City OTB Board votes 'to close'..

[MisterB]

Won't this effect some of the cash cow for the NYS Breeders Bonuses?

[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?

[mes5107]

Originally Posted by oilertige

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?

From what I've read, there are approximately 1,500 employees of NYC OTB. That's an average salary of $18K per year if they take all of the leftover revenue. Of course, 1,500 employees seems like quite a lot for just over 60 branches.

I guess the question is: Does this create an opening for NYRA to start up OTB at some point in the future?

[MaTH716]

Originally Posted by mes5107

From what I've read, there are approximately 1,500 employees of NYC OTB. That's an average salary of $18K per year if they take all of the leftover revenue. Of course, 1,500 employees seems like quite a lot for just over 60 branches.
I guess the question is: Does this create an opening for NYRA to start up OTB at some point in the future?

Many of those people work in the phone betting area. The office is in Times Square.