NY Senate: Raise Takeout to Save OTB

[Robert Goren]

One thing more I have never thought getting the government into running a gambling business was good idea. They should regulate it and tax it. Gambling is not a need like roads or police.

[thespaah]

Originally Posted by Robert Goren

Busting the unions will not save it any more than slots. They tried that at Askarben and they went under anyway. Sometimes business just doesn't work any more and all the king's men can't put it back together again. They need to a long hard look at their basic product and see if they can improve it enough so that the business can be saved. Quick fixes like slots and union busting are not going work. I really think the time for OTBs has come and went. I am not sure cutting the takeout will work either, but it sure in hell wouldn't hurt. JMO

Sadly Aksarben was circling the bowl.
Getting rid of the unions reduces labor costs. Labor is cost. Costs have to be contained. The clerks should be paid the prevailing market rate for similar work. Not an inflated wage and benefit package coerced by a labor organization.
In any event. NYC OTB is obviously a problem. Common sense tells one that with that much money flowing through the windows of the shops, the company should be at least breaking even. Instead it is awash in red figures.
The simple response is that NYCOTB is a government run entity. Start form there to peel back the layers of the onion.

[thespaah]

Originally Posted by Robert Goren

One thing more I have never thought getting the government into running a gambling business was good idea. They should regulate it and tax it. Gambling is not a need like roads or police.

Correct.

[badcompany]

Originally Posted by thespaah

Sadly Aksarben was circling the bowl.
Getting rid of the unions reduces labor costs. Labor is cost. Costs have to be contained. The clerks should be paid the prevailing market rate for similar work. Not an inflated wage and benefit package coerced by a labor organization.
In any event. NYC OTB is obviously a problem. Common sense tells one that with that much money flowing through the windows of the shops, the company should be at least breaking even. Instead it is awash in red figures.
The simple response is that NYCOTB is a government run entity. Start form there to peel back the layers of the onion.

Unions, labor cartels, came about as a response to business cartels which kept wages/rates below the prevailing market rate.

Is that 1% percent interest you're getting at the bank the "prevailing" market rate, or is it a manipulated rate set by a banking cartel called the Federal Reserve in order to give its "members" a greater profit margin?

I can assure you I'm no fan of OTB clerks, but, there's no way it's the clerk's wages keeping OTB in the red. Hell, most of them have been replaced by machines, anyway. How many VPs have been replaced by machines?

[Robert Goren]

The problem is not enough money is being wagered. They have to address that if they can. If they can't or won't, cutting wages won't help. I have never seen a business survive by just cutting expenses. You have to have a product that people want. Right now not enough people want their product. If they were profitable 10 years ago, then they have got to look at what changed. I do not live in NYC, so I could only guess as to their problems. I know what sank Aksarben and it wasn't the wages of the tellers. It was that the buses from KC and Des Moines stopped coming because of other places to gamble. Aksarben was not able to get them back.JMO

[Nitro]

I certainly agree with most of the negative comments made here about the NYC OTB. It opened in the early 70’s and if I’m not mistaken it was the first OTB operation in the U.S. It was going to be the blueprint for all subsequent similar operations. Believe it or not they initially promised that their profits (coming from the 5% surcharge) would go entirely to help fuund education in NYS. What a joke that has been!

Instead, this organization became just like so many other government controlled operations. A total waste! People weren’t hired because they were capable of doing the job. They were hired because those above them knew that they could be easily controlled and manipulated. In the meantime, the OTB executives personally siphoned off as much as they could for their own personal gain. They answered to no one. As long as NYS was getting a piece of the action there was no real accountability.

How is it that they could owe so much revenue to the NYRA? I say follow the money, fine them all and lock them up! But that will never happen because the NYS politicians who were on the take certainly have no interest in risking being exposed themselves. The goose that laid the golden egg is now being cooked and all involved are scattering like cockroaches.

Why do we continue to let government (at any level) get involved in our private lives? You want to see the horseracing game thrive in one mighty swoop? Forget about the takeout: Just demand that ALL taxes on winning wagers be completely eliminated.

[Zman179]

I like how people always try to blame the unions when things don't go right. It's not the wages of the union members that drove NYCOTB into the red, it's the numerous $100,000+ making NON-UNION managers and executives (many of which are patronage jobs) in the corporation which wasted hundreds of millions of dollars over the years in perks, reimbursements, etc.

For a union member to make $100,000, he/she has to pull double shifts and 6 day weeks. Oh yeah, it's THAT guys fault.

[thespaah]

Originally Posted by badcompany

Unions, labor cartels, came about as a response to business cartels which kept wages/rates below the prevailing market rate.

Is that 1% percent interest you're getting at the bank the "prevailing" market rate, or is it a manipulated rate set by a banking cartel called the Federal Reserve in order to give its "members" a greater profit margin?

I can assure you I'm no fan of OTB clerks, but, there's no way it's the clerk's wages keeping OTB in the red. Hell, most of them have been replaced by machines, anyway. How many VPs have been replaced by machines?

What do banks have to do with this discussion?
That point is a nonsequitur.
Unions have overstayed their welcome and outlived their uselfulness.
At no time did I imply that the salaries to the clerks were THE problem. There are plenty of other overpaid people on OTB's payroll.

[thespaah]

Originally Posted by Zman179

I like how people always try to blame the unions when things don't go right. It's not the wages of the union members that drove NYCOTB into the red, it's the numerous $100,000+ making NON-UNION managers and executives (many of which are patronage jobs) in the corporation which wasted hundreds of millions of dollars over the years in perks, reimbursements, etc.

For a union member to make $100,000, he/she has to pull double shifts and 6 day weeks. Oh yeah, it's THAT guys fault.

Ok.....Yes the gung -ho pro union aspect.
FIne. It was never implied that unions or the clerks were the ONLY issue.
I stated very clearly that because OTB is a government run company, there is a problem.

[BELMONT 6-6-09]

In a fake world ...if all the decision makers would put their ineptitude aside and (1) reduce the takeouts to entice substancial handle increase (every study has proved this )(2) promote the game aggresively in order to compete with the other gambling events that were not available years ago when racing had the monopoly (3)Lower the tax burdon in order to entice new owners to this great game (4)Organize and hire a commissioner of racing , similar to other sports to emply uniform rules and regulations that would govern the sport. (5) get real serious with the drug violations that would be a real punishment and not a slap on the wrist. (6) use television to promote more prime time racing that would interest the young adults...hey it works in other countries.

I could go on and on and I am sure you players can add a lot more to the list. Basically if this were to take place the horsepeople, including the breeders, workers, trainers, owners etc would all see a better living.


Food for thought-

[Thomas Roulston]

Originally Posted by BELMONT 6-6-09

It's a real shame that the players (who fund the game). and the hard working horse people who work every day are at the mercy of the political hacks who can't even balance their own check books. The situation has progressively gotten worse through out the years and now with this lame brain ????governor??? and the other elected officials it it now a total disaster.


It has got to stop right here! Let the parasite NYCOTB (like Tom says) get cut loose and pick up the pieces and change the damm system that focuses on growth to compete with the many other gambling outlets that were non existent years ago.

Does that include the "hard-working people" who kept betting on Latka in the mid-'80s as she finished off the board in 25 consecutive races?

But if OTB is serious about survival, they need to hire Junior Gotti to run it.