OTB to Close Its Doors; Yups Rejoice.

Yes it looks like that stubborn, much-reviled, stumbling block in the way of Park Slope progress, the 5th Avenue OTB (cue nasally voice: 'What even is iiiit??'), where my grandfather and many others wiled away many a smoky afternoon, will likely be closing its doors in the near future much to the satisfaction of the proponents of the continuing "Brooklyn Renaissance."

Saw this this morning:

Mayor Rejects Bailout For Cash-Strapped OTB Corporation
November 15, 2007

Mayor Michael Bloomberg says he will not gamble taxpayer dollars to bail out New York City Off-Track Betting – a decision that could force OTB to close its doors.

The mayor rejected Thursday a bailout for the cash-strapped corporation, and the OTB chairman asked for a plan to shut down operations at all 73 of its branches.

The mayor says city services like education and health care take precedent over the betting parlors.

"We are not going to subsidize it," said Bloomberg. "This city has too many other things to do with its money. We need to educate kids and help people who aren't as lucky as you and I, and bring down crime, and improve our cultural institutions, and do lots of those things. It is not to go and subsidize the racing industry."

The city OTB Corporation is expected to run out of cash by June because the state's new revenue sharing policy vastly reduced its profits, diverting most of the profits to the racing industry.

"And if they cannot find in their hearts the ways to not take 110, 120 percent of our profits, then we're just going to close it down," said Bloomberg.

Statewide, the whole multi-billion racing industry is also in flux – with a state franchise agreement set to expire at the end of this year. Many, including Governor Eliot Spitzer, think OTB should be looked at as part of a bigger plan to fix racing, although he doesn't expect it all to be resolved before January.

"The governor looks forward to working with the Legislature, the mayor, New York City OTB and the five regional OTBs around the state to find a solution," said a mayor spokesperson in a statement.

A shutdown would not just disappoint racing fans. With no official place for betting, there are concerns organized crime could step in with bookies filling the void"

OTB employees also stand to lose their jobs, although the city is looking at severance packages and other city positions. Former state Assemblyman Barry Grodenchik represents a union for 1,400 OTB workers.

"It should be a win-win for everybody, but currently it's not,” said Grodenchik. “But until we fix that formula, it's just an untenable situation."

The City Council plans to hold a hearing on the issue early next month.

- Josh Robin