NYC OTB
The Alternatives
An NYC OTB bettor tells WNYC what he’ll do without his favorite parlor:
Now that he has more free time, Lopez says he’ll probably read more books and occasionally make a visit to the racetrack.
Note that he didn’t say he’d take up slots, scratch-off tickets, poker …
Unsurprisingly, OTB customers are cleaning out their accounts. “[S]ources say the accounts have been sharply draining down 48 hours now since the OTB closed its doors,” reports the Blood-Horse.
Day 2 Post-NYC OTB
Aqueduct numbers year-to-year, week-to-week, and day-to-day:
On the second day without NYC OTB, on-track attendance was still up, and on-track handle spiked by almost 11% over Wednesday, 12.8% over the previous Thursday. Interstate handle declined from the day before, but was up a tiny 1.3% over last Thursday. The ugly number is intrastate handle, which was down 4.6% over Wednesday, and almost 39.1% from last Thursday. How much of that was money moving? The difference in on-track handle from Wednesday to Thursday is plus $53,125; intrastate handle minus $40,000. If most of the upped on-track dollars were formerly intrastate wagers, then NYRA made gains, even if small. Over on LATG, Alan Mann estimates that NYRA needs to “capture one-third of the wagers placed on its races at NYC OTB in order to break even,”* and it does seem as though they’re doing all they can to grab those bettors, if the flurry of press releases sent out today is any indication, offering double points to customers signing up for NYRA Rewards before December 31, opening up Belmont for simulcasting beginning this Sunday, and looking for a way to get the races back on TV in the city.
In a comment yesterday, EJXD2 said, “I wish people would stop lamenting the death of NYC OTB and instead celebrate that a corrupt system is no more.” Fair enough. Huzzah! NYC OTB is dead! But there’s not much time for lamenting or celebrating. John Pricci called December 7, “the beginning of the end of the modern era of racing in New York,” and while we may not look back on that as such a bad thing, given how troubled the era passing became in its latter days, there’s pain ahead due to lost livelihoods and inevitable structural changes. The bright side (really) is now that closure has come to pass, and action is necessary before the whole industry goes broke, New York has an opportunity to blow up the dysfunctional OTB system and replace it with a streamlined operation** better suited to supporting racing in the contemporary market, which means efficient management and an approach to customers that’s less get-your-fix and more have-great-fun. It won’t be easy, but it must be done.
*8:15 PM Update: Talking to reporters in the Aqueduct press box this morning, NYRA CEO Charles Hayward confirmed that’s about right: “Hayward estimated that NYRA has to try and make up for 35 percent of what NYCOTB handled at its parlors because only 2.4 percent of each dollar wagered at an OTB parlor goes to NYRA, compared with 10 percent of each dollar wagered ontrack.”
**12/10/10 Update: Writes Jerry Bossert in the NY Daily News: “I’m all for it, but it will never happen as there would then be only one President, one vice-president, one director of marketing, etc. It will never fly as there are too many patronage jobs out there currently occupying all those seats in the other five regions.” I fear he’s right — political considerations have held up past attempts at reform — but maybe NYC OTB closing was just the shock needed to make this time different. (Via @BklynBckstretch.)
Day 1 Post-NYC OTB
Crisis has a way of focusing the attention. And so it was that in a matter of minutes, during an emergency meeting of the New York State Racing and Wagering board held Wednesday in the wake of NYC OTB’s closure (audio), it became possible for New York horseplayers to sign up instantly for online wagering accounts instead of in person as previously required. The process was streamlined in an attempt to capture shut-out OTB players. “This is a crisis situation and we’re trying to react because people will find their way to a barber shop or the corner bar [to bet], and that helps no one, not the racing industry or the state,” board chairman John Sabini told the Associated Press. (The silver lining to this mess may be that things get a little easier for horseplayers, although it doesn’t sound like that will be so re: streaming video of races. Disappointing. And dumb.)
David Grening reports in DRF that 61 new NYRA Rewards accounts were opened on Wednesday, presumably by OTB customers who made their way to the track. Aqueduct attendance figures were up, compared to Thursday, December 2 (NYRA canceled racing on Wednesday, December 1) and Wednesday, November 24; handle numbers were down, according to figures reported by the Thoroughbred Times. While average total handle decreased “only” 4%, no doubt aided by a lack of racing in California, Florida, and Kentucky on Wednesday to distract simulcast players, intrastate handle was down more than 36% over December 2 and almost 47% over November 24. A number that didn’t show much of a change was on-track handle. Despite a 26% spike in attendance, on-track handle was up a mere 1.65% over December 2. One of those attending, and probably not betting, was Jesus Leonardo, an NYC OTB stooper profiled in the New York Times earlier this year. In a phone interview with the Times on Wednesday, Leonardo said he plans to keep on stooping, at Aqueduct and other tracks in New York, New Jersey, and Philadelphia.
“OTB was horrible, and horribly run, in many many ways. But the OTB parlors were places like no other and I, for one, will miss them,” writes the blogger Fat Al on The Half-Empty Glass. I will too. There’s no getting around that the storefront parlors were often as unpleasant as their critics alleged, but OTB was a distinct New York City subculture and — this probably reveals something about me I’d rather conceal — the dingy little shops with their oddball collection of characters were some of the few places I ever felt at home in the four years I lived in the city. On particularly unhappy days, I’d slip into a parlor downtown, and enjoy the anonymous companionship of others staring intently at programs and talking horses and hoping for that one big win. “I liked to watch people come in,” Bill Barich wrote in his classic horseplayer’s memoir, “Laughing in the Hills”:
They were intent, blind to their surroundings, and they all looked terrific, at least until the first race had gone off. Optimism put a bloom in every cheek. Anything might happen, could happen, probably would happen, that was the notion being entertained at OTB.
No longer.
Wednesday Notes
NYC OTB closed at midnight last night after the New York state senate failed to pass a bill that would have allowed the company to continue operations. That means no more Channel 71 for racing fans watching at home. Much more seriously, it means more than 800 people out of work, an as-yet-unknown amount of lost wagering dollars, and more than $600 million in added state debt. The situation really couldn’t have been handled any worse. “As bad as OTB was, this was not the time to kill it,” observes Bill Finley. It certainly wasn’t the right way to kill it. But, is this the end? “I’m not ready to write the epitaph quite yet,” writes Alan Mann in his analysis of what happened yesterday. I suspect he’s right. The impact of the shutdown will be felt immediately, giving the state and industry plenty of incentives to revive New York City off-track betting, and maybe even in a form that benefits the game.
Churchill Downs CEO Robert Evans isn’t feeling the gloom. In his keynote address at the UA-RTIP Symposium on Tuesday, Evans found reasons for optimism among horse racing’s challenges, including this stat:
Evans said that racing’s customers still respond to quality, and that if the downsized industry keeps more of the quality product and reduces the poor end that the industry should thrive. To illustrate that point, Evans noted that handle on the top 25 races actually increased 18% in 2009 versus 2003, even as total handle during that period declined 19%.
Interesting. If you think you know the 25 big-event races Evans was referring to, Ed DeRosa has a contest for you. The TDN has Evans’ presentation, which includes his outline for a potential viable business model (PDF).
Dirt racing fans aren’t alone in loathing synthetic surfaces. Turf racing fans also hate synths, and for reasons that are familiar. Alan Aitken writes of the Hong Kong all-weather surface, “a purulent sore on the otherwise peach-like complexion of racing,” on Saturday: “Despite the course running fast, leaders staggered home in very slow sectionals but still held on as if by magic.” Everyone hates it when pace doesn’t play as expected.
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Jessica Chapel writes and edits in Massachusetts. Railbird is a Thoroughbred horse racing blog published from June 2004 to July 2019. More / Contact
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