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Tuesday, January 26, 2010

NY OTB to Close - Things Change

It was announced that the New York city OTB network will close on March 30th, unless their reorganization plan is approved. One part of the plan calls for : "the state's tracks should "set the stage" to earn more revenue from simulcasting by increasing the rate for their signals."

So, they want to jack up rates (it does not matter where they jack them up, there is only one end user). That sounds a little anachronistic to us. It's not like it is 1986.

5 comments:

Pacingguy said...

Close them up. With ADW and phone betting they are obsolete. If you want, let a consortium of NY tracks run an OTB system consisting of teletheatres where the are entertainment centers.

Steve Zorn said...

It's not clear, to me at least, that raising the rate for the signal necessarily means increasing the takeout/ Tracks have for far too long underpriced their signals, leaving room for ADWs and casinos to offer massive rebates to the whales. Wouldn't it be fairer to lower takeout for everyone and have the tracks and horsemen get a fairer share of the revenue -- e.g., 12% takeout, 4% to the sending track, 4% to the horsemen and 4% to the bet-taker.

Of course, in the murky world of NY politics, you may be right that an increased cut for the sending track will result in increased takeout, but it doesn't necessarily have to be that way.

HANA said...

Steve,

There are quite a few places offering lower take to non whales. If a fee is upped 2%, the 2% comes from the margin of the ADW. They wont change their profit margin, so most is absorbed by the player. Right now there is a big squeeze going on as fees are upped. I think "real" takeout is probably 1% or 2% higher than a couple fo years ago.

All players wish for the 12% you speak of, but I think that has little chance of happening. In the meantime we are left at the whims of the short-sighted and the signal fee raisers.

Anonymous said...

"When you can't get to the track, you go to OTB"[from the video]. We'll these days, if you cant make it to that track, you use your computer, mobile device, home telephone, television to place your bets. My grandfather knows how to use a cell phone. OTBs were a thing of the 70's. Get rid of them or have NYRA run them. Too much useless competition. They are ruining the industry. Lets face it, if NY goes down..the entire sport goes down with it.

Anonymous said...

Goodbye NYCOTB !

I hope that they take the bathroom fixtures.

Expenditures At the OTB In Question
By SELWYN RAAB New York Times
Published: March 11, 1992


In the last two years, with profits on the decline, New York City's Offtrack Betting Corporation spent $20,000 to remodel an executive bathroom, almost $3,000 for flowers and $1,050 for political contributions, former employees and City Council investigators said.