Racetrack Demands $21 Million From OTB

WHITE PLAINS, N.Y. (CN) – Three regional off-track betting companies owe a combined $21 million to Yonkers Racing for commissions from nighttime thoroughbred simulcasting, the racetrack claims in Westchester County Court.




     Yonkers Racing says the New York State Racing and Wagering Board mandates that regional OTBs execute scheduled payments for the right to accept wagers and display signals for out-of-state or out-of-country thoroughbred tracks after 7:30 p.m.
     The payments should be identical to the purses that OTBs make through wagers on out-of-state harness races displayed at night, according to the complaint.
     OTBs also must pay if they simulcast out-of-state races on “dark days” when the New York Racing Association does not conduct live racing, the complaint states.
     Yonkers Racing claims that OTBs for Nassau, Suffolk and Catskill County stopped making the payments in 2004, claiming that the regulation mandating the payments was a misinterpretation.
     Courts, including most recently the state appellate division in December 2008, have upheld the regulation in favor of Yonkers Racing, the racetrack says.
     Yonkers Racing claims that Nassau owes $8.7 million, Suffolk owes $6.5 million and Catskills owes $5.8 million. It alleges breach of fiduciary duty and is represented by Frederick Martin with Bleakley Platti & Schmidt.

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