New York Franchise Award Recommendation May Come Nov. 21

[KingChas]

Originally Posted by PaceAdvantage

Slots at any NYRA racetrack should be viewed as an abomination.

Does this mean I can't go to the Saratoga harness track this year,PA?

[Indulto]

Originally Posted by PaceAdvantage

Slots at any NYRA racetrack should be viewed as an abomination.

It isn't just NYRA that needs the money from VLTs now. At this point Hayward and the board couldn't care less who the operator is; only that there is one.

http://www.timesunion.com/AspStories/story.asp?storyID=953431
They're off -- but where to?
As yearly Saratoga meet gets under way, racing's future is open to question
By DENNIS YUSKO July 23, 2010

…

VLTs are now in eight New York casinos, including Saratoga Gaming and Raceway, which used to be a dying harness track. VLT money greatly increased the facility's race purses and saved several other harness tracks in the state, said Bennett Liebman, a NYRA board member who is director of the Government Law Center at Albany Law School.

… VLTs make money. The eight casinos in the state made a net of $1.04 billion in the fiscal year ending in March, up 7.5 percent from last year, according to the state Lottery Division. Profit was $493.4 million, an increase of 7.8 percent, the lottery said.

But Liebman warned that VLT revenues can't reverse the continuing decline of public interest in racing and fewer people betting. "Is it keeping tracks afloat? Yes. But is it finding new fans? No," said Liebman.

Hayward said NYRA needs VLTs to stay in business for the next couple of years. If an operator is picked for the Aqueduct project, the winning bidder would pay back the $25 million loan for the Saratoga meet and NYRA would return it over the long term, he said. A VLT operator could be picked by Aug. 3, Hayward said. …

[PaceAdvantage]

Originally Posted by KingChas

Does this mean I can't go to the Saratoga harness track this year,PA?

Who said anything about Saratoga harness? I was strictly referring to Aqueduct, Belmont & Saratoga Race Course.

[Indulto]

http://www.nyra.com/saratoga/stories/July232010b.shtml
NYRA Launches Stewards’ Decisions Communication Initiative
By Dan Silver July 23, 2010

Starting today ...

... the stewards’ race-day decisions involving the official order of finish will be communicated via the simulcast feed and will also be posted to NYRA.com.

Directly following any decision they make having to do with the official order of finish, including inquiries and objections, the stewards ...
... will provide an explanation of what happened and the reason for their decision. That information will then be communicated via the NYRA television feed and will be posted on the new Stewards’ Corner section on NYRA.com, located at the following link:

http://www.nyra.com/stewards/sar/index.shtml

“This new policy is a big step forward in providing transparency of the stewards’ decision making,” NYRA President and CEO Charles Hayward said. ...

... “We’re thrilled to expand the amount of information available to the wagering public,” NYSRWB Chairman John Sabini said. ...
... this new stewards’ communications initiative helps create an even more fan friendly environment at the NYRA tracks.”

“We are fully supportive of any efforts to improve communication to racing fans, and commend NYRA and the NYSRWB for their efforts in this regard,” said James L. Gagliano, president and chief operating officer of The Jockey Club. “This new initiative should serve as a model for other racing jurisdictions throughout the country.”

[Indulto]

http://cs.bloodhorse.com/blogs/vic-zast-saratoga-diary/archive/2010/07/31/money-goes-round.aspx
Money Goes 'Round
By Vic Zast 31 Jul 2010

Optimists will say that NYRA caught a break Thursday when Judge Barry D. Kramer, a former NBA basketball player, ruled that Aqueduct Entertainment Co. could not sue Lottery for excluding it from further consideration in the nine-year process to name a VLT operator for Aqueduct. But pessimists will point out that Gov. Exit and the two ranking Dumocrats – one from Brooklyn and the other from Manhattan - still will have to approve any forthcoming appointment. To date, that has been a challenging task.

Legal entanglements came into play on another front. Jeffrey Tucker, a New York horseman who used to lend the use of his Stonebridge Farm in Northumberland, NY to Equine Advocates for its annual dinner and auction, was named in a suit filed by the court appointed trustee overlooking liquidation of Bernie Madoff’s investment firm. The court appointed trustee is seeking more than $3.6 billion from Tucker and other defendants who he claims helped Madoff with his $65 billion Ponzi scheme.. …

http://www.saratogian.com/articles/2009/02/11/news/doc4992438d22380976620825.txt
Madoff victim eyes sale of horse farm
By PAUL POST February 11, 2009

The owner of an exclusive thoroughbred farm might be forced to sell the operation because of losses suffered in Bernard Madoff’s alleged $50 billion Ponzi scheme.

,,, Tucker is a founding partner of Fairfield Greenwich Group that invested $7.5 billion with Madoff, the most of any one entity and more than half its $14.1 billion in managed assets.

… Tucker has invested millions at Stonebridge in recent years. In July 2007, the farm unveiled a new 7/8-mile Polytrack, an artificial surface training track designed to reduce equine injuries. The main 188-acre farm off Stonebridge Road also has state-of-the-art barns, an indoor arena and sophisticated training equipment.

… Madoff was arrested on Dec. 11 after he allegedly confessed to conducting a large Ponzi scheme, named for a 1920s scam artist. His victims include numerous high-profile investors including New York Mets owner Fred Wilpon.

… Tucker was chairman of Empire Racing Associates, one of three firms that challenged New York Racing Association for the state’s latest racing franchise. …

http://www.bloodhorse.com/horse-racing/articles/33730/empire-racing-group-names-tucker-chairman
Empire Racing Group Names Tucker Chairman
By Tom Precious May 28, 2006

Jeffrey Tucker, a New York breeder, has been named chairman of the fledgling Empire Racing Associates, a group of horsemen and breeders trying to position itself to be among the holders of a new Thoroughbred racing franchise in New York.

Tucker, who owns Stonebridge Farm near Saratoga is a founding partner of Fairfield Greenwich Group, a Manhattan hedge fund company that manages over $9 billion in assets for its clients.

"He'got a lot of business savvy, a lot of deal-making savvy," said Jeff Perlee, executive director of ERA. "He's got that kind of perspective that racing in New York can really benefit from." …

[Indulto]

http://www.drf.com/news/new-york-lottery-approves-aqueduct-casino-bidder
New York Lottery approves Aqueduct casino bidder
By Matt Hegarty 08/04/2010

Genting New York, a subsidiary of a sprawling Malaysian company that also owns a large minority stake in a New York harness track, should receive state approval to operate a long-stalled casino at Aqueduct racetrack in Queens that could inject $60 million into the New York Thoroughbred industry each year, the New York Lottery said on Tuesday.

… The recommendation will have to be endorsed by Gov. David Paterson, who has already said that he will accept lottery’s recommendation, and by the leaders of the state’s Senate and General Assembly.

“We are reviewing the recommendation of the lottery,” said Sisa Moyo, a spokesperson for the Speaker of the Assembly, Rep. Sheldon Silver. Moyo said she could not provide a timetable for when Silver would make a decision about whether to endorse the recommendation.

… Genting is one of the largest companies in Malaysia, with dozens of gambling and hotel properties, along with investments in energy and agriculture. In 2009, the company paid $55 million for a 49 percent stake in Monticello Raceway, a New York harness track that also operates a casino. In addition, the company has provided financing for the construction of two other racetrack casino properties in New York, and many of its top officials had already been evaluated by the lottery for their suitability for casino licenses.

… Medenica said in his letter to Paterson that Genting’s proposal was “impressive on many levels.”

“Genting took nothing for granted – they respected the very rigorous selection process that we developed after the missteps of the past,” Medenica wrote. “They understood the business risks that a winning bidder is required to accept, and they have a clear and rational plan for navigating the complex construction and operating environment of New York City.”

http://saratogian.com/articles/2010/08/04/news/doc4c58451d741fa719984912.txt

Lottery officials recommend Genting New York as Aqueduct racino operator (with report)
By Paul Post August 04, 2010

… The project, if it becomes reality, would put New York Racing Association on solid financial ground for the first time in many years, securing the future of Saratoga racing, one of the most important elements of the local economy.

NYRA is slated to get 7 percent of revenues, and another 6.5 percent — increasing to 7.5 percent in three years — would go to purses. These figures combined, along with money going to breeders, could pump more than

$100 million per year into the state’s thoroughbred industry.

"It’s a game-changer," NYRA Vice Chairman James Heffernan said.

http://www.saratogian.com/articles/2010/08/03/news/doc4c5859d3652cb530311650.txt
New York Racing Association vice chairman: Pataki aide offered seat on NYRA board for $100K contribution
By PAUL POST August 03, 2010

A high-ranking New York Racing Association official dropped a political bombshell Tuesday morning, saying he was asked to pay a $100,000 campaign contribution to former Gov. George E. Pataki in return for a seat on the NYRA board.

But a Pataki spokesman, responding later in the day, said no such thing ever happened.

NYRA Vice Chairman James Heffernan spoke about the alleged solicitation — a criminal act — at Tuesday’s annual Saratoga Institute on Racing and Gaming Law at the Gideon Putnam Hotel. He said he wouldn’t pay for the seat, but was still appointed.

Asked by someone in the audience why he never reported the incident to authorities, Heffernan said, "I didn’t feel it was my responsibility."

Heffernan, an attorney and corporate restructuring expert, later joined the board and has been one of NYRA’s lead negotiators in seeing it through bankruptcy, winning a new franchise and dealing with the state’s selection of an Aqueduct gaming operator. He made the startling statement during a panel discussion about NYRA’s past, present and future financial condition.

… Heffernan, a longtime racing fan, said he first wrote to then-Gov. Pataki to offer his service, business and legal talents. Heffernan said a local political official set up a meeting between himself and a Pataki aide. After meeting, the aide offered a position on the NYRA board in return for a $100,000 contribution, Heffernan said.

Heffernan said he had previously attended a $1,000-a-plate dinner for Pataki, and that he told the Pataki aide he wouldn’t pay another $99,000 to join NYRA.

After declining he thought he would no longer be considered but was later offered a board appointment and accepted. In response to the audience question, Heffernan said he didn’t feel uncomfortable accepting the post.

After learning of the remarks, Pataki spokesman David Catalfamo sent The Saratogian an e-mail saying "Heffernan’s claims are absurd, shameful and untruthful — period."

Pataki now works for Chadbourne & Parke, an international law firm with offices in New York City.

In a related matter, also while on the Racing and Gaming Law panel, Heffernan said he believed Pataki deliberately stalled a deal NYRA had with MGM to run Aqueduct’s racino, so another party could take over New York racing. If the racino had opened earlier, he said, NYRA would have had no trouble winning a new racing franchise, because it would have been on firm financial ground. Instead, two other firms challenged NYRA for the racing contract, which NYRA eventually got anyway in September 2008.

Catalfamo refuted those allegations, too.

The state’s thoroughbred industry has suffered immensely because of the state’s failure to get Aqueduct’s proposed racino open. "NYRA never would have gone bankrupt," Heffernan said. "We could have done all kinds of capital improvements. Tens of millions of dollars were lost." …

http://www.bloodhorse.com/horse-racing/articles/58217/genting-ny-to-run-aqueduct-casino-project
Genting NY to Run Aqueduct Casino Project
By Tom Precious August 4, 2010

… In a 28-page report recommending Genting, the lottery agency said its pick for the franchise has proposed opening an initial VLT facility at the track, with 1,600 VLTs, within six months of signing a deal with the state. The remaining machines would be ready on two floors of gambling space six months after that, along with a 2,100-space parking garage and a new pedestrian bridge to a nearby subway station.

The report said Genting scored 95 out of 100 points in the evaluation process. It noted Genting New York is a subsidiary of Genting Malaysia Berhad, a public company with $1.6 billion cash on hand and a market capitalization of $5.25 billion. It is an affiliate of its parent Genting Group of Cos., which runs casino facilities in Malaysia, Singapore, the Philippines, and Great Britain.

Stefan Friedman, a Genting spokesman, said the company's selection will create 2,000 construction jobs and lead to more than $500 million in revenue annually for the state. …

… "We hope the Lottery’s recommendation will be endorsed by the legislature so we can immediately get to work creating jobs, preventing layoffs, and delivering more than $15 billion in economic benefits to New York over the next 30 years," Friedman said.

… After the lottery agency recently tossed out two of the three bidding groups left in the process, Genting’s selection was all but assured. Three of Genting New York’s major principles have already been licensed by the lottery to be partial owners of Monticello Raceway's VLT casino. Besides Monticello, Genting helped finance Indian-owned casinos in Niagara Falls, N.Y., and Connecticut.

The decision comes less than a week after Aqueduct Entertainment Co., which won, and then lost, a previous bidding round for Aqueduct, had its court case to re-install its bid rejected by a state judge. The company is appealing, so it is uncertain if that could delay the Genting situation.

… Medenica said Genting is experienced and its plan “reflects a deep and insightful understanding of the opportunity and challenges of Aqueduct.” He said the company also understands the project’s business risks, and “they are highly sensitive to the community issues, labor requirements, and social concerns that a project of such scope encompasses.”

The lottery director said other bidders rejected earlier “made the fatal assumption that the process was still open to maneuvering and negotiation.”

Medenica said Genting also passed an “exhaustive” vetting process of its principles and investors. …

http://www.timesunion.com/local/article/Lottery-Division-recommends-Aqueduct-developer-600993.php
Lottery OKs racino operator
By JAMES M. ODATO August 4, 2010

…Assemblywoman Audrey Pheffer, D-Queens, said she hopes the deal gets done quickly although she was disappointed that Genting plans to open the facility in phases, with about 1,600 machines after six months after signing an agreement and a completed project within 18 months. The company won over the community in a presentation and has committed to set aside one percent of profits for local community investments, she said.

"They're a very impressive organization," NYRA President Charles Hayward. He said the company has a great plan.

… John Sabini the head of the state Racing and Wagering Board, said the board still has an open investigation of an arm of Genting related to a complaint involving Empire Resorts' Monticello Raceway's track and racino, which is majority-owned by an arm of the multinational Genting group.

Sabini said that investigation was "wrapping up ... but if the (Aqueduct) deal goes down it's a good thing for racing in the state of New York." …

[Indulto]

http://www.bloodhorse.com/horse-racing/articles/58435/paterson-legislators-sign-aqueduct-vlt-pact?source=rss
Paterson, Legislators Sign Aqueduct VLT Pact
By Tom Precious August 17, 2010

It has taken three governors four different tries, but Gov. David Paterson and legislative leaders made it official Aug. 17: Genting New York will be the operator of the Aqueduct video lottery terminal casino.

… But while the approval by Paterson, Assembly Speaker Sheldon Silver, and Senate Democratic Conference Leader John Sampson appears to seal it for Genting, two last stops along the way are needed: Approvals from state Comptroller Thomas DiNapoli and Attorney General Andrew Cuomo.

… “Genting, a world-renowned and experienced gaming company, presented a thoughtful and comprehensive proposal for the VLT facility at Aqueduct,” Silver said in a statement. “We look forward to the development of a world-class gaming facility that will maximize revenue for the state of New York, create thousands of jobs, and greatly enhance economic development in the surrounding community for many years to come.”

http://www.timesunion.com/local/article/Will-deal-get-racing-back-on-track-618701.php
Will deal get racing back on track?
By DENNIS YUSKO August 17, 2010

A deal to subsidize horse racing in New York through proceeds from a nearly approved casino at Aqueduct Race Track

has horsemen and Saratogians practically skipping down Broadway.

… Malaysian resort and casino operator Genting New York LLC wants to have at least some of the 4,500 video slot machines in operation at the New York City track by April, a plan that is backed by Gov. David Paterson and the state Legislature.

It now requires only the signatures of the state attorney general and comptroller.

So it isn’t the “three men in a room” anymore? This is starting to sound a lot like Speaker Silver’s previous approval of AEG knowing the principals couldn’t withstand scrutiny.

How likely is approval by Cuomo or Di Hapoli until after the elections?

… NYRA would get 7 percent of the gross gambling revenue generated by the machines, and an additional 6.5 percent would be dedicated to the thoroughbred industry for race purses at NYRA tracks. If 4,500 slots at Aqueduct made $275 per machine, per day -- a conservative estimate -- NYRA would get $31.6 million a year for track improvements and operating costs, and purses would jump by $29.3 million a year.

But no takeout relief for customers.

… Final project approvals could come in days or weeks, though concerns have been raised about Genting's business dealings. Moving the project forward would cap nine years of off-and-on negotiations that left horsemen frustrated and racing teetering on insolvency.

… Under the Aqueduct deal, Genting would pay an upfront fee of $380 million to the state and assume responsibility for the $25 million that the state loaned NYRA. Building could start at Aqueduct after the fee is paid. The racing association would use money made by slots to pay back the $25 million to Genting. …

Choosing a bidder from a field of one has the odor of elections in the old Soviet Union

Cuomo could still decide the deal should be approved by the next governor, attorney general, Comptroller, and legislature with specific voter support for their stated positions instead of endorsing a decision by the current dysfunctional Governor and Senate.

If he approves prematurely, and Genting actually has a sleleton in its closet, then he can wave good bye to the Governor's office.

VLTs at Belmont (and not at Aqueduct) could be more lucrative long-term for both NYRA and the State, and would allow them to close Aqueduct sooner if slots don’t prove to be the savior that residents dancing in the streets of Saratoga seem to think they are.

[Indulto]

http://www.nytimes.com/2010/08/29/sports/29otb.html
OTB Executive Offers Turnaround Plan
BY BILL FINLEY August 28, 2010[QUOTE]… if his proposal was rejected by creditors, union officials or state lawmakers, he would close the corporation or attempt to void the existing union contracts and slash wages.

That Rayburn wants to re-emphasize neighborhood betting parlors goes against the conventional wisdom in the horse racing industry …

“The issue is, what are your assets and what do you focus on?” he said. “The reality is our best asset is our customers. They come in every day, and it is more than a gambling operation for them. It is a social club, and they provide us with a significant piece of handle.”

… Rayburn said the biggest drain on OTB’s bottom line was its account wagering business, which allows customers to bet over the phone or on the Internet. Similar operations at other tracks and off-track betting operations are generally profitable, but Rayburn said New York’s OTB was hurt by high labor costs and other inefficiencies that the racetracks would not face.

… Should the tracks take over OTB’s account wagering business, Rayburn said most of the 230 people now working for the corporation in that area would be laid off, as would some 170 other OTB workers.

… “The mistakes made over the years is that there has never been a capital reserve, so there has never been reinvestment in either physical plants, technology or people. What I am telling people is that if we can retain a reasonable capital reserve, we can invest in these things, technology, locations and new prototypes.”

.. “What I have tried to make clear to the constituents I have dealt with is that people should not sit back and expect the state will bail out OTB to keep OTB in business,” he said. “There might be people out there who still harbor those thoughts. It is foolish to think that we wouldn’t liquidate if we can’t get one of these plans to become a reality.”[QUOTE]http://saratogian.com/articles/2010/08/28/news/doc4c787600bbf03039286732.txt
NYRA would take over New York City OTB's account wagering system under proposed plan
By PAUL POST August 28, 2010

… The tracks would also sacrifice $32 million in “give-backs” to OTB, which has debts totaling $95 million and owes NYRA — its second largest creditor — more than $20 million alone.

Bankrupt New York City OTB is under a hard deadline to get the plan worked out by Tuesday so that it can opt into an early state retirement incentive program. But unions are objecting to key points such as elimination of Sunday double-time pay, while demanding that a set number of jobs be kept regardless of handle and revenue.

… If a so-called Plan A isn’t reached, OTB has two options — it could seek to sever its union contracts in bankruptcy court, certain to trigger litigation, or liquidate the business, which handles more than

$750 million worth of wagers per year. Rayburn said he doesn’t believe NYRA or the state’s five other OTBs would be able to recoup all that income, much of which might go out of state.

“Frankly, liquidating the business is a bad outcome for the racing industry in New York,” Rayburn said. “Massive loss of handle is going to have some downstream effects.”

… Rayburn said OTB’s account wagering system has an estimated $20 million value, but would satisfy a $65 million debt to the tracks. The difference represents what OTB is able to pay creditors on the dollar, he said.

… NYRA has long lobbied for a merging of some operations between the tracks and all off-track betting entities, which it says would cut costs and eliminate duplication of services. Shared marketing programs and tote contracts have also been called for. …

http://www.nydailynews.com/ny_local/2010/08/28/2010-08-28_bankrupt_otb_plays_hardball_threatens_to_break_ union_deal.html
Bankrupt OTB threatens to break union contract if concessions aren't made
BY Kenneth Lovett August 28th 2010

…

An agreement by Tuesday would allow OTB to opt into a state early-retirement program.

OTB's unions have opposed two of the key givebacks sought by management.

The unions are refusing efforts to do away with double time on Sundays, even though it's part of the regular workweek. And they want per-diem workers who don't get benefits to be fired before staffers, who get benefits.

District Council 37 also wants a written commitment to keep minimum staffing levels. Talks with the unions and creditors are continuing, he said.

If no deal is reached, breaking the union contract while still seeking a deal with creditors is Plan B, Rayburn said. Breaking the contract would allow them to reduce worker salaries and benefits unilaterally.

The third option would be to close down OTB.

… DC 37 President Leonard Allen said there are some things the union simply can't agree to.

"You can't give me a gun and tell me to shoot myself," he said. "You might shoot me, but you can't tell me to pull the trigger and that's what he wants us to do." …

http://www.nypost.com/p/news/local/otb_honcho_saddled_with_tubborn_w4gJvkvrr4k9356tBz ltEM
OTB honcho saddled with '$tubborn' union
By DAVID SEIFMAN August 29, 2010

… Greg Rayburn told reporters in a conference call that "pretty much every one" of OTB's creditors has agreed to givebacks to keep the city's only legal bookie afloat -- except for Local 2021, which represents more than 1,000 employees.

… If he can't reach a deal by Tuesday, when a state early-retirement offer ends, Rayburn said he's prepared to terminate the union's contract.

"It's doable in bankruptcy," he said. "It's a tool that's available. It's not one we want to use."

Union president Lenny Allen … said the elimination of Sunday overtime would cut the salaries of his members from an average of $40,000 to less than $32,000.

He pointed out that he had an agreement with previous OTB chairman Sandy Frucher that guaranteed a minimum number of union jobs after the restructuring is complete.

Rayburn countered that it's not going to happen under his watch.

… Rayburn also wants the right to retain per diem workers while he's laying off their full-time counterparts, who collect costly fringe benefits, something that would be difficult for any union to accept.

Rayburn estimated OTB's debts at $95 million, with two-thirds owed to racetracks. He said the New York Racing Association and Yonkers Raceway were willing to take over OTB's phone and Internet betting operations, which he valued at $20 million, as a settlement, and are also prepared to surrender about $32 million a year in revenue from OTB.

Rayburn put the union's givebacks at $16 million a year. But Allen said the racing industry's savings would last for only two years, and he questioned why the phone-betting business wasn't appraised before being peddled to creditors.

The state Legislature, which has proven sympathetic to OTB workers in the past, would have to approve six or seven key elements of Rayburn's plan. …

http://www.bloodhorse.com/horse-racing/articles/58610/nycotb-could-shed-about-100-million-in-debt
NYCOTB Could Shed About $100 Million in Debt
By Eric Mitchell August 28, 2010

Some of New York City Off-Track Betting Corp. creditors are poised to forgive nearly $100 million in debt.

… The seven creditors are the New York Racing Association, Churchill Downs, Inc., Paramount Leasehold, L.P., Finger Lakes Racing Association, Empire Resorts/Monticello Raceway, Yonkers Racing Corp., and the public employee labor union District Council 37/Local 2021.

… “If an agreement is reached, then what would be forgiven is what was owed to these seven creditors only from the time NYCOTB filed for bankruptcy through July 31,” said Dwayne Andrews, a principle in the government relations group for Blank Rome. “We can’t go into specifics because it is still being negotiated. We are closer to an agreement.”

… Besides the union concessions, Rayburn’s plan for restoring the financial health of NYCOTB includes having other creditors settle their claims for undisclosed amounts, reduce payments to racetracks by about $32 million annually, and have the state drop $10 million of claims. He also wants lawmakers in Albany to change state law but didn’t say what changes he would be seeking. …

[Indulto]

http://www.saratogian.com/articles/2010/10/07/news/doc4cae3a198f6a7483656972.txt
NYC OTB union approves deal to slash 550 jobs, give control of account wagering to racetracks
By PAUL POST October 07, 2010

New York City Off Track Betting Corp.’s largest union has approved a deal that would slash more than 500 jobs and see racetracks take over the firm’s account wagering operations.

… Some elements of the reorganization plan, such as changing statutory payments, would be subject to legislative approval. It’s possible the deal could be worked out in the new few weeks.

… However, the biggest obstacle might be harness track owners, led by high-powered New York businessman Jeff Gural, who want an added one percent take on revenue from video gaming be rescinded under the deal.

… Harness tracks also want more free-play vouchers to be allowed at their racinos, a program that’s proven successful at Gural’s Tioga Downs.

… It’s believed that a combination of thoroughbred and harness racetracks would hire an outside firm to run OTB’s account wagering operations. The tracks would own the system on a pro-rated basis, based on the amount of revenue they generate. …

http://www.drf.com/news/union-votes-favor-new-york-otb-deal
Union votes in favor of New York OTB deal
By Matt Hegarty 10/07/2010

Members of the union representing the majority of New York City Off-Track Betting Corporation’s 1,300 workers have approved an agreement that will provide severance payments to an estimated 550 employees who will be laid off under a proposed reorganization plan, according to the union.

Voting was conducted on the agreement on Wednesday, with 271 members voting to accept the plan and 139 voting to reject it. Under the plan, full-time workers will receive $12,000 in severance pay if they agree to leave the company. ...

[Rico8812]

The problem for Gural is he is much smarter than the people he's going up against. But they have the power.

[Indulto]

http://www.saratogian.com/articles/2010/10/28/news/doc4cc8d85a5659b019999250.txt
Paterson calls Legislature back to work on reorganizing the bankrupt New York City Off Track Betting Corporation
By PAUL POST October 28, 2010

Gov. David Paterson is calling the Legislature back to a special session in November to work on reorganizing the bankrupt New York City Off Track Betting Corporation.

OTB has reached a tentative agreement with its creditors’ committee, including New York Racing Association, but several elements of the plan require legislative approval such as reduced payments to racetracks, along with changes in dark day and hold harmless payments.

… One of the major pieces of the restructuring plan calls for racetracks, including NYRA, to take over OTB’s telephone and Internet wagering systems to satisfy OTB’s debts to the tracks. OTB’s phone and Internet platforms handle about $150 million worth of bets annually. The tracks, collectively, are expected to hire an outside gaming firm to run these systems that they would own on a pro-rated basis, based on the revenue each track produces.

"I think it’ll all get worked out," said John Van Lindt, a former OTB vice president and former New York State Racing and Wagering Board commissioner. "The big question is, what happens to what remains at OTB?"

… the most profitable shops are in Brooklyn and Queens, and will likely suffer a major blow when Aqueduct’s racino starts up next spring.

… The big concern, if the firm folds, is that money now wagered in New York would go to New Jersey and out-of-state account deposit wagering firms such as Youbet and TVG. "It will go to competitors who are circling New York City like vultures," he said.

Assembly racing committee Chairman Gary Pretlow, D-Yonkers, said legislators are still reviewing OTB President Greg Rayburn’s restructuring plan. Pretlow said he has serious reservations about some proposals, such as guaranteeing health benefits for OTB retirees.

"We can’t do that," he said. "That’s something no other bargaining unit in the state has. That’s problematic in itself."

Rayburn says OTB’s restructuring must be finalized by the end of this year, or the firm will run out of cash and stop operating. The special legislative session is scheduled to begin on Monday, Nov. 15, giving lawmakers roughly six weeks to solve a complicated problem that officials at all levels have spent years trying to figure out.

http://www.nypost.com/p/news/opinion...GbHde3X3De15aU
Bookies of the living dead
October 25, 2010

As Gov. Paterson last week presented yet another plan to save the long-beleaugered Off-Track Betting Corp.,

Mayor Bloomber exposed a $200 million deal-breaker that should put the final nail in OTB's coffin.

… But a rightly angry Mayor Mike revealed on Thursday that the plan could put the cash-strapped city on the hook for as much as $200 million in OTB retiree benefits.

That would seem to breach a deal between the city and state.

Three years ago, Hizzoner threatened to close the city-run OTB, rather than keep on covering its losses under a lopsided revenue-sharing scheme with Albany.

Paterson later agreed to take over the operation -- and his office said the state would "assume both [its] assets and the liabilities."

Including, presumably, retiree benefits. …

http://saratogian.com/articles/2010/10/28/news/doc4cc9d7e437595993897993.txt
Work begins on Aqueduct racino, thoroughbred racing and breeding industries already feeling impact
By PAUL POST October 28, 2010

… The racino, called Resorts World New York, will be run by Genting New York LLC, an arm of a huge Malaysia-based casino company with worldwide holdings. It already runs several high-profile Asian resorts and is the United Kingdom’s largest casino operator. The firm recently gave the state a $380 million upfront licensing payment and has agreed to cover a $25 million loan to keep NYRA operating until VLTs come on line.

Aqueduct is the company’s first entry into the U.S. gaming market.

"This is one of the proudest days in the history of the Genting organization," Chairman K.T. Lim said.

Gov. David Paterson joined him for groundbreaking ceremonies.

"The addition of the Resorts World New York casino at the historic Aqueduct Race Track will create employment for thousands (2,100) of New Yorkers, help revitalize the state’s racing industry and serve as a powerful generator of state revenue," Paterson said.

… Genting says it will try to highlight Aqueduct’s racing program, rather than having the racino overshadow it, which has happened at many racetrack gaming facilities. Racing’s popularity is on the rise in Asia and Great Britain, where Genting’s other venues are, and it hopes to attract world travelers to Aqueduct as they pass through John F. Kennedy International Airport, bordering the Queens track.

"Every indication is that Genting is committed to have the VLTs operational in or before May and, more importantly, Genting is committed to building a first-class facility that will increase the public’s interest in thoroughbred racing," said Barry Ostrager, New York Thoroughbred Breeders Inc. president. " The positive financial impact the Genting VLT facility will have on thoroughbred racing and breeding in New York will be enormous. Everyone involved in thoroughbred racing and breeding is thrilled about Thursday’s groundbreaking."

[samyn on the green]

For ten years the pols worked the Aqueduct casino for profit It was up for bid about 5 times - we lost count- with each bid drawing contributions and backdoor kickbacks This spanned Pataki to now. It is funny that the news media has finally grabbed a hold of the story to discredit a small time state senator in Westchester where I live. The real big guns are getting away with murder. People like Spitzer should be in jail for what they did to people like Brualio Baeza; ruining someones life so they can profit from this casino. While all this was going on Cuomo let it all happen. Now the idiots will vote for Cuomo in droves because the TV said to do so. I guess now that all the free airplane rides and checks are cashed it is okay to talk about this now.

http://www.lohud.com/article/20101023/N ... ct-scandal

[badcompany]

"Racing’s popularity is on the rise in Asia and Great Britain, where Genting’s other venues are, and it hopes to attract world travelers to Aqueduct as they pass through John F. Kennedy International Airport, bordering the Queens track."

I know England has low takeouts. Anyone know the takeouts at Asian tracks?

[Spendabuck85]

Here we go again!

From Albany Times Union:
Genting New York LLC, which won the bid to build a racino in Queens, has joined the Oneida Indian Nation in protesting a proposed Paterson administration deal for a tribal casino in the Catskills.

“This decision, and the process that accompanied it, significantly impairs our ability to deliver tax revenue to the state and it greatly reduces our ability to move forward with a planned $1.3 billion dollar investment to build a world class resort,” said Stefan Friedman, spokesman for Gentings’s planned Resorts World New York at the Aqueduct racetrack. “We went through a rigorous, comprehensive review and would expect that same level of scrutiny to apply to everyone across the board.”
http://m.timesunion.com/tu/db_39924/...l=true#display

[Indulto]

http://espn.go.com/horse-racing/story/_/id/7494384/future-bright-new-york-racing

Future bright for New York racing

By Paul Moran January 23, 2012

… Living well on an abundance of crumbs is all too easy. The task of preserving racing's place and raising its profile on this ever changing landscape falls to the New York Racing Association. With prosperity comes the duty to promote aggressively and creatively what, if it is not already, will inevitably become the nation's best racing product, to restore and preserve the long-neglected Belmont facility and bolster its most valuable franchise -- Saratoga. A nonprofit entity has no excuse to not spend every available dollar on capital improvement and promotion. ...

… The NYRA must not stand impassively while New York becomes a larger version of Pennsylvania or West Virginia. The opportunity is at hand to foster a new age of racing in New York, not as gilded perhaps as it once may have been, but nevertheless beyond anything seen here -- or anywhere in America -- in many decades.

Hopefully promotion includes lowering takeout.