Race to save OTB

The city may scratch plans to close OTB parlors and layoff 1,200 to 1,500 employees thanks to a sweetened payment agreement offered Albany.
Mayor Michael 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 June 16, saying, “The only way you can get Albany to function is to create a crisis.”
Employees reportedly received letters dated Wednesday, May 30 signed by OTB president Raymond Casey telling them, “Your employment will be terminated as of close of business on June 15, 2008.”
Assemblymember Gary Pretlow, Chair of the Racing and Wagering Committee told The Queens Courier on Thursday, June 5 that the latest offer contains “virtually everything they asked for,” and expressed confidence that the city would accept the offer as soon as Friday.
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 moves operating expenses “above the line,” so that the city could not lose money.
“OTB is basically a retailer of a product of [the state racing industry] so they do have to provide them with compensation,” he said, pointing out that New York City actually receives $12 million “above the line” now. “When [the mayor] talks about how much the city is losing, he doesn’t count that,” Pretlow said, adding, “if [Mayor Bloomberg] doesn’t accept this offer, it would only be because he doesn’t want OTB at all.”
When informed of Pretlow’s remarks, Leonard Allen, President of DC37 local 2021, the union representing the OTB workers heaved a sigh of relief.
“Really? I’ve been in meetings and you’re the first to tell me. That’s great news, and I hope it really happens,” Allen said, “My members will be really happy to hear it – they’ve been hoping that they’d solve this problem.”