Illegal Bookies Predicted to Make a Comeback as Off Track Betting Disappears
The last three horse betting parlors in the city will close their doors Monday, after New York lawmakers failed to agree on a rescue plan for Off Track Betting.
Even though horse racing is not as popular as it once was, NYC OTB still took in close $1 billion last year. In recent years, OTB has run a deficit because the law requires that it share revenues with government and the racing industry.
OTB board member David Cornstein says patrons who want to place bets will soon find a new outlet with underground operators.
"It'll be a local bookmaker or, from what I understand, they now have a lot of places offshore. But it's not gonna go away," Cornstein said.
Forty years ago, New York was the first state in the nation to create an off-track betting system, with the goal of taking illegal betting above ground and generating revenue for local government.
Governor David Paterson's office is now working on a liquidation plan, to sell off assets and break leases on more than 60 betting parlors.
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