NYC OTB facing closure after Senate rejects rescue
December 8, 2010ALBANY, N.Y. (AP) - Off-track betting sites in New York are facing closure after the state Senate rejected a plan to rescue the operations that bring in nearly $1 billion a year in wagers.
OTB chairman Lawrence Schwartz had proposed a state rescue plan for the New York City Off-Track Betting Corp., which employs about 1,000 workers. The Assembly passed the measure last week. The Senate vote Tuesday was 29-21 in favor of the plan, but 32 votes were needed for passage.
Schwartz, who also works as chief of staff to Gov. David Paterson, says the OTB is out of money and out of business. The doors were expected to close for good at midnight Wednesday.
Although New York City OTB collects nearly $1 billion a year in bets, competition from casinos and other gambling organizations, past mismanagement and its substantial payouts to governments and the racing industry have kept it on the brink of bankruptcy for years.