NYC-Nassau OTB merger not in cards, sources say

ALBANY - As state leaders rush to bail out the New York City Off-Track Betting Corp., they aren't considering a merger with its profitable counterpart in Nassau County, sources said Friday.

The city OTB, which is owned by the state, said Friday it would delay by one week a planned closure slated for Sunday. About 1,300 workers face termination while the New York Racing Association and horse breeders have warned of disruptions to racing at Belmont Park and elsewhere if city OTB funds dry up.

Having amassed debt of $500 million, the city OTB now hopes to borrow $250 million to reorganize. Officials want to avert a shutdown but admit a long-term remedy is needed to reverse the decline of horse racing. One option is merging metropolitan OTBs.

However, Assemb. Gary Pretlow (D-Mount Vernon), head of the racing committee, said it was unlikely a union with Nassau OTB would be part of a short-term remedy for the city OTB.

"That's not part of the discussion at all," he said.

Assemb. Robert Barra of Lynbrook, the committee's top Republican, said the city OTB had done little to reduce its executive ranks, money-losing locations and large fleet of cars.

A top aide to Gov. David A. Paterson concurred the Nassau OTB merger wasn't under consideration, though he said it could be once the crisis subsides.

Talk of a merger began in November after State Sen. Eric Adams (D-Brooklyn), head of that body's racing committee, introduced a bill establishing the Metropolitan OTB from the Nassau and city operations.

Nassau Republicans denounced the legislation, saying it sought to preserve Democratic jobs after the GOP took over the county executive's office and Legislature. But Nassau Democratic Party leader Jay Jacobs denied involvement.

Senate chief John Sampson (D-Brooklyn) told Newsday on Thursday that he thought the merger was "a good idea. I think it's on the table." Adams wouldn't discuss the negotiations except to say the city OTB would remain open. Nassau OTB declined to comment.

A top aide to Senate Minority Leader Dean Skelos (R-Rockville Centre) said, "We won't let the Democrats siphon money from profitable OTBs in the suburbs to benefit New York City. There is no way that's going to happen."