Governor, Legislators Talking
DC 37: Ride to OTB's Rescue

By ARI PAUL

Off-Track Betting workers who are facing unemployment rallied April 16 at City Hall before the City Council voted on a resolution urging the State Legislature to change a formula for distributing OTB's profits that has brought it to the brink of extinction.

The Chief-Leader/Katie Orlinsky KEEP RACING: Leonard Allen, president of Off-Track Betting Local 2021 of District Council 37, praised a City Council resolution passed April 16 urging the state to give the troubled corporation legislation it needs to become profitable. Joining him from left to right are Councilman Joseph P. Addabbo, DC 37 Executive Director Lillian Roberts and Councilman David Weprin.

Forty members of Local 2021 of District Council 37 joined Councilman David Weprin, who introduced a bill on the matter. Local 2021 has 1,400 members who could be laid off in June if the state does not act, since Mayor Bloomberg's representatives on the OTB Board of Directors voted to shut it down unless relief is provided. OTB President Raymond V. Casey disclosed during an April 10 City Council hearing that the corporation did not have enough money to pay annual leave to all of its current employees.

'Lose More Than Jobs'

"If Albany does not act, and if Albany does not act quickly, we'll lose these jobs, but we'll lose more than the jobs," Councilman Weprin said, referring to the restaurants and businesses that thrive on customers coming to nearby OTB locations.

He continued, "Ironically, New York City OTB is the most-profitable OTB in the entire state of New York. They generate almost $130 million in profit each and every year, they have over a billion dollars in revenue each and every year from the bets. So why is New York City OTB in trouble? The reason they're in trouble is that the state has created a formula which has become unworkable to New York City OTB. Basically the formula says that New York City OTB has to pay out from gross profit as opposed to net profit."

A day earlier, Governor Paterson said he had begun discussions with legislative leaders about providing, "long-term changes that can make all six of the state's OTBs more profitable and productive."

Councilwoman Helen Sears said that the Mayor's decision to abolish OTB did not make financial sense.

"It costs more to shut the OTB down than it does to change the formula," she said.

Why Change Occurred

The revenue-distribution formula was altered five years ago when OTB sought to take bets on thoroughbred racing at night, hoping that the combination of televising those races - particularly from the major tracks in southern California - and its phone-betting operation would produce significant added revenue. To satisfy the concerns of harness-track operators who feared that additional betting would come at their expense, OTB agreed to a revised formula giving a bigger share of its gross revenues to those tracks, even if they were not in operation at the time.

Mr. Weprin added that it is important for OTB to stay operational because illegal betting would flourish without its existence.

"You will have the potential of organized crime," he said, although illegal bookmakers have long taken bets on horse-racing.

DC 37 officials and Council Members said that they had been in talks with the Governor's Office and the State Legislature about the issue and there was reason to be hopeful.

'Cautiously Optimistic'

"We're cautiously optimistic," DC 37 Executive Director Lillian Roberts said after the rally.

Ms. Roberts called the crisis for her members "a long time coming," adding that the city believed it should not have to subsidize OTB.

"They're upset, but we've been to Albany and we've lobbied," she said, referring to the workers who have already received their layoff notices. "I think they're getting educated as to what it's all about now."