Public Employee Press

Union protects members as OTB faces crisis

Gov. David Paterson issued an executive order Sept. 1 allowing the New York City Off-Track Betting Corp. to file for restructuring under Chapter 9 of the federal bankruptcy law. The plan to get the state-run city OTB out of the red is expected to take shape over the coming months.

DC 37 Executive Director Lillian Roberts spoke at the signing of the order: “DC 37 is committed to working with Governor Paterson and the Legislature to preserve the operations of NYC OTB and protect the jobs and benefits of the dedicated, hardworking employees,” she said.

“New York City OTB faces a very real and serious financial crisis,” said Lenny Allen, president of Local 2021, which represents more than 1,000 employees. “The DC 37 White Collar Division and Local 2021 are committed to ensuring that our members’ jobs and benefits remain intact. We will work with OTB, the state and any other interested party to achieve that goal while insuring the agency’s solvency.”

In 2008, Mayor Michael R. Bloomberg threatened to close the operation, but Roberts, Allen and Political Director Wanda Williams worked with Paterson and legislators to achieve the state takeover that saved employees’ jobs. However, the move stopped short of revising the distribution formula at the root of the agency’s fiscal shortfalls. While the agency handled over $1.3 billion in bets in 2006 — its highest yet — the formula pays the New York Racing Association, harness tracks and others out of the gross revenue rather than the net, pushing OTB further into debt. By 2009, the agency owed more than $220 million.

NYC OTB handles almost half of all wagers on horse racing statewide. Since 1970 it has generated in excess of $4.5 billion in revenues that help support state and local governments and the NYRA.