City OTB Board votes 'to close'..

[oilertige]

I'm missing something here???

"Bloomberg, who controls the corporation's five-member board, said in November that the city is facing a $2.7 billion deficit in the coming fiscal year and couldn't afford to inject more money into OTB. He asked Chairman David Cornstein to draft a plan to shut it down.

OTB, which collects more than $1 billion in bets a year, is required by legislative mandates to compensate the racing industry based on gross revenue. In 2006, the business had a $125 million operating profit, yet had to pay the state's racing industry $98 million. City Comptroller William Thompson said OTB might run out of money by June."

Okay, so according to my simple calculations, after paying the racing industry, there is still $27 million on the table . . . not enough to cover overhead??? Why the need to inject more money into OTB? It would seem to be a self supporting operation??? By doing away with this business, it would appear that the city is losing a revenue making opportunity to help their coffers?