It has been reported that New York City Off-Track Betting, which filed for Chapter 9 bankruptcy this past December, may be thrown a lifeline from the State Assembly
. The company has handed out pink slips to 1,300 employees and has said that it will close the doors to its 66 locations this Sunday (April 11).
According to an article by NY Daily News, the Assembly is in scramble mode to arrange an agreement which would see NYCOTB's management and 'employment ranks' thinned. The report also indicates that the plan may see the compulsory payments NYCOTB has to make to the state racing industry reduced by 10 per cent.
The report cited Assemblyman Gary Pretlow as saying that "we (the Assembly) have to do something before the middle of next week, otherwise OTB goes out of business totally."
Pretlow was also cited as saying that he wants to see a new Board to oversee NYCOTB. The Assembly is reported to be proposing the bailout package as a 12-month plan before a long-term solution can be found.
Regarding his stance that a new Board is needed at NYCOTB, Pretlow's comments were rather frank. "What's there now I don't trust to undertake the reforms that are needed. I think we need to do a housecleaning from the top to the bottom there."
(With files from NY Daily News)