Off-Track Betting Bankrupt, Says Horse Racing's Share Too High

New York's Off beam Betting Corporation filed for bankruptcy protection, saying declining revenues made splitting with its state, city, and racing industry partners by gross gambling revenue percentages unfair.

As losses have mounted during the last several years, New York's Off-Track Betting Corporation found itself forced into Chapter 9 bankruptcy this week. The corporate says distribution of revenues by percentage of gross have didn't allow for operating costs, and asks that the brand new York legislature lower its commitment to horse racing.

Over the last five years, OTB says it has lost $45 million at its 68 betting outlets. Declining track wagering has caused gross percentages to sink below the set operating costs for the corporation.

Lawmakers can be asked to switch the distribution of gambling revenue, during which the state, city, and the pony racing industry are granted set percentages of gross gaming revenue.

"NYC OTB generates hundreds of millions of bucks annually for the region, but it surely have been hobbled by statutes that make it impossible for the corporation to hide its own operating expenses," said Chairman Michael Frucher of OTB. "We just require the commonsense legislative changes as a way to allow this crucial state asset to grow."

Among plans Frucher has to save lots of OTB include the drawing of $250 million in financing to pay debts, fund operations and finance development. Figures show that OTB has delivered $2.2 billion for horse racing, $1.4 billion for brand spanking new York City, and $600 million for the state since beginning operation in 1971.

Published on December 7, 2009 by A.J.Maldonado

Read More... [Source: Horse Racing News]