OTB hopes fading at finish line

The city will follow through with plans to close OTB parlors and layoff 1,200 to 1,500 employees despite a home stretch “sweetened” payment agreement from Albany, according to Mayor Michael Bloomberg.
Bloomberg has insisted for months that the city would not continue to subsidize the operation of legal betting parlors, and OTB would be out of business on Monday, June 16.
Employees reportedly received letters dated Wednesday, May 30 signed by OTB president Raymond Casey telling them, “Your employment will be terminated as of the close of business on June 15, 2008.”
Assemblymember Gary Pretlow, Chair of the Racing and Wagering Committee told The Courier on Thursday, June 5 that the latest offer contains “virtually everything they asked for,” and expressed confidence that the city would accept.
The Westchester lawmaker’s confidence was undone on Tuesday, June 10, during a ceremony at the unveiling of the NY football Giants Super Bowl plaque on the Canyon of Heroes in downtown Manhattan.
“I don’t want to be a pessimist but at the moment our plans are that Sunday will be the last day that OTB is open in New York City,” Bloomberg responded to a question.
Expressing regret, because “it’s some place that a lot of people like to go and get entertainment and bet on the horses,” Bloomberg insisted that even with the new offer, OTB would still pose “a loss for New York City.”
According to reports, in 2006, the business had a $125 million operating profit, yet had to pay the state’s racing industry $98 million.
Up until now, the operating costs of the city’s betting operation were “below the line,” meaning paid after the state-mandated payments that Bloomberg has claimed to be “120 percent of the profits,” and left the city with “a $14 million budget hole.”
According to Pretlow, the new proposal moved operating expenses “above the line,” so that the city could not lose money.
“We are not going to live with what’s been offered to us so far - short term solutions where they’re just trying to outwait us and leave a problem for my successor,” Bloomberg said.
The mayor pointedly declared, “New York City is not going to lay off one cop, one firefighter or one teacher so that we can support a bookie operation, period, end of story. This Sunday’s the last day.”
A moment later, however, Bloomberg suggested, “If the State wants to take it over, fine, happy to let them do it.” Then he observed, “They don’t seem to want to because the liabilities make this worth less than zero.”
Immediately following these remarks, however, the billionaire businessman left the door open to an at-the-wire reprieve.
“We will continue to run it if they change the formula in a way [that offers] a long term solution,” he said.