Ongoing re-working of NYC OTB and its' entities..
 

Union says it has agreement with New York OTB
By Matt Hegarty

The bankrupt New York City Off Track Betting Corporation has reached a tentative deal with its union that would result in the loss of 550 jobs at the company and the transfer of OTB’s account-wagering operations to state racetrack operators, including the New York Racing Association, according to the union.

The union’s members are scheduled to vote on the plan on Oct. 6. Full-time employees are being offered $12,000 in severance if they agreed to be laid off, according to a report of the plan on the union’s website. The OTB company currently has about 1,300 union employees.

Also under the plan, New York City OTB’s telephone and Internet wagering operation would be transferred to the company’s racetrack creditors to satisfy a $100 million debt, according to the report. In addition, tracks would accept a $30 million annual reduction in the amount of money provided by bets through OTB, through proposed statutory changes to the distribution formula for the fees, the union said.

NYC OTB union approves deal; Slashes 550 jobs, gives account wagering to NYRA/Harness

By PAUL POST
The Saratogian

SARATOGA SPRINGS — New York City Off Track Betting Corp.’s largest union has approved a deal that would slash more than 500 jobs and see racetracks take over the firm’s account wagering operations.

The steps are part of a reorganization plan developed by OTB President and CEO Greg Rayburn to put the state-owned, bankrupt firm on a course toward profitability. Racetracks would also take a $30 million reduction in state-mandated disbursements from New York City OTB. However, any deal is subject to approval by OTB’s creditors’ committee and the bankruptcy court. New York Racing Association is OTB’s second largest creditor, owed more than $20 million alone.

Some elements of the reorganization plan, such as changing statutory payments, would be subject to legislative approval. It’s possible the deal could be worked out in the new few weeks. However, the biggest obstacle might be harness track owners, led by high-powered New York businessman Jeff Gural, who want an added one percent take on revenue from video gaming be rescinded under the deal.

Tentative ADW Deal Reached in New York
By Tom Precious

A tentative deal has been reached to let the New York Racing Association and other tracks take over the advanced deposit wagering system now run by the giant New York City Off-Track Betting Corp. The agreement announced by Gov. David Paterson Oct. 20, part of a deal to resolve NYCOTB’s bankruptcy case, includes keeping open the nation’s largest off-track betting entity, though on a scaled-down basis.

A top lawmaker, however, said the final terms have not yet been agreed to, and much work remains before a final agreement can be announced to take to the federal bankruptcy judge overseeing the NYCOTB case.

Much of the tentative agreement, such as permitting racetrack-based casinos to offer more “free play’’ opportunities to entice bettors, require legislative approval. “I’m not in a mood to give away any of the state’s money,’’ Pretlow said of the “free play’’ plan. Pretlow said elimination of certain statutory payments by the NYCOTB, which is a state entity, will also face problems because other OTB’s are still being required to make those payments.