OTB handle down $7M over last year Officials say the figures reflect weak economy and sluggish racing industry
By CAROL DeMARE, Staff writer First published in print: Tuesday, November 4, 2008
ALBANY — Not surprisingly, betting at Capital OTB parlors is down this year — a sign of not only a weakening economy but of a sluggish racing industry, officials said Monday.
OTB's handle — the amount wagered — is down 4 percent or $7 million over this time last year, President and CEO John Signor said. A year ago, the handle was $173 million, and it dipped to $166 million this year.
Statewide, the scenario is repeated, with all six OTB corporations showing a total decline in handle of $86.8 million, Signor said. New York City OTB, alone, which is now being run by the state, is down $60 million.
Signor called that "a positive thing, because now the state can see firsthand how the issue of the economy and off-shore Internet sites are impacting wagering in New York state."
OTB executives met with the administration of Gov. David Paterson "and they appear to agree that action must be taken to protect New York's horse racing market from out-of-state Internet sites,'' he said.
On the bright side, last month's Breeders Cup handle was up $17,000 over 2007. Bettors wagered more than $2.7 million over two days at OTB parlors on top thoroughbreds racing at Santa Anita Park in California, Signor said.
But the OTB handle during the summer Saratoga meet dropped from $21.3 million last year to $18.9 million this year, he said. Rain during the first two weeks hurt the handle at the Saratoga Race Course and OTB, he said.
To compensate, Capital District Regional Off-Track Betting Corp., which operates parlors in 16 counties and the city of Schenectady, has slashed expenses. Through September, spending was cut by $750,000 and over four years by $2 million.
The quasi-public corporation continues to provide amenities to attract patrons. Its Internet wagering site, which began last December, has proved successful with $8 million in wagers through October, which Signor called "very strong."
Also doing well is the Winners Circle at the Teletheater on Central Avenue in Albany. It offers a private wagering area with large flat screen TVs, parking and a private entrance. Currently, 35 individuals have joined at a $500 annual membership fee, Signor said.
"It's clear the economy is having a negative impact at OTB as it is among many sectors of government and businesses across the state and country," Signor said.
"In addition state mandates have added costs to OTB's bottom line, and the ability of out-of-state and off-shore Internet sites to operate in the New York market is taking hundreds of millions of dollars in handle out of state with no benefit to the state," he said.
In one state mandate, Capital OTB pays Saratoga Harness $3.2 million annually on a $3.7 million handle, he said. "The track is getting 86 cents on every dollar wagered at Capital OTB," he said, calling that "outrageous" and suggesting the state change the hold-harmless law that mandates county taxpayers subsidize privately owned harness tracks, many of which operate video lottery terminals.
Carol DeMare can be reached at 454-5431 or cdemare@timesunion.com.
I was never a believer in depending on 'gambling' as a reliable source of revenue!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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