New York City’s bankrupt Off-Track Betting Corporation (OTB) has reached a deal with creditors to keep the business afloat. In exchange for forgiving $65M of its total $95M of debt, the New York Racing Association (NYRA) and other racetracks will take over OTB’s online and telephone wagering system.
As part of the deal, which must first be approved by the bankruptcy court judge, an estimated 488 layoffs will occur, primarily at the telephone wagering system. If and when OTB emerges from bankruptcy, it will resume making the $2M/month payments to NYRA that OTB has been withholding to keep itself afloat.
Eric Adams, chairman of the state Senate Racing, Wagering and Gaming committee said the deal “will support and stimulate future financial health for the racing industry.” We’re presuming Adams also said he believes the bolt-necked creature Dr. Frankenstein had just reanimated with a bolt of financial lightning would have a long and happy life, then danced around the room, yelling “It’s alive! ALIVE!!!”