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Host Intro: Last weekend, Big Brown won the Kentucky Derby. Now, the question is if he'll take the Triple Crown. To do it, he must win the Preakness and the Belmont Stakes. No horse has accomplished this in 30 years. These are the biggest races of the year, but it may be the last chance for residents of the City to bet on them without leaving the Big Apple. All of the city's off track betting outlets are scheduled to close on June 16. Jed Kim reports that there's more at stake than just exactas and perfectas.
It's the weekend, which means it's busy at the Times Square OTB parlor. That's off track betting for those who don't know. About a hundred people gather around the television sets to yell at their horses.
[Post sound and crossfade it with street ambi over next block]
John Brown is outside taking a quick cigarette break between races. He says he comes everyday and stays for 5 or six hours. He's been coming for about thirty years.
AX[Brown]: Yeah, I win all the time, but not big. Not big. (:04)
There are about 70 OTBs in New York City. You can find one in almost every neighorhood. OTBs are places to make money - at least theoretically. They're also gathering places where people can go to commiserate about their luck.
AX[Brown]: I don't work. I just play horses. All who come inside here - they know me. This is where I see them, right here. When everybody gone, I don't see nobody. (:12)
Brown finishes his cigarette and hurries back inside for the next race. Inside, people line up at the tellers or at automated screens to place their bets on races around the country. OTBs are convenient, because they allow people to make bets without going to the track. That's changing. New York City OTB has announced that it plans to close all operations on June 16. That's when the corporation projects it will run out of money. NYCOTB is a public benefit corporation set up by the state. If it closes down, it will mean a significant loss of money for the city.
AX[Casey]: You know, New York City OTB generates 250 million dollars in revenue every year. (:05)
Raymond Casey is the president and CEO of New York City OTB.
AX[Casey]: So there's more than enough money to operate the business and return hefty sums of money to the industry, the state and the city. It's just that you have to have a reasonable model so that everybody gets an equitable portion of the money. (:13)
NYCOTB takes over a billion dollars in bets each year. 80 percent goes to winning bettors. State law mandates what portion of the remaining money goes where. The racing industry gets the lions share of what's left; then there are hefty payments to the state, and the city. All said, that's well over a hundred million dollars. The amount that's leftover isn't enough to pay OTB's fifteen hundred employees and other operating costs. Casey says he's hopeful that lawmakers in Albany will reduce how much money is portioned out. Meanwhile, his office has closed four locations and sent out notices of termination to employees.
AX[Casey]: Everyday there is irreconcilable damage that is being done to the business, because we don't have a solution. (:06)
A study by the Boston Consulting Group said that the state, city and racing industry can't afford to lose the economic contributions that OTB provides. Those aren't the only things that'll be hurt. Edmund Goliszewski is one of the OTB employees who stands to lose his job. He has worked for NYCOTB for 27 years. He says it might be difficult for him to find a new job, but he doesn't really think he'll need to.
AX[Goliszewski]: Let's put it this way - a little common sense - I don't think … I wouldn't want to throw away a billion dollars in ten years, you know. If you don't want the money, give it to me. (:11)
The entire horseracing industry is seeing a decline in interest. The New York Racing Association, which manages New York's racetracks announced bankruptcy last year. The crowds at the track are dwindling.
[start ambi of OTB restaurant]
Still, there are some races that will always bring out the crowds. On the day of the Kentucky Derby, hundreds of people cram into an OTB restaurant in Manhattan. Brian Jordan is one of hundreds of people waiting in line to place a bet.
AX[Jordan]: So it's a lot of exciting feelings, it's a sense of cameraderie. Whether I win or lose, it's a lot of fun to be here. (:05)
When the race finally begins, there isn't an empty seat in the house.
[post sound of race]
If NYCOTB does shut down, it may be on a pretty good year. Casey's office reported that it did ten-and-a-half million dollars in business on Derby day, the third biggest day in its 35-year history. Jed Kim, Columbia Radio News.