New York City OTB is broke, audit says [Government Bookie Op Bankrupt!]

Daily Racing Form ^ | 8/14/2009 | Matt Hegarty

[ml/nj]

SARATOGA SPRINGS, N.Y. - New York City Off-Track Betting Corp., the state-owned agency that has a monopoly on taking offtrack parimutuel bets from residents of New York's five boroughs, has an operating deficit of $38 million, an accumulated deficit of $228 million, and will be insolvent soon without legislative help or the implementation of drastic cost-cutting measures, according to an audit conducted by New York State Comptroller Thomas P. DiNapoli released on Friday.

The audit, which analyzed the operations of the state-owned company over the past four fiscal years, concludes that OTB's financial problems are largely related to its obligations

[ml/nj]

Well, duh. What business doesn't have financial obligations? I know New York State isn't the Federal Government, but anyone who would trust government to run the entire medical delivery system in this country when government can't even make money taking bets on horse races is an idiot.

ML/NJ

[advertising guy]

what you said

[101voodoo]

No surprise here. I can’t believe it lasted this long. Who the HELL would place a bet someplace where you have to pay taxes on your winnings when you can walk down to the local gin mill and place a bet with Luigi and keep your winnings tax free?

[Oldpuppymax]

A million REAL bookies make a profit in the US, but a state run bookie loses millions. Healthcare, of course, will BE DIFFERENT!!!

[TC Rider]

The IRS drove a Nevada brothel into insolvency.

The IRS then operated the brothel and lost money on it.

[ml/nj]

Who the HELL would place a bet someplace where you have to pay taxes on your winnings

One doesn't pay taxes normally on winnings (except on bets paying 300-1 and $600 or more for a single bet) but NYCOTB does reduce payoffs by 5% (or more). There are lots of other government run OTBs. SFAIK NYCOTB is the only one with this "5% surcharge." (Such a good idea! I wonder why they didn't make it 85% and rake in the dough 17 times as fast.)

ML/NJ

[mono]

What you said, plus I think some bookies pay better odds than the state.

[PGalt]

Well-stated...BUMP! BUMP! Courtesy ping.

[PittsburghAfterDark]

Wow, how can you NOT make money as a bookie?

This is.... oh wait, it’s New York State.

Nevermind.

[Oratam]

Is Hazel Dukes still making book? I thought Rudy gave her the boot a looooong time ago.

[dearolddad]

The IRS then operated the brothel and lost money on it.

That's because they tried to run it by hand.

[ml/nj]

I think some bookies pay better odds than the state.

Of course I wouldn't know about this from personal experience, but I hear that bookies actually cap the odds you can get so for example if you bet on a 100-1 horse that wins you might only get paid as if it were 30-1. The big advantage that bookies have over OTBs and the Vegas Sportsbooks is that they effectively get the entire take. (I.e. they don't have to share anything with horsemen or the state regulating - and taxing - the races.) But all the Vegas Sportsbooks seem to manage.

ML/NJ

[ml/nj]

Is Hazel Dukes still making book? I thought Rudy gave her the boot a looooong time ago.

Hazel is long gone. I don't know whether Rudy got rid of her, but I think Clinton appointed her to something.

ML/NJ

[Leisler]

"If the government were put in charge of the Sahara desert, that vast expanse would within a few short years suffer a shortage of sand."

[mono]

You are right. Some bookies pay at less than track odds and some pay full track odds. I dont know what OTB pays but they do take a fee, right?
I rarely wager on anything other than football point spreads with local or online books and pay 11 to 10 on losses.

[ml/nj]

The reason most horseplayers lose is that 15-20% is taken out of the pools for the track and the government combined before the remainder is divided up amongst the winning bettors. (Bets coming in from OTBs and other tracks have similar money taken out and the remote track has to pay some percentage to the track where the race actually occurs.) Everyone seems to pay out whatever the toteboard says after the race except for NYCOTB which takes an extra 5% rounded in their favor I'm sure, and most illegal bookies who limit the odds they pay on any bet. All the legal money goes into the host tracks pool; and some of the illegal money gets there too if the bookie is frightened by the amount he stands to lose. (I.e. he lays off his risk by placing a legal bet.)

ML/NJ