In response to questions provided in advance from the NYS Senate, NYTB Board President Barry Ostrager and NYTB Executive Director Jeffrey Cannizzo will respond with the following statement on behalf of New York’s breeders at the March 15th New York State Senate Meeting on New York City OTB:
Statement of NYTB for NYS Senate Meeting on NYC OTB
As has been widely reported in the press, unless the State honors its contractual and legislatively mandated obligation to reimburse NYRA for the VLT revenue that NYRA was to receive from VLT’s commencing March, 2009 and/or backstops OTB’s arrearages to NYRA, there will be no Saratoga race meet this summer. So, there is genuine urgency in resolving NYC OTB related issues. There is also genuine urgency about taking steps to preserve the disintegrating New York breeding program which directly impacts the local economies of 50 New York State counties and has a multi-billion dollar impact on the State in the aggregate.
It was a historic mistake for NYC OTB to have been created as an enterprise that competes in many ways in a destructive manner with NYRA. It is now clear that the 1971 NYC OTB model is a failed experiment. But, NYC OTB and the revenue streams it creates for the New York racing and breeding industry cannot be terminated at the end of this month because of the dislocations its immediate termination will cause. These dislocations include the elimination of hundreds of millions of dollar of revenue to the State, the destruction of the indigenous New York breeding industry, the cancelation of racing, including the upcoming Saratoga race meeting, and the elimination of tens of thousands of jobs in multiple sectors of the State’s economy. NYC OTB needs to be wound down in an orderly fashion in a manner that doesn’t prejudice all of the industry stakeholders. The State needs to keep NYC OTB on “life support” so that it can continue funding the New York racing and breeding industry while a sensible plan is developed to eliminate the destructive competition in the distribution of the NYRA racing product between NYRA and NYC OTB. A sensible plan would also eliminate unnecessary management and overhead at NYC OTB and consolidate certain duplicative functions performed by NYC OTB and NYRA, most particularly telephone and account wagering operations which should be conducted by NYRA.
NYTB supports the concept of a single tote system. This consolidation should merge the NYC OTB telephone and internet account wagering operation into the NYRA platform. A New York Racing Network should be established which would broadcast racing at NYRA and include other simulcast signals, with uniform content and production at NYRA tracks and NYC OTB outlets. The current television channels (73 and 77) would be used for distribution. A joint marketing effort with joint promotions would be directed at increasing handle rather than competing for existing bettors at NYRA/NYC OTB. NYTB also believes that NYRA should be allowed to operate a limited number of off track wagering facilities without in any way assuming any of NYC OTB’s legacy obligations.
NYTB is against reducing racing days and against reducing the number of New York bred races. The reality is that with enhanced purses in Pennsylvania, New Jersey, Delaware, and Canada (jurisdictions with flourishing VLT programs), NYRA couldn’t fill its race-cards without New York bred races. Since field size drives handle at racetracks and New York bred races produce full fields, carding New York bred races translates into larger handle. The race days and race conditions are a result of supply and demand. More fundamentally, the New York bred racing program supports the indigenous New York breeding industry which creates thousands of jobs and preserves green space. A vibrant New York breeding program, funded by breeder, stallion, and owner awards from the New York Thoroughbred Breeding and Development Fund benefits the economy and tax revenue base of New York in countless ways. It is a win-win-win proposition. It creates jobs, stimulates the economy, provides product for the New York thoroughbred tracks which generates handle and tax revenue.
On the subject of off-track-betting operations other than NYC OTB, NYTB believes those outlets should share with NYRA take-out revenue derived from the NYRA signal on the same basis NYRA receives revenue from live racing (excluding the surcharge revenue).
Source URL: http://www.nytbreeders.org/news/2010/03/14/nytb-statement-for-315-nys-senate-meeting-on-nyc-otb/
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