Aha: Nassau OTB Machines Are at the Big A
Tuesday, February 14, 2017

    After being unable to find any answers last week concerning the relationship of the Aqueduct casino and the Nassau OTB casino, I finally solved the first major question: just where is the Nassau casino? Answer: It's inside the Resorts World Casino New York, or Aqueduct. 

    It seems that in 2013 Nassau OTB was granted the right to offer slots, but protesters and community groups stood in the way of implementation. However, in April of last year, a deal was struck to place 1,000 Nassau OTB machines at Aqueduct, although only 460 have been placed. I don't know why. That boosted the number of machines at Aqueduct to 6,400.

    From what I can determine, without someone clarifying it for me, OTB is not obligated to contribute to NYRA, with one caveat. If revenues at Resorts World decline to to levels of 2013, negatively affecting the horsemen's association, then there will be a contribution. Genting, which owns Resorts World, is managing the OTB machines separately from its own. Then there's a provision that I cannot comprehend, something about "divvying up" $9 million to OTB for two years and $25 million a year after that. I think the writer doesn't understand the meaning of "divvy" and probably meant fork over. 

    P. S. I have now found a December column by Dave Grening in DRF clearing up several points.

    "Under the deal, which was included in the state budget passed last spring, Genting can designate up to 1,000 of its current 5,450 VLTs as belonging to Nassau County OTB. Nassau OTB will receive $18 million from Genting over two years and up to $25 million in the ensuing years, and it will use some of that money to pay down part of its $12 million debt.

    "Meanwhile, racing would only get revenue from those machines if revenue from the other machines falls below 2013 levels. Racing industry officials are estimating the impact could be $16 million to $18 million, with purses taking as much as a $12 million hit." 

    There's the straight scoop.

     Based on industry leaders' comments in Grening's column, nobody was sure at the time just how much the deal was going to affect purses and breeders' awards. One puzzling facet of the extra machines: currently, the Resorts world machines have been generating a profit each day of anywhere from $322 to $398, but the Nassau OTB machines are generating at least double. For the week ending Feb. 4, in fact, the OTB machines generated $1,009. Why are the OTBs doing better than those of Resorts World? That will take a little more detective work.

    P. P. S. I might have read Grening's column in December if the Racing Form didn't cost $11 a day.  


     

    

     

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