New York City OTB’s new president and CEO Greg Rayburn has taken his first big step in reorganization of the

company.

He negotiated a deal with its biggest union to provide $12,000 severance payments to some 550 of OTB’s 1,300 workers in return for them leaving employment with the company.

Part of the package includes transferring NYC OTB’s account wagering operations to creditor racetracks in the state, principally Yonkers Raceway and the New York Racing Association. Also part of the plan is for thoroughbred and harness tracks to take a $30 million cut in annual payments.

With the union approving by a 271 to 139 vote, the plan now must be approved by the creditors’ committee, where it faces harness racing opposition, and the bankruptcy court, as well as legislative approval for changes in state law on some of the complex provisions.

(Harness Tracks of America)