Guv investigates NYRA over unpaid winnings

ALBANY -- The Cuomo administration is investigating the New York Racing Association over $8.5 million in winnings that didn't get to bettors.

The probe comes as Gov. Andrew M. Cuomo seeks to expand gambling and allow a casino developer to build the nation's largest convention center at Aqueduct racetrack, which is operated by NYRA along with Belmont and Saratoga.

The state Racing and Wagering Board's interim report released yesterday said NYRA's management miscalculated winnings paid over 15 months. The report claims NYRA, a private entity that holds the state's racing franchise, knew it was shortchanging bettors by extracting inaccurate "take out rates" from winnings and still did nothing about it, a claim NYRA disputes. The report also said NYRA tried to keep the information from the public, including asking a reporter to keep the info out of a newspaper.

"The report raises serious questions about the actions of senior management of NYRA," wrote Robert Megna, Cuomo's budget director and chairman of the state's Franchise Oversight Board, in a letter dated Sunday. "This is not an isolated instance . . . a failure to meet this most fundamental obligation puts into doubt the continued efficacy of the state's franchise agreement with NYRA."

The Cuomo-appointed racing committee would oversee the sport if NYRA's franchise is dissolved.

NYRA officials told the Racing and Wagering Board that the issue was the result of an inadvertent error. NYRA didn't immediately respond to a request for comment yesterday.

"It was shocking to me," Cuomo said of the report, noting it has been referred to the inspector general.