State investigating NYRA takeout issues; Hayward, Kehoe terminated

Here's the e-mail I sent to the Saratogian and Albany Times-Union when this story first hit last December:

"I don't understand why the New York State Department of Taxation and Finance is getting a pass on this. You need to talk to someone in what passes for their Pari-Mutuel Revenue Unit in Albany and ask them why they didn't catch this error for 15 months.

Prior to 1991, Pari-Mutuel Examiners of the Tax Dept. were in place at NY State tracks and off-track betting venues to check EACH AND EVERY POOL to insure the accuracy of the reported handle, commission, breakage, and payoff to the public. They also saw to the collection of franchise fees and admissions taxes. In that year, NY State decided, AS A COST-CUTTING MEASURE, to disband the entire unit, and lay off or transfer the employees.

I know this for a fact because I was one of the examiners so affected. All you have to do is check the history of NYRA's transgressions over the last two decades to realize the State Tax Dept.'s decision to leave the henhouse unguarded was actually a very costly one. Had we been in place, say, on 9/15/10, the error would have revealed itself after the running of the very first race with "exotic" betting."

Incidentally, my ex-boss at Pari-Mutuel who was the last remaining Tax Dept. representative at NYRA until August, 2010 (!!!) just e-mailed me to let me know he was contacted recently by a reporter from the Albany Times-Union.