....January 21, 11:50 PM
 
 
   
Markey Slams OTB’s Expansion Solution

By Domenick Rafter

New York City OTB’s proposition to add as many as 1,300 betting kiosks citywide, and about 260 throughout Queens, in bars, restaurants, bowling alleys and other public places is sparking intense controversy among some local officials.

OTB Chairman Sandy “Meyer” Frucher proposed the plan at a state Assembly hearing Jan 8.

“Believe me, if I could come up with another way of harvesting the revenues, I would do it,” Frucher said at the hearing.

OTB declared Chapter 9 bankruptcy in December and has been exploring ways to raise money to close its $95 million debt, which continues to rise. Under the bankruptcy, OTB needs permission from the state legislature to restructure their business plan before they run out of money at the end of March.

The plan to add betting kiosks is meeting resistance with some members of the state legislature who would need to approve such a plan. Assemblywoman Marge Markey (D-Maspeth), a member of the Committee on Racing and Wagering, came out in staunch opposition to such a plan.

“OTB wants to significantly expand gambling in the city as the price for keeping its operations solvent. I say the price is too high,” Markey said. “It’s a 1,200-percent expansion of gambling outlets in the city. It’s totally unacceptable. It isn’t that we don’t want to save OTB, but this expansion of gambling opportunities with all the social problems it can bring may be too high a price.”

Markey cited concerns about access minors may have to gambling kiosks in some places that are frequented by children and teenagers.

OTB responded by taking issue with Markey’s claim that the betting kiosks would represent “a 1,200-percent increase in gambling outlets.” OTB said the number was false, as they were planning on closing “60 percent of their storefronts” and replacing those with the 1,300 kiosks. OTB also responded by saying the locations of the betting kiosks will be a locales where age restrictions and other gambling laws can be fully enforced. In a statement, OTB warned of dire consequences if the state legislature doesn’t act on their recommendations.

“Within two months, NYC OTB will close its doors, hundreds of New Yorkers will lose their jobs and taxpayers will be saddled with $600 million in obligations unless the legislature takes ameliorative action swiftly and decisively,” the statement read. ”NYC OTB has proposed a plan that will transform the business into an economic engine without a single taxpayer dollar. We look forward to continuing a productive dialogue with Assemblywoman Markey and her colleagues in the legislature.”

Reach Reporter Domenick Rafter at drafter@queenstribune.com or at (718) 357-7400, Ext. 125.