06/15/2008 11:00PM

New York City and state reach OTB deal

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Officials of New York state and New York City said on Sunday night that they had worked out a deal that will enable the state to take over New York City Off-Track Betting Corp.

The deal, which will allow the city to retain a portion of the revenues from a surcharge on winning bets, will likely go into effect after legislation is passed on Monday by the state's Assembly and Senate. Gov. David Paterson and other state officials had announced a deal on Friday for the state takeover, but the Bloomberg administration then said that it opposed the deal unless it was allowed to retain the surcharge revenues, which can amount to $17 million to $19 million annually.

"Although the negotiations went down to the wire, they produced an agreement that truly belongs in the winner's circle," Bloomberg said in a statement.

Bloomberg had threatened to shut down OTB's 60-plus parlors and its account-wagering operation as of Monday unless the state allowed the company to retain more of its revenues. Under the deal, the state will take over the operation and explore ways to merge the state's six OTB corporations into one entity, officials have said.