07/06/2010 11:00PM

New York OTB president resigns

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Ray Casey resigned as president of the bankrupt New York City Off-Track Betting Corp. on Wednesday, and was replaced by Greg Rayburn.

Rayburn was a former chief executive officer for Frank Stronach's Magna Entertainment Corp. when that company was in bankruptcy. New York City OTB has been in Chapter 9 bankruptcy since December.

Larry Schwartz, who was recently appointed by New York Gov. David Paterson as chairman of NYC OTB - replacing Sandy Frucher, who resigned - announced the change at the company's monthly board meeting.

"I do believe that the person that we've selected is going to be the solution for the health and future success of this corporation," Schwartz said at the meeting, according to a New York Post blog item. "This corporation has spent nearly $2 million in the last year on outside consultants and has very little to show for it."

Casey served as OTB'S president for eight years.

According to published reports, Rayburn is going to earn a monthly salary of $125,000, significantly more than Casey was making.