The state reached a deal to take over the city’s Off-Track Betting Corp. on Friday, just two days before Mayor Michael Bloomberg planned to shutter the operation that employs 1,500 workers across the five boroughs.“There is a deal,” said Gov. David Paterson at a news conference at his office in New York City. “People should come back to work on Sunday or Monday.”
Details of the agreement are still being worked out, but the governor said the state will pass legislation Monday that will create a public benefit corporation to run the OTB operation. The transfer to the state will be completed within 90 days.
The deal saves 1,500 jobs at the 61 OTB betting parlors across the city.
“If OTB would have closed, everybody would have lost,” said Lillian Roberts, executive director of District Council 37.
The city was on track to begin running the financially troubled OTB branches at a loss this month, and the mayor threatened to shut them down if an agreement with the state could not be reached.
“We're not going to subsidize it,” the mayor said in his weekly radio address Friday morning. “I have to make a choice: People who work in a bookie operation, or cops who walk our streets? People who work in a bookie operation, or teachers who teach in our classrooms? We're not going to lay off cops and firefighters and teachers to support this.”
The state will immediately begin an overhaul of OTB to improve its profitability by eliminating duplicate functions between the city’s OTB, the New York Racing Association and the five other OTB branches around the state. The headquarters of OTB will be moved from Times Square to Aqueduct Racetrack in Ozone Park, Queens, saving $5 million a year in rent.
The governor also announced the nomination of State Sen. John Sabini, D-Queens, as chairman of the New York State Racing and Wagering Board. Upon confirmation, Mr. Sabini, who had been running for re-election, will step down from his Senate seat. The development virtually assures City Councilman Hiram Monserrate, D-Queens, will win the seat this fall.
