Off-track betting in New York#Capital OTB

The New York State Legislature enacted its first off-track betting law in 1970, creating the New York City Off-Track Betting Corporation and allowing other municipalities to establish their own OTB operations.{{cite court|litigants=Finger Lakes Racing Assn. v. New York State Off-Track Pari-Mutuel Betting Comm.|vol=30|reporter=N.Y.2d|opinion=207|pinpoint=215-216|date=1972|url=http://law.justia.com/cases/new-york/court-of-appeals/1972/30-n-y-2d-207-0.html|accessdate=2017-04-01}} The law was meant to curb illegal bookmakers and provide a revenue source for state and local governments.{{cite report |url=https://www.osc.state.ny.us/localgov/pubs/research/otb0915.pdf |title=Are Off-Track Betting Corporations Nearing the Finish Line? |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2018-03-18}} NYC OTB began taking bets in 1971.{{cite news |author=Vincent Butler |date=April 9, 1971 |title=They're off and betting fast in New York betting parlors |url=http://archives.chicagotribune.com/1971/04/09/page/1/article/theyre-off-and-pacing-fast-in-new-york-betting-parlors |access-date=2017-04-01 |newspaper=Chicago Tribune}} The City of Schenectady followed in 1972 with its own OTB operation.{{cite news |author=Emmet N. O'Brien |date=August 27, 1972 |title=Schenectady OTB has great hopes |url=https://www.newspapers.com/newspage/162874208/ |access-date=2017-04-01 |newspaper=The Journal News |location=White Plains, NY |agency=Gannett News Service}} {{subscription required|via=Newspapers.com}}

The current system of regional OTB corporations was enacted in 1973{{cite court|litigants=Western Regional Off-Track Betting Corp. v Town of Henrietta|vol=78|reporter=Misc.2d|opinion=169|pinpoint=170|date=1974|url=http://www.leagle.com/decision/197424778Misc2d169_1202/OFF-TRACK%20BETTING%20v.%20TN.%20OF%20HENRIETTA|accessdate=2017-04-01}} and parlors began showing live video feeds of races, referred to as simulcasting, in 1984.{{cite news |author=Mark Cusano |date=August 30, 1984 |title=Simulcasting begins; Opens locally today |url=https://www.newspapers.com/clip/20020874/simulcasting_begins_opens_locally_today/ |newspaper=The Post-Star |location=Glens Falls, NY |via=Newspapers.com}}{{cite report |title=New York State's $2 Billion Trifecta: NYRA, VLTs & OTB |date=February 2006 |publisher=Maryland Tax Education Foundation |page=3}}

As of 2025, off-track betting is offered by four regional corporations. Each corporation is a public benefit corporation, run by a board of directors who are appointed by the governments of the participating counties and cities. In addition to New York City, the ten counties that were once covered by Catskill OTB, thirteen other counties, Allegany, Delaware, Hamilton, Jefferson, Lewis, Onondaga, Ontario, Otsego, Saratoga, Schoharie, Tompkins, Westchester, and Yates do not have any OTB parlors.

Each of the OTB corporations accepts wagers at a number of full-service branch locations, at self-service terminals located in restaurants and bars, and by telephone and Internet.{{cite report|title=The Optimal Utilization of the State's Regional Off-Track Betting System to Raise Revenues for State and Local Governments and Strengthen The Racing and Breeding Industries in New York|publisher=Task Force on the Future of Off-Track Betting In New York State|page=29|date=January 13, 2010|url=https://www.gaming.ny.gov/pdf/Task%20Force%20Final%20Report%201-08-10%2011am.pdf|access-date=2017-03-25}}

Out of each wager placed through OTB, approximately 77{{nbsp}}percent goes into the parimutuel pools for distribution to winning bettors. The remaining amount, known as the "takeout", is retained by the OTB operator. In addition, a surcharge of 5 or 6{{nbsp}}percent is deducted from most payouts to winning OTB bettors.{{cite journal|title=New York City OTB: Is the Model Broken?|author=Bennett Liebman|date=April 2, 2010|journal=Albany Law School Legal Studies Research Paper Series|page=3|ssrn=1582650}} From these revenues, payments are made to the state, participating counties and cities, racetracks, and funds to support the racing industry. After the OTB's operating expenses are paid, any remaining profits are disbursed to the state and the participating counties and cities.

Capital District Regional Off-Track Betting Corporation covers sixteen counties including the cities of Albany and Schenectady.{{cite report |url=https://www.osc.state.ny.us/localgov/audits/swr/2015/OTB/capitalotb.pdf |title=Capital Off-Track Betting Corporation |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2017-03-11}} It has 33 branch locations, including its flagship Clubhouse Race Book in Albany.{{cite web |title=Branch Hours |url=http://www.capitalotb.com/wp-content/uploads/2014/02/BRANCH-HOURS-saratoga-hours-1.pdf |access-date=2017-03-11 |publisher=Capital OTB}}{{cite web |title=About Capital District Off-Track Betting |url=http://www.capitalotb.com/wp-content/uploads/2014/02/BRANCH-HOURS-saratoga-hours-1.pdf |access-date=2017-03-11}}

File:Race Palace; Former Plainview (NY) Galaxie Hotel.jpg

Nassau Regional Off-Track Betting Corporation, also known as Nassau Downs, covers Nassau County.{{cite report |url=https://www.osc.state.ny.us/localgov/audits/swr/2015/OTB/nassauotb.pdf |title=Nassau Off-Track Betting Corporation |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2017-03-11}} It has six branch locations, including Race Palace, its flagship teletheater in Plainview.{{cite web |title=Branches |url=http://info.nassauotb.com/otb_branches.aspx |access-date=2017-03-11 |publisher=Nassau OTB}}{{cite news |author=Josh Benson |date=May 16, 2004 |title=From Plainview, you can see Belmont |url=https://www.nytimes.com/2004/05/16/nyregion/from-plainview-you-can-see-belmont.html |access-date=2017-03-11 |newspaper=The New York Times}} A 2013 law authorizes the corporation to run a casino with up to 1,000 slot machines; instead of opening a casino in Nassau County, that right was licensed to Aqueduct Racetrack to enable an expansion of its Resorts World casino.{{cite news |author=Tom Precious |date=January 27, 2017 |title=Strife building over New York VLT proceeds |url=https://www.bloodhorse.com/horse-racing/articles/219417/strife-building-over-new-york-vlt-proceeds |access-date=2017-12-10 |newspaper=The Blood-Horse}}

Suffolk Regional Off-Track Betting Corporation covers Suffolk County.{{cite report |url=https://www.osc.state.ny.us/localgov/audits/swr/2015/OTB/suffolkotb.pdf |title=Suffolk Off-Track Betting Corporation |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2017-03-11}} It operates four branch locations, including its flagship Racing Forum teletheater in Hauppauge.{{cite web |title=Locations |url=http://www.suffolkotb.com/pages/locations.html |access-date=2017-03-11 |publisher=Suffolk OTB}}{{cite web |title=About Us |url=https://www.qwikbetz.com/aboutUs.do |access-date=2017-03-11 |publisher=QwikBetz}} It owns and operates Jake's 58 Hotel & Casino in Islandia, under a law authorizing Suffolk OTB to run a casino with up to 1,000 slot machines.{{cite news |author=Spencer Rumsey |date=March 30, 2017 |title=Lawsuit could still drive a stake through Jake's 58 gambling casino |url=https://www.longislandpress.com/2017/03/30/jakes-58-gambling-casino-lawsuit/ |access-date=2017-12-10 |newspaper=Long Island Press}}{{cite news |author=Carl MacGowan |date=May 28, 2021 |title=Suffolk OTB completes purchase of Jake's 58 casino-hotel for $120M |url=https://www.newsday.com/long-island/suffolk/jake-s-58-sale-suffolk-otb-casino-1.50259807 |access-date=2021-10-23 |work=Newsday}}

The corporation was under Chapter 9 bankruptcy protection from 2012 to 2020.{{cite news |author=Rachelle Blidner |date=May 15, 2021 |title=Suffolk gets record $7.2 million payment from county Off-Track Betting |url=https://www.newsday.com/long-island/suffolk/suffolk-otb-payment-1.50246816 |access-date=2021-10-23 |work=Newday}} Jake's 58 was opened in 2017 by Delaware North under license from Suffolk OTB; it was purchased by the OTB corporation in 2021 for $120 million.

Western Regional Off-Track Betting Corporation covers fifteen counties in Western New York and the cities of Buffalo and Rochester.{{cite report |url=https://www.osc.state.ny.us/localgov/audits/swr/2015/OTB/westernotb.pdf |title=Western Off-Track Betting Corporation |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2017-03-11}} It has nineteen branch offices, and also owns and operates Batavia Downs racetrack and casino.{{cite web |date=2013-05-22 |title=Locations by County |url=http://www.westernotb.com/locations/locations-county/ |access-date=2017-03-11 |publisher=Western OTB}}{{cite web |title=Contact Us |url=https://www.bataviadownsgaming.com/contact-us/ |access-date=2017-03-11 |publisher=Batavia Downs}}

Catskill Regional Off-Track Betting Corporation covered ten counties in the Catskills and Southern Tier regions.{{cite report |url=https://www.osc.state.ny.us/localgov/audits/swr/2015/OTB/catskillotb.pdf |title=Catskill Off-Track Betting Corporation |date=September 2015 |publisher=New York State Comptroller |page=2 |access-date=2017-03-11}} Stand-alone OTB locations closed during the COVID-19 pandemic in 2020 and never reopened.

In 2022, Gov. Kathy Hochul released a long-buried report from the Andrew Cuomo administration, accusing Catskill OTB of waste, mismanagement and hoarding broken equipment. That year, the New York State legislature is considering merging Catskill OTB with the more profitable Capital OTB{{Cite web |last=Munson |first=Emilie |date=2023-03-18 |title=State will decide if nearly bankrupt betting company should close |url=https://www.timesunion.com/news/article/catskill-otb-state-debates-shut-expansion-nyc-17842913.php |access-date=2023-05-15 |website=Times Union |language=en-US}} however it was given a lifeline in the state budget for 2023-2024.{{Cite web |last=Munson |first=Emilie |date=2023-05-06 |title=Catskill OTB survives state's closure threat to continue betting |url=https://www.timesunion.com/hudsonvalley/news/article/catskill-otb-survives-state-s-closure-threat-18076926.php |access-date=2023-09-29 |website=Times Union |language=en-US}}

As of 2023, it had 13 locations at various bars, pubs and restaurants.{{cite web |title=Addresses |url=http://www.interbets.com/racing/otb/locations/addresses/ |access-date=2017-03-11 |publisher=Catskill OTB}}

Catskill OTB officially ceased taking bets and closed its operations on November 30, 2024, though it was hoping new legislation and financial assistance could be secured to restructure and reopen at some point in the future.{{Cite web |last=Whalen |first=Ryan |date=2024-11-22 |title=Catskill OTB will cease taking bets Nov. 30 |url=https://spectrumlocalnews.com/nys/central-ny/politics/2024/11/23/catskill-otb-will-cease-taking-bets-november-30 |access-date=2025-02-27 |website=spectrumlocalnews.com |language=en}}{{Cite web |title=Interbets OTB: Horse Racing Wagering with Off-Track Betting |url=https://interbets.com/ |access-date=2025-02-27 |website=Interbets OTB: Horse Racing Wagering with Off-Track Betting |language=en-US}} Bettor accounts were transferred to Suffolk OTB. In response, the Director of the New York State Gaming Commission blamed the closure on a "pattern of mismanagement that has plagued this organization for years."{{Cite web |last=Whalen |first=Ryan |date=2024-11-22 |title=Catskill OTB will cease taking bets Nov. 30 |url=https://spectrumlocalnews.com/nys/central-ny/politics/2024/11/23/catskill-otb-will-cease-taking-bets-november-30 |access-date=2025-02-27 |website=spectrumlocalnews.com |language=en}}

File:OTB Parlor in Ditmars.jpg, as seen in June 2010]]

The New York City Off-Track Betting Corporation covered the five boroughs of New York City. At its peak in the mid-1980s, it had over 150 betting parlors.{{cite news |author=Ryan Goldberg |date=February 7, 2013 |title=New York OTB: Remembering a city icon |url=http://www.drf.com/news/new-york-otb-remembering-city-icon |access-date=2018-03-18 |newspaper=Daily Racing Form}} Mayor Rudy Giuliani attempted to privatize the corporation, and in 2001 the bid was won by Magna Entertainment and Greenwood Racing over a partnership between NYRA and Churchill Downs Incorporated.{{cite web |author=Matt Hegarty |date=2 August 2001 |title=NYC accepts Magna's bid for OTB |url=http://www.espn.com/horse/news/2001/0802/1234469.html |website=ESPN}} However, the state legislature never approved the deal, and his successor Michael Bloomberg cancelled the process.{{cite news |date=21 February 2002 |title=New York City OTB Gets New Boss |url=https://www.bloodhorse.com/horse-racing/articles/189320/new-york-city-otb-gets-new-boss |work=The Blood-Horse}}

In June 2008, NYC OTB was taken over by New York State.{{Cite web |last=Spector |first=Joseph |title=State To Take Over NYC OTB |url=https://www.democratandchronicle.com/story/news/politics/blogs/political-scene/2008/06/13/state-to-take-over-nyc-otb/2254503/ |access-date=2024-03-06 |website=Democrat and Chronicle |language=en-US}} The corporation filed for Chapter 9 bankruptcy protection in 2009, by which time it had only 66 parlors.{{cite news |author=A.G. Sulzberger |date=December 3, 2009 |title=Bleeding cash and deep in debt, OTB files for bankruptcy protection |url=https://www.nytimes.com/2009/12/04/nyregion/04otb.html |access-date=2018-03-18 |newspaper=The New York Times}} On December 7, 2010, the New York City OTB permanently closed all of its parlors as part of its liquidation.{{cite news |author=Russ Buettner |date=December 8, 2010 |title=New York betting parlors close doors |url=https://www.nytimes.com/2010/12/09/nyregion/09otb.html |access-date=2017-03-18 |newspaper=The New York Times}}

• New York Racing Association

{{reflist|33em}}

Category:Sports betting

Category:Horse racing in New York (state)

Category:1971 establishments in New York (state)