Should NYRA Rewards account be emptied???

[SansuiSC]

Obviously the money is not insured. If they close the plants, although it says nothing about operations (online simulcasting), who knows how long your money would be tied up if they cease operations.

I know it's a chess game with the state and being discussed generally but this is the ADW part of the equation that needs to be looked at.

Should NYRA Rewards account be emptied? Or just keep a low balance that you are willing to part with if they freeze accounts.



http://www.nyra.com/belmont/stories/May212010.shtml


Contact: Dan Silver | May 21, 2010




"The New York Racing Association, Inc. (NYRA) announced today that it has provided notice to its employees that it expects to cease racing operations and begin the implementation of plant closures on Wednesday, June 9 at Belmont Park, Saratoga Race Course, and Aqueduct Racetrack. The notices, pursuant to the requirements of the Federal and New York State Workers Adjustment and Retraining Notification Acts (jointly referred to as the WARN Acts), were sent to more than 1,400 NYRA employees on Thursday, May 20 and indicated that layoffs can be expected to begin as early as June 9. Meanwhile, NYRA continues to pursue solutions with the State of New York that may avert the cessation of operations.

Founded in 1955, and franchised to run thoroughbred racing at New York’s three major tracks through 2033, NYRA boasts a lineage that actually stretches back almost 150 years. NYRA tracks are the cornerstone of the state’s thoroughbred business which contributes more than $2 billion annually to New York State’s urban, suburban and rural economy. In 2009, more than 1.6 million people attended the live races at NYRA tracks. Factoring nationwide off-track wagering, the average daily betting handle on NYRA races alone totals more than $9.3 million every race day. NYRA has a vast network of websites, including www.nyra.com, www.belmontstakes.com, and www.nyragroupsales.com."

[Robert Goren]

Get out while you can. As a loser in the JC Whitney bankruptcy a number of years ago, I can tell you don't want to be anywhere near a company going under. JMO

[OTM Al]

I won't tell you what to do with your money, but my understanding is that they do not mingle account holders funds with operating funds.

[Jeff P]

If you have a large balance in your account... and by "large" I mean an amout large enough that it is meaningful to you... or would cause you hardship if you were denied access to it... then NOW is the time to make a withdrawal.

Q. Do I know if NYRA will actually shut down?
A. No.

Q. If NYRA shuts down, do I know whether or not money in NYRA accounts will be held up?
A. Again, no.

However, if I am not mistaken NYRA (and MEC) both have track records that are not good when it comes to pool distribution money.

NYRA has in the past filed for bankruptcy protection from its creditors AND classified pool distribution money the same as if it were owed to unsecured creditors - effectively tying that money up as part of its bankruptcy case - causing players (If I am not mistaken some of those players post here at PA.) significant delays in getting paid.

MEC recently did the same thing (according to CHRB meeting transcripts) with pool money owed tracks and wagering outlets in California.

If you have a large balance, and you are going to err... NOW would be the time to err on the side of caution.


-jp

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[Jeff P]

Related Thoroughbred Times story to my above post...

Off-track outlet sues NYRA over settlement payout dispute
http://www.thoroughbredtimes.com/nat...t-dispute.aspx


Related CHRB Meeting agenda item to my above post...

http://chrb.ca.gov/board_meeting_age...apr_agenda.pdf

13. Discussion and action by the Board regarding an update from Magna Entertainment Corporation concerning its bankruptcy filing, racing operation and the status of statutory funds that may still be owed money for pre and post bankruptcy petition debts.

-jp

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[DJofSD]

NYRA has in the past filed for bankruptcy protection from its creditors AND classified pool distribution money the same as if it were owed to unsecured creditors - effectively tying that money up as part of its bankruptcy case - causing players (If I am not mistaken some of those players post here at PA.) significant delays in getting paid.

I would take that to mean, as an unsecured creditor, a person would be at the end of the line for any consideration when it came time to be paid off.

I would also wonder if all of those funds wouldn't be frozen until the determination is made how the business is to operate going forward, if at all.

[SansuiSC]

Originally Posted by OTM Al

I won't tell you what to do with your money, but my understanding is that they do not mingle account holders funds with operating funds.

Originally Posted by Jeff P

If you have a large balance in your account... and by "large" I mean an amout large enough that it is meaningful to you... or would cause you hardship if you were denied access to it... then NOW is the time to make a withdrawal.

Q. Do I know if NYRA will actually shut down?
A. No.

Q. If NYRA shuts down, do I know whether or not money in NYRA accounts will be held up?
A. Again, no.

With the uncertainties here, I'll keep a balance that I'm willing to part with if they freeze accounts which means taking a chunk out now and as the days draw closer empty it daily on track unless something earth shattering happens between now and D-day.

Even if they do not mingle account holders funds with operating funds, I'm not going to put myself in a compromising position.

[Rutgers]

Keep in mind, this is not a bankrupcty.

NYRA has just announce a plan to cease racing operations and then to close down the plants. Which I'm guessing are the greatest costs to NYRA.

The notice as posted on this thread did not say whether or not the NYRA One account wagering will continue or not.

[Indulto]

Originally Posted by Jeff P

... NYRA has in the past filed for bankruptcy protection from its creditors AND classified pool distribution money the same as if it were owed to unsecured creditors - effectively tying that money up as part of its bankruptcy case - causing players (If I am not mistaken some of those players post here at PA.) significant delays in getting paid.

MEC recently did the same thing (according to CHRB meeting transcripts) with pool money owed tracks and wagering outlets in California.

If you have a large balance, and you are going to err... NOW would be the time to err on the side of caution. ...

Sounds like good advice although NYRA did eventually pay up in the case to which you referred.

Maybe if enough NYRA and OTB account holders withdrew all but a skeleton balance, it would prompt the state racing and wagering board and the legislature to guarantee those funds. What guarantees do TS, Ubet, Xbet, and TVG provide?

[OTM Al]

I brought this thread to the attention of some people I know who know the situation, shall we say, very well, and they have responded to me to confirm that all funds in NYRA One accounts are guaranteed.

[Indulto]

Originally Posted by OTM Al

I brought this thread to the attention of some people I know who know the situation, shall we say, very well, and they have responded to me to confirm that all funds in NYRA One accounts are guaranteed.

OA,
Did they mean "guaranteed" the way the state guaranteed NYRA's income from vlt's?

I think most would be happier with published documents from appropriate authorities clearly defining how funds are protected and when and how they would be returned in all foreseeable circumstances. I'd be surprised if anyone at NYRA has sufficient authority for that, but it wouldn't surprise me if your contacts went beyond the Ha-Ha team.

Don't the current economic climate and political/legislative efforts to rein in Wall Street suggest a need for greater protection for wagering account customers?

[Stillriledup]

Good idea to be safe rather than sorry. You can always re-deposit the money when the smoke clears.

[Dave Schwartz]

This is really a devastating state of affairs.

My sincere condolences to all of our New York players, especially those who live in Saratoga.

Aside from the obvious, this shows that the end really can come.

[Jeff P]

This state of affairs really IS a shame.

But I'm not at all surprised.

Last October Equibase released their Scratches and Changes Today system. The purpose of the new system was to create a single place on the web where players could go to get accurate scratches and changes in real time. The "real time" element comes from having Equibase's chart callers key in new scratches and changes as they are announced by the track announcer over the track's public address system.

With two notable exceptions, this program has been a success - scratches and changes have been consistently delivered in accordance with system design.

Anyone care to guess the name of the most recognizeable racing association that decided not to participate in the program?

NYRA.

One of the requirements for making the system work is having somebody at the track level perform 10 minutes of data entry each day to key the early scratches and changes into the system so that they can appear at Equibase.com. Use of the system is free. To participate, the only thing a track has to do is provide somebody at the track level to do 10 minutes of data entry each day. Equibase will even train the track employee... again, at no cost to the track.

Since the system's inception last October NYRA has steadfastly refused to have somebody at the track level key early scratches and changes into the system.

NYRA's decision to be the only racing association to purposely NOT participate in the Equibase program speaks volumes.

Sadly I'm not at all surprised NYRA finds itself mired in the middle of this mess.


-jp

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[DJofSD]

Jeff,

In my industry, that activity (or lack thereof) is commonly referred to as the mushroom theory -- keep them in the dark and feed them s***.