NYC OTB union approves deal; Slashes 550 jobs, gives account wagering to NYRA/Harness
By PAUL POST
The Saratogian
SARATOGA SPRINGS — 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.
The steps are part of a reorganization plan developed by OTB President and CEO Greg Rayburn to put the state-owned, bankrupt firm on a course toward profitability. Racetracks would also take a $30 million reduction in state-mandated disbursements from New York City OTB. However, any deal is subject to approval by OTB’s creditors’ committee and the bankruptcy court. New York Racing Association is OTB’s second largest creditor, owed more than $20 million alone.
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led by high-powered New York businessman Jeff Gural, who want an added one percent take on revenue from video gaming be rescinded under the deal.