation goes out of business,” said John Sabini, chairman of the Racing and Wagering Board. “This board will do everything in its power to ensure all customers with open accounts at New York City OTB and all with uncashed winning tickets there are made whole, dollar for dollar.”

New York City OTB made its own announcement ensuring that customers’ money is safe. Such funds are held in a separate bank account, designated as containing “customer” funds and deposits, that is fully funded and entirely segregated from the corporation’s own corporate funds, OTB says.

… “Discussions are going on, but we haven’t heard anything significant yet,” Racing and Wagering Board spokesman Joseph Mahoney said Friday. “We’ll know when everyone else knows.”

Saturday’s OTB meeting will be videostreamed live on the Web site: www.nycotb.com

[Indulto]

http://www.bloodhorse.com/horse-racing/articles/56498/new-york-otbs-avoid-april-18-shutdown?source=rss
New York OTBs Avoid April 18 Shutdown
By Tom Precious April 17, 2010

… the board, which has been relying on state officials for a rescue plan, appears to now be putting much of its future on a bankruptcy creditors committee to help restructure its finances. NYCOTB filed for Chapter 9 bankruptcy reorganization protection last year.

Meyer Frucher, chairman of the NYCOTB, said he has been encouraged that state officials in the past week were close to approving a deal to lower its statutory payments to racetracks. That, he said, has never received serious consideration at the Capitol after years of requests from the money-losing operation.

The chairman said the only immediate legislation needed by the OTB is a bill to provide an early retirement incentive to employees so it can trim its workforce.

… In a briefing with reporters, Frucher revealed more of how the OTB, which officials in Albany were led to believe was out of money after this weekend, would be able to stay afloat. The OTB head said statutory payments to tracks and others will be delayed – not reduced.

“We can’t be forced to pay money we don’t have,” Frucher said. “We’re simply exercising our administrative prerogatives.”

… The OTB is also going ahead with installing as many as 600 “quick bet” machines in sports bars. The Assembly killed an idea pushed by Frucher to open as many as 1,600 betting kiosks, with automatic teller machines, in bars and other places across the city. But OTB officials were told by negotiators last week that there is nothing stopping the corporation from installed the kinds of unstaffed betting devices already in use by OTBs on Long Island and in the Albany area.

“As usual, the Speaker prevailed,” Frucher said of Assembly Speaker Sheldon Silver, who blocked the OTB from installing the machines in far more settings.

The new machines would not include the ATM features, and Frucher said they would be limited to sports bars. The state Racing and Wagering Board would have to approve every device installed.

Frucher said the devices are necessary if the OTB is to cut its costs by closing betting parlors. He said within a year two-thirds of the 66 parlors now spread through the five boroughs will be shut down. The devices will help replace betting revenues that now stream from the parlors, which account for about two-thirds of the NYCOTB’s revenues.

http://www.thoroughbredtimes.com/national-news/2010/April/17/NYC-OTB-to-remain-open-through-2010.aspx
NYC OTB to remain open through 2010
by Paul PostApril 17, 2010

… The New York Racing Association and New York breeders will not have to take a 15% cut in OTB revenues, but probably will receive delayed payments of undetermined length.

“I can’t quantify at this point the amount of pain that we’ll be inflicting on the (racing) industry,” Frucher said. “There will be pain. You can’t pay what you don’t have.”

… In addition to job cuts, New York City OTB’s management payroll will be slashed and most of its vehicles will be sold.

“I expect that within a year this organization will be half the size it was,” Frucher said. “The process will begin immediately, starting Monday.”

… “Mr. Frucher is just pulling everyone's chain,” said Barry Ostrager, New York Thoroughbred Breeders Inc. president. “He absolutely, positively, definitely can’t do most of the things he proposes without legislative authorization. Since he can neither lead nor follow, he should just get out of the way.”

http://www.nydailynews.com/ny_local/2010/04/17/2010-04-17_nyc_otb_rescinds_shutdown_order_1300_worker_job s_saved__for_now.html
NYC OTB rescinds shutdown order; 1,300 worker jobs safe ... for now
By Tina Moore April 17th 2010

…

Frucher said the agency would defer payments to creditors, put betting terminals in bars and cut more than half its staff in the next year.

They will also cut by two-thirds the number of betting parlors it operates and push legislation to give workers early retirement.

The turnaround triggered frustration among some who took part in negotiations involving the Legislature and Gov. Paterson over the state's racing industry.

"They cried poverty one week and the next week they say they can keep their doors open for another year?" said Austin Shafran, spokesman for the state Senate's Democratic majority. "This demonstrates an overwhelming need for an honest and clear accounting of OTB's finances and operations before any taxpayer dollars spent."

… Assemblyman Gary Pretlow (D-Westchester) - chairman of the Racing and Wagering Committee - said he suspected OTB wouldn't follow through on its threat.

"With this extended time, I think they can now look at some real cost-cutting measures to make OTB a financially viable operation," he said. …

[Indulto]

http://www.troyrecord.com/articles/2010/04/18/news/doc4bca93278e2cc296000181.txt
NYC OTB to stay open; layoffs, shop closings ahead
By Paul Post April 18, 2010

… The bankrupt firm has decided not to cease operations today, as threatened, which apparently eliminates the threat of a New York racing shutdown as well.

New York Racing Association had said the Belmont Stakes and Saratoga Race Course season would be jeopardized if OTB closed. However, the full impact of OTB’s moves won’t be known until its plan starts taking effect.

… At present, $700 million of New York City OTB’s $900 million in handle comes from neighborhood betting shops, leading some to question the wisdom of closing such sites. OTB spokesman David Vermillion said the transition would be made over a 12- to 18-month process, and that financial projections support such action.

… closing now makes little sense because the Belmont Stakes and lucrative Saratoga Race Course season are fast approaching, when OTB can make the most money. …

http://www.nydailynews.com/sports/more_sports/2010/04/18/2010-04-18_untitled__races18s.html
The Day at the Races
By Jerry BossertApril 18th 2010

…

Frucher mentioned the obvious of cutting costs and reducing parlors, but he also brought up deferring subsidy payments to the industry.

"We'll pay Yonkers and NYRA 100% on the dollar for their races," Frucher said of NYCOTB, which is $95 million in debt.

But when it comes to paying New York tracks for bets NYCOTB takes on out-of-state races, there will be a delay.

… Joe Faraldo, president of the Standardbred Owners Association, called Frucher's deferral of payments "a joke - take our product and not pay us for it."

Frucher responded, "Everybody plays to their own account. Nobody wants to give up anything. Horse racing isn't about horses anymore. It's about pigs. Until everyone gives up its own interest, it's not going to work."

… "Until we're forced to sit down in a room and act like businessmen we're going to continue to pull it apart. The goose that laid the golden egg is going to die."

[Indulto]

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-04-19truthiness-has-consequences/
Truthiness has Consequences
By Vic Zast April 19, 2010

… lawmakers left their jobs for the weekend on Wednesday evening, knowing full well that there wasn’t going to be leave-taking from the banquet table by the State’s legalized bookmakers on Sunday.

… Saturday’s meeting of the Board merely revealed that the situation wasn’t as financially dire as previously thought. Sandy Frucher, NYCOTB chairman, promised changes in the future. Believe it when you see them.

… To its shame, horse racing is fraught with practitioners in every corner of the industry who have confused the concepts of political posturing and prevarication.

… NYRA isn’t looking to get something for nothing; it surrendered its claim of ownership of Belmont Park, Aqueduct Racetrack and Saratoga Racecourse properties in return for the money. What’s at question is how badly and urgently the money is needed.

… that NYRA has revised its estimate of when it will cease operations because of lack of funds several times doesn’t enhance its reputation as a truth server.

…it’s sad that duplicity and hyperbole are considered the only tactics effective in negotiating.
Even an occasional false utterance for the purpose of dealing with an inattentive foe can lead to corrosive consequences. A problem with not telling the truth in one circumstance and telling the truth in another is that people conclude that you never tell the truth. …

http://www.thoroughbredtimes.com/national-news/2010/April/20/Groups-call-for-resignation-of-NYC-OTB-chairman.aspx
Groups call for resignation of NYC OTB chairman
by Paul Post April 20, 2010

Two Thoroughbred groups … are calling for an investigation by the state attorney general following OTB’s decision to remain open after a threatened shutdown.

… “They (OTB) have been warning Albany that they are going to have to close their doors unless they stop paying the Thoroughbred industry its fair share of the receipts, only to magically find the dollars needed to keep operating when the (state) legislature refuses to cave to their demands,” said Rick Violette, New York Thoroughbred Horsemen’s Association president. “It warrants the attention of the New York state attorney general (Andrew Cuomo) because the stench from the New York City OTB can be detected from the furthest stable.”

New York Thoroughbred Breeders Inc. Executive Director Jeff Cannizzo said, “Mr. Frucher has sought to hijack a process that was meant to save New York City OTB and Thoroughbred racing in New York.”

Both groups say OTB should be closed, restructured, and that the state should act quickly to site a racino at Aqueduct.

OTB spokesman David Vermillion said, “Our books have been audited by the state comptroller and remain available to any public agency for audit or review. Further, our books will be available to the creditors committee through the bankruptcy court as part of negotiations with our creditors on a solution to save racing in New York. Any further response would dignify this silly diatribe from racing industry stakeholders whose sole stated purpose is to put New York City OTB’s employees out of work and who have refused to come to the table to negotiate with all stakeholders over a long-term plan for the industry.” …

http://www.recordonline.com/apps/pbcs.dll/article?AID=/20100420/NEWS/100429965/-1/SITEMAP
State lawmakers say city OTB created phony crisis
By vwhitman 04/20/10

State lawmakers are slamming the New York City Off Track Betting Corp., saying the company created a phony crisis in a failed bid to win concessions.

… after state lawmakers left Albany on Friday without taking action, the OTB announced it was staying open for a year and was rescinding 1,300 layoffs. The company announced it plans to negotiate with the New York Racing Association and other creditors in U.S. Bankruptcy Court, and defer some payments.

“What a tremendous waste of time and energy,” said Assemblywoman Aileen Gunther, D-C-Forestburgh, who last week expressed concern that the OTB might shut down.

“OTB’s credibility is shot. Following years of bad business decisions and indifference to the New York racing industry, NYC OTB manufactured a crisis in which the futures of approximately 1,300 OTB employees and union members were forced to be weighed against the long term health and wellbeing of a racing industry responsible for more than 40,000 jobs across the state of New York, said Gunther.” …

http://www.midhudsonnews.com/News/2010/April/20/NYCOTB_Gunther-20Apr10.htm
NYC OTB “cried wolf,” says Gunther

Assemblywoman Aileen Gunther, in whose district the Monticello facility lies, is infuriated, calling the so-called NYCOTB crisis “a game of chicken” that OTB lost.

OTB Chairman Sandy Frucher said he could take administrative moves to keep the operations going. Many of those ideas, said Gunther, came from the State Assembly Racing and Wagering Committee.

The Thoroughbred Breeders and Horsemen and the Standardbred Owners Association of New York both voiced outrage with OTB. The Thoroughbred Breeders and Horsemen have called on the attorney general to investigate “the obvious double set of books” used by NYC OTB. …

http://www.queenscourier.com/articles/2010/04/20/news/top_stories/doc4bcddd9712f00155297698.txtOTB board votes to stagger on
BY VICTOR G. MIMONIApril 20, 2010

It was Mark Twain who first said “Rumors of my death have been greatly exaggerated.” If the management of the former New York City Off-Track Betting Corporation (NYC OTB) is to be believed, the same goes for them, too.

… On Wednesday, April 14, Governor David Paterson sent an OTB bailout plan to the Legislature, which went home for the weekend without looking at it. As late as that Friday, state officials were presuming the beleaguered bet-taker dead, with …
… Nevertheless, Frucher said that progress in negotiations convinced the board to keep the doors open. “All parties recognized that closing NYC OTB now would be a catastrophe to the racing industry,” he said at the meeting.

… A source close to Assembly Speaker Sheldon Silver cast doubt on speedy approval of the kiosk/betting machine plan, saying, “He’s not a big fan of gambling to begin with and he’s not likely to look favorably on putting more betting machines for horse races . . . in bars all over the city.”

[Indulto]

http://www.timesunion.com/AspStories/story.asp?storyID=924505&category=OPINION
Let NYRA choose its own partner
Letter to the Editor
By Joseph W. Dalton Jr., President, Saratoga County Chamber of Commerce April 23, 2010

Here we go again. Our state elected officials continue to play the game of patronage and politics with an industry that employs 34,000 New Yorkers and means more than $213 million annually to our nine-county area from Columbia County to Warren County.

… The state has had nine years to pick an operator for video lottery machines at Aqueduct Race Track, and hasn't done so. The downside of that indecision is that New York, which is broke, has lost an estimated $1 million a day. That's real money.

The state is in financial default on a legal contract that guaranteed money to the New York Racing Association, if VLTs were not in place a year ago.

It is time to allow NYRA to choose its own partner to operate VLTs, just as every other track with VLTs in New York has done.

… The state's demands for operations and sharing of revenues have been in place for years. Enough is enough. Move immediately to allow NYRA to choose a VLT operator.

http://www.saratogian.com/articles/2010/04/23/news/doc4bd1d4f558678217899560.txt
NYC Off Track Betting slashes management in bid to save $2 million
By PAUL POST April 23, 2010

New York City Off Track Betting Corp. has slashed 35 non-union management positions …

The cuts, implemented Thursday and today, are expected to save $2 million and hundreds more non-union positions are targeted as OTB restructures its business model.

OTB plans to close two-thirds of its 60-plus betting shops and replace them with self-service Internet wagering machines in places such as sports bars throughout New York City.

“I’m in shock,” said a high level official, requesting anonymity, adding he was taken completely by surprise.

.... “While regrettable, this action is a necessary step to operate our business more efficiently and effectively as we look toward a new future,” Chairman Meyer “Sandy” Frucher, said in a Thursdsay letter to New York State Racing and Wagering Board Chairman John Sabini. “While a much more significant downsizing of our workforce lies ahead, this step is one we decided to take without delay as we await legislation enabling us to provide an early retirement incentive program. Once this legislation is passed we expect to work with our union partners to implement further reductions.”

Formal legislation would clarify things. But Assembly racing committee Chairman Gary Pretlow, D-Yonkers, says it might not be needed. Retirement packages might be offered administratively through New York City’s pension fund system, he said.

… Pretlow said that most – if not all – OTB plans don’t require legislative approval. The state took over New York City OTB last summer. As such, it’s comparable to a state authority and falls under control of the executive branch, so legislative action isn’t needed for OTB’s restructuring, he said.

… Frucher says OTB will likely have to delay some statutory payments to racetracks and breeders until its cash-flow situation improves. Frucher has pledged to submit cash-flow statements, operating budgets, operational plans and status reports to the Racing and Wagering Board by next Friday, April 30.

http://www.bloodhorse.com/horse-racing/articles/56625/nyra-seeks-state-loan-nyotb-cuts-staff
NYRA Seeks State Loan; NYOTB Cuts Staff
By Tom Precious April 23, 2010

… NYRA officials were left scrambling to get their own bill after the NYCOTB measure was scuttled. The governor quietly proposed the new NYRA loan bill April 22.

The measure would let NYRA borrow $17 million from a $250 million lending program the state had previously approved for construction work of a casino at Aqueduct racetrack. The state has yet to select a casino vendor; the fourth procurement process since 2001 is set to begin soon, and Paterson has been saying he expects an operator to be selected by the end of June.

NYRA would re-pay the money from proceeds that a future casino operator at Aqueduct is slated to provide NYRA in the form of revenue-sharing payments. The borrowing would have to be approved by a state panel that oversees NYRA’s finances and the governor’s budget director.

… “It would be premature to comment on any program bill that as yet has not been introduced," NYRA President Charles Hayward said.

… The OTB declined to provide names of people let go, but a spokesman said they included various administrative managers and executive directors of different units. They also declined to provide a list of the specific salaries of those losing their jobs.

The OTB envisions a severance package for those losing their jobs, which privately did not go over well among representatives of some racetracks, who are going to see revenue-sharing payment delays from the OTB in the coming weeks and months.

The OTB this week was pushing a plan at the Legislature to provide incentives to a large share of its unionized staff to retire early. A spokesman said the severance effort would also include the 35 non-union workers let go April 23. The state Legislature would have to approve any such severance plan for the state-owned OTB.

... “Transparency and cooperation are essential as critical issues wil have to be addressed in a timely and expedited fashion," Sabini wrote Frucher.

Sabini also noted how he agreed with Frucher on the need for industry-wide cooperation to deal with the problems confronting tracks and OTBs, but called it “unfortunate’’ that Frucher did not “take that opportunity" to testify with other stakeholders before a gubernatorial task force on the future of the OTB industry in New York. …

[Indulto]

http://www.nypost.com/p/news/local/that_odds_broke_otb_saddled_with_PnA4FmVVa3sWFjiUg ByGgO
That's odds: Broke OTB saddled with 25G PR bill
By DAVID SEIFMAN Apr. 26, 2010

The city's tottering Off-Track Betting Corp. is shelling out $25,000 a month to a top public-relations firm even as it's going through bankruptcy, …

The money is going to Edelman Public Relations under a two-year contract that began last November.

David Vermillion, the Edelman vice president overseeing the OTB account, defended the expenditure as "good value" for the struggling betting operation, …

… Vermillion said Edelman communicates with customers, employees, the media and runs a Web site.

Gary Pretlow (D-Westchester), chairman of the Assembly Racing and Wagering Committee and a frequent OTB critic, said, "They're spending money like they're making money. They're not." …

http://www.saratogian.com/articles/2010/04/27/news/doc4bd63fe9c32e2010851446.txt
Senate measure would prevent racing shutdown
By PAUL POST April 27, 2010

A bill that would prevent a New York racing shutdown has been introduced in the state Senate, but still needs an Assembly sponsor.

… "They want to show the industry, the region, the state that NYRA is important and that Saratoga is very important," said a legislative source, requesting anonymity. "They don’t want to put the industry in a compromised position. It’s definitely something we’re not taking lightly. They definitely want to make sure people who live in the Saratoga region keep benefiting from the industry they have."

… "We’re reviewing it," said Dan Weiller, a spokesman for Assembly Speaker Sheldon Silver. He declined further comment. Silver, D-Brooklyn, is viewed by many as wielding the most power and influence in the statehouse.

The source said the bill will probably start going through Senate committees in the next few days, regardless of what the Assembly does. The next Senate racing committee meeting is scheduled for May 4.

… It’s important to keep all stakeholders involved and abreast of the facts, to assure them that other racing initiatives won’t be sidetracked by Paterson’s proposal, the source said. ...

http://www.bloodhorse.com/horse-racing/articles/56718/nyc-otb-workers-in-line-for-pay-hikes
NYC OTB Workers in Line for Pay Hikes
By Tom Precious April 28, 2010

… the raises are retroactive to make up for no pay hikes over the past couple years, and won’t be paid out until the OTB comes up with a long-term agreement with the industry and state to make the money-losing operation viable.

The unionized workers would get two 4% raises – paid in an unknown lump sum amount – to cover 2008 and 2009. He said the raises would make up for a period when the OTB workers fell between the cracks and did not get raises when the OTB was transferred from ownership by the New York city government to the state.

… The raises would also permit the workers to get larger pension payments under a bill being negotiated at the state Capitol to provide incentives to get a large share of the OTB’s workforce to retire early.

… “We’re not talking about any cash at this point,” Frucher said of the raises. He said the raises are contingent upon a borrowing plan and agreements by the unions to reduce the OTB staff by upwards of 65% over the next year. The raises are also linked to various concessions, including an end to double-pay for working on Sundays and job reclassifications.

… The deal was negotiated with the union representing OTB workers about six months ago.

In New York, government pension payments are based on a government worker’s final three years of average salary. Frucher said the OTB workers deserve the higher pension payments – under the bill being negotiated at the Capitol – because they were denied salary increases over the past couple years. This would allow the OTB workers to get the raises and have them count towards their pension credits under the early retirement bill.

… Frucher said he could not immediately provide the total price tag for the raises for more than 1,000 workers. But he said any payments are down the road and will only happen if all the other conditions fall into place.

The OTB is also set to offer workers not eligible for early retirement incentives a severance package that would total as much as $15,000. Lawmakers privately complained the package also would pay $3,000 or more to some part-time and per diem workers.

http://www.nypost.com/p/news/opinion/opedcolumnists/racing_big_losers_7LLIoqqrQoW4HLUmSeEniP
Racing's big losers
Why NYRA & OTB are a mess
By Raymond J. Keating April 26, 2010

Corruption, shady jobs, payola, cooked books, wise guys -- and oceans of red ink. For many, that's what comes to mind when they think of horse racing. In New York, much of the industry's woes can be traced to one source:

govern ment. Isn't it time we scratch state and local government -- and politics -- from the card, once and for all?

… Off-Track Betting. It's a holy mess. The bankrupt New York City OTB, for example, claimed it would have to close without a bailout. The bailout, amazingly, did not come. Yet the city OTB quickly changed its tune on April 17, saying it could stay open for another year. How? Under its plan, 60 percent of betting parlors will be shut and staff trimmed (35 non-union jobs were cut Friday). At the same time, OTB plans to install hundreds of Qwik Bet terminals in sports bars. And oh, yes -- New York City OTB will delay paying its bills as well.

Meanwhile, the OTBs in Nassau and Suffolk counties are best known as patronage mills, serving whichever political party happens to be in charge. After being out of power for a decade, the GOP now has a legislative majority in Nassau County, so that means new spots for party operatives at OTB.

... the annual profit that Nassau OTB hands over to the county has disappeared (though county government still gets revenues from a tax on winning bets).

… Yes, horse racing has suffered a decline in popularity. But under a government model, it's no surprise that the bookie loses dough: The tracks are shabby, grossly underused and can't make money; patronage, political wheeling and dealing, and corruption flourish; books are cooked, and taxpayers, racing fans and the industry suffer. Politicians call the shots, so the focus is not on serving the customer but instead is about serving political interests.

... It's time to sell off OTBs around the state and privatize the three state-owned tracks or, at the very least, bid out track operations under a true competitive process. A Triple Crown winner would be great, but getting horse racing in New York out of the hands of political operators would be even better.

http://www.longislandpress.com/2010/04/28/off-the-reservation-the-lighthouse-project-casino/
Off the Reservation: The Lighthouse Project Casino
By Jed Morey on Apr 28th, 2010

… Shinnecock will have many chefs in their kitchen (I’m resisting the “too many chiefs” reference) as they try to establish a casino in any state that begins with “New” and ends in “York.” Look no further than the New York Racing Association (NYRA) and the six Off Track Betting regions in New York State, none of which turn a profit. NYRA is in bankruptcy, New York City OTB might as well be, and horse racing in New York is in danger of extinction as a result. This is due more to the financial mandates of the state than it is to the decline in betting revenues. New York State is in such dire financial straits that it’s difficult to imagine a scenario in which Albany acquiesces to the desire of the Nassau Republicans to revitalize their hopes for the Hub. Add to the mix that Sheldon Silver, hands down the most powerful politician in the state, detests gambling and you have a recipe for failure.

But the most powerful foe in this process won’t be the most immediate one. The “powers that be” with interests in Las Vegas simply cannot afford to allow a casino so close to New York City. Atlantic City might as well disappear completely. One can point to the success of the casinos operated by the Oneida and Seneca Nations located in upstate New York, not to mention Connecticut’s Mohegan Sun and Foxwoods, to understand that the closer to New York City you place a casino, the more successful it is. Then track the number of flights from the tri-state area with Vegas as the final destination and consider how important this market really is. A large-scale, sophisticated Class III gaming facility 40 minutes from New York City by train and in the center of Long Island is death for all the others. The politicians in New York City will be damned if they lose one reverse-commuting thrill seeker, the politicians upstate can’t afford the potential revenue and job losses and New Jersey, well, to hell with Jersey. …