Steinway Street OTB Parlor Closes

Photo Vinny DuPre This OTB parlor at 28-15 Steinway St., Astoria was the first in the city to be closed as part of an emergency closure plan put into effect Tuesday, February 19 by the New York City OTB Corporation Board of Directors.

The Off Track Betting (OTB) establishment at 28-15 Steinway St., Astoria was closed on Tuesday, February 19 as part of a closure plan implemented by the New York City OTB Corporation Board of Directors during an emergency meeting. Although OTB's revenues exceed its operating costs by $129 million per year, state law requires that it provide millions more annually to Albany, which will cause the corporation to run cash negative in June. The closure plan was presented to the board to avoid a situation where OTB would need to be subsidized by taxpayer funds.

OTB was first established in 1970 with its core mission raising revenue for the city and state.

With annual sales of more than $1 billion, and revenues exceeding operating costs by more than $129 million, OTB could still be profitable. However, the state legislature has forced OTB to pay an increasing percentage of its profits to help support the on-track state racing industry.

Since 2004, OTB has reduced management positions by 15 percent, cut overall headcount by 14 percent, and closed branches to remain profitable. In 2006, the city Economic Development Corporation hired a consulting firm to perform a six-month study and develop a comprehensive plan to revitalize the New York racing industry. However, the funding formula imposed by the state has not been addressed. Last week, the legislature and the governor agreed to fund a bailout for the New York Racing Association, but ignored the local governments that are responsible for OTB parlors across the state.

Mayor Michael Bloomberg said that the city would stay in close contact with the unions affected by the closure. He also thanked the board, including Chairman David Cornstein and President Raymond Casey, for their stewardship and service.