Cash-strapped New York City OTB is once again racing toward closure

NYC

BY Kenneth Lovett

DAILY NEWS ALBANY BUREAU

Tuesday, January 26th 2010, 4:00 AM

ALBANY - The cash-strapped New York City OTB says it's racing toward closure - for the second time since 2008.

Unless the state Legislature approves its bankruptcy reorganization plan, NYC OTB says its doors will shut for good at the close of business March 30.

The organization, which employs about 1,400 people, could be broke by the first week of April and in heavy deficit by the middle of that month, Robert Garry, the OTB's chief financial officer, told board members yesterday.

The announcement was made to comply with a 60-day notice requirement before shuttering operations.

The New York Racing Association, which operates the state's three Thoroughbred tracks, including Belmont and Aqueduct, said it is "monitoring the situation closely since they are our biggest customer."

New York Thoroughbred Breeders Executive Director Jeffrey Cannizzo dismissed the situation as a "hollow threat."

"NYC OTB used the same trick in 2008, the last time they went bankrupt," Cannizzo said.

NYRA and the breeders oppose the reorganization plan, which would change how much the OTB distributes in revenues.