Off-Track Betting Closing Could Cause Legal Battle in New York

The OTB was created for New York City as a way for revenue to be generated from gambling without people having to go to racetracks to place bets. The system worked for a long time.

Last week, it was announced that the OTB(Off-Track Betting) would be closing down its operation due to lack of funds to keep it up and running. The Mayor, Michael Bloomberg, claimed that money needed to be spent elsewhere and that the city could no longer help fund the operation.

This is where the legal battle could come into play. The state law that was created to set up the OTB, clearly states that the authority over shutting down the system rests with the Legislature in Albany only, not the city.

The reality is that if the city decides to not fund the OTB, then they will run out of money and have to be shut down by June. It is not likely the city is obligated to pay money to keep the operation going.

"This is a complicated state/city relationship and the state may have a little more power, but it's hard to see how they could force the city to operate something at a loss," said Richard Briffault, a Columbia Law Professor.

The ESDC has maintained that the city is, in essence, shutting down the OTB by not funding it. They claim that is illegal. That group, nor the workers union has filed any lawsuits, or is threatening any lawsuits against the city.

Even if the lawsuits were won, without the proper funding, and working at a loss, the system would be flawed and end up out of business anyway. All parties involved are still searching for ways to keep the long running betting system running.

February 25, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
Submit News!