OTB Gears for Summer Close

By RICHARD STEIER

The Off-Track Betting Corporation Jan. 16 put forward a plan under which it would lay off most employees in mid-June and cease operations during the summer unless the state grants it relief by allowing it to keep a larger percentage of its betting handle.

Mayor Bloomberg had requested the contingency plan, under which layoff notices would be issued in mid-April, because OTB is losing money and is dipping into its reserves to avoid needing a city bailout.

Lenny Allen, the president of OTB Local 2021 of District Council 37 - which represents about 1,400 of the 1,500-plus employees affected - has expressed alarm about the possible shutdown, which figures to be a prelude to selling the betting corporation to private interests.

Several legislators, including the head of the Assembly's Race and Wagering Committee, have said they believe Mr. Bloomberg is bluffing in an attempt to persuade Albany to grant relief from the current wagering formula. Several years ago, in return for being allowed to take bets on night-time thoroughbred racing, OTB agreed to remit a higher percentage of its betting handle to the state and its racetracks. It has not garnered enough revenue from the night races to recoup what it lost from the handle.

Consolidation Possible

State officials were expected to make a decision before the end of the month as to whether the New York Racing Association, which operates the state's three major thoroughbred tracks - Aqueduct, Belmont and Saratoga - will continue to do so and for how long. It is possible that the final decision will also cover the future of the state's five regional Off-Track Betting operations - including New York City OTB - which some have said should be consolidated into the track operations.

The OTB board also is expected to vote on the shutdown plan by the end of the month.