Paterson asks lawmakers to save city OTB from shutdown

ALBANY - In advance of Monday's special legislative session, a top aide to Gov. David A. Paterson implored lawmakers Sunday to approve another bailout of the New York City Off-Track Betting Corp. or else watch it close next month.

Lawrence Schwartz, gubernatorial secretary and OTB board chairman, said betting parlors throughout the city would close in the next five weeks and horse racing tracks such as Belmont Park would be imperiled unless the reorganization is adopted during this afternoon's session. Between 700 and 800 OTB workers in the city would receive pink slips Tuesday.

Schwartz said he wasn't trying to "intimidate" lawmakers. "This is just a financial and legal fact of life that if we don't get this kind of relief . . . the corporation will have no other choice but to shut down," he added.

The shutdown warning was at least the third in five years. New York City OTB, now owned by the state, is trying to emerge from bankruptcy.

Unlike earlier plans, this one doesn't call for a merger of NYC OTB with its suburban counterparts. There would be no impact on Long Island's OTBs if the reorganization is adopted, NYC OTB chief executive Greg Rayburn said Sunday.

NYC OTB's problems have been blamed on fewer people going to betting parlors, less interest in horse racing and lavish spending for OTB executives' perks. Rayburn has dismissed many of those officials, closed nine unprofitable betting parlors and trimmed the workforce.

The proposed bailout calls for more job cuts, fewer racing days at some harness tracks, less financial support for those tracks and the takeover of New York City OTB's telephone and Internet betting operations by the New York Racing Association and harness tracks.

Should lawmakers fail to act Monday, Rayburn said, the consequences would be "devastating" for New York's horse racing industry and related businesses, which together employ 40,000 to 70,000 people. He also said the state would be liable for $504 million in health and retirement benefits owed to NYC OTB workers and $100 million to creditors.

Legislative leaders, through aides, pledged Sunday to review the proposal.

In the narrowly divided State Senate, Democrats will need GOP support to pass bills because of the absence of several members. A spokesman for Minority Leader Dean Skelos (R-Rockville Centre) said "the conference will review" the plan.