New York regional OTBs may provide the means to save the horse racing industry
As the New York Off-track betting has been shut down in the state, the horse racing industry has fallen into jeopardy. In order to save the industry that had been bringing in considerable amounts of revenue on an annual basis, the state is looking towards
the regional OTBs to keep the horse racing industry intact.
A plan has been brought forward by state Assemblyman J. Gary Pretlow, who is of the opinion that if the five regional OTBs were to be consolidated, the horse racing industry could be saved. He believes that the plan is feasible and could give positive results.
After a committee hearing in Albany, Pretlow had the following comments to make: “Of course the OTBs say no, that they're doing a yeoman's job providing funds to counties, but I think with the duplication that's going on that could be eliminated and more
monies could be sent to the counties."
The hearing included various stakeholders of the horse racing industry in New York State. Present were the track operators of the Thoroughbred and Standardbred racing tracks, breeders and two representatives of the regional OTBs. There was majority consensus
of opinion to consolidate the OTBs in some areas such as marketing, account wagering and tote systems etcetera.
However, there are some who believe that the OTBs will not be able to function this way and a third party intervention is necessary. Joe Faraldo, president of New York's Standardbred Owners Association and Charles Hayward, president and CEO of the New York
Racing Association share this view.
According to Faraldo, the third party entity should include people who are important stakeholders in the horse racing industry. They should consist of breeders, track people, horsemen etcetera. Faraldo quoted the examples of such models being adopted in
Illinois, Pennsylvania, and New Jersey. However, he strongly recommended that the present OTB management should not be made a part of this process as they are not up to the task in his opinion.
Hayward thinks that the financial records of the regional OTBs should be gone through a neutral third party.
"I don't think it would be difficult to get somebody objectively under the aegis of the Assembly or Senate or the Governor to form a task force," Hayward said. "There's plenty of good models that are out there. We'd be happy to contribute to that, we'd be
happy to do the study, but frankly it would be tainted and it wouldn't go anywhere. I think with the demise of New York City OTB we need a call to action. The solution shouldn't be for the other OTBs asking for more money, that's just not going to be work
for anybody."
Catskill OTB president, Don Groth thinks that the most immediate task lies with the state. According to Groth, the state should make a decision concerning the utilization of revenue generated by the regional OTBs. There should be legislation that states
whether the earnings should go to racing corporations that are privately run or, on the other hand, should it go to the local or state governments. Groth thinks it is imperative that this step be taken or the regional OTBs will also fall prey to bankruptcy,
like the state OTBs.
There were several other points that were brought up by the 13 witnesses that were called in the committee’s hearing one of which was that the OTBs should be given permission to provide live video-streaming of the horse races.
All the points and suggestions have been duly recorded by the committee members who will give their recommendations after thorough deliberations to the new administration in 2011.
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