Catskill Regional Off-Track Betting Corporation will be shutting down at the end of the month, after almost 50 years of operation. Catskill OTB offered betting on horse racing from locations in the Hudson Valley and on its website, Interbets.
The organization will cease taking bets on November 30, following 48 years of operations. OTBs were popularized as a place to bet on horses before the wagering ban on other sports was lifted and gambling moved to online platforms.
The decision to shut down Catskill OTB follows years of financial troubles at the company. As shown by state records, the organization has failed to turn a profit and has been grappling with mismanagement over the last few years. The company had actually contemplated filing for bankruptcy, according to OTB and state officials.
Catskill harshly curbed its physical footprint after the pandemic. While it used to serve 13 counties in the state, since COVID, the OTB has only taken bets via its website and at a few restaurants as the organization never reopened its betting parlors.
“This is the worst-case scenario for Catskill OTB but shouldn’t be a surprise to anyone who has been paying attention to our plight for the last decade,” said Wanda Williams, President of the off-track betting organization. “Horse racing isn’t growing its fan base and total betting has decreased, so have our revenues.”
Williams said the OTB sought help from the state legislature “for years” and that several bills that would have helped find new revenue sources were passed but vetoed by then-Governor Cuomo, ultimately forcing the organization to shut down this year.
Among the plans that the OTB sought in order to revitalize its business were authorization to expand its business to New York City and a request to offer video lottery terminals, but both were rejected.
Williams further said that the state “would rather see horse racing betting money go to online wagering operations with headquarters in other states and countries rather than keeping 100 percent of that money here in New York State.” The OTB’s closure will also impact several long-time employees, according to a news release.
Since it started in 1976, Catskill OTB generated $746 million to date for the racing industry and government. A total of $354 million was generated for the racing industry, while the state received $81.9 million. Localities where tracks are located received $54.3 million and member counties received $250 million.
A 2018 audit by the state inspector general’s office found Catskill OTB spent millions of dollars to rent warehouses and properties that were “largely utilized for the storage of worthless items and garbage.”
The inspector general’s office also found the corporation’s former president, Donald Groth, collected both a state pension and salary, failed to properly report the use of a company car, and engaged in a longtime relationship with a subordinate employee. Groth denied any wrongdoing in conversation with Times Union.
People with funds in the Catskill OTB/Interbets accounts will be able to access them until December 15, with more information on the brand’s website.
Original article: https://www.yogonet.com/international/noticias/2024/11/21/86088-new-york-state-catskill-otb-shutting-down-after-almost-50-years-of-operation
