Bill passes that would help struggling New York OTBs

A recently passed bill in the New York legislature would allow the state’s offtrack-betting corporations to draw from their capital funds to help pay for operating expenses.

The bill, which awaits the signature of Gov. Andrew Cuomo, enables each of the state’s five OTB corporations to draw up to $500,000 from their capital acquisition funds once per year to use toward operating costs. At least 10 percent of the money drawn out must be distributed among the governments of participating counties where the OTB parlors are operated, with the splits based on each county’s population. All withdrawals must be approved by the New York State Gaming Commission.

Capital funds for OTB operators are largely generated by a percentage of each wager made at one of their locations.

In its language, the bill describes the state’s OTBs as “public benefit corporations” created to support local governments by providing revenue streams to offset property-tax increases. The writers of the bill cited a decline in those revenue streams due to an outdated statutory framework, which has led to OTBs cutting significant amounts of operating expenses and reducing employment.

Supporters of the legislation said the additional access to capital funds would help sustain local jobs and keep the OTB parlors in operation.

Assemblyman Gary Pretlow, chairman of the Assembly Racing and Wagering Committee, sponsored the bill, which was passed by the New York Assembly on June 24, following its success in the Senate earlier in the month.