Catskill OTB bets on public-benefit model for race course win By BRYAN F. YURCAN

Catskill OTB bets on public-benefit model for race course win
By BRYAN F. YURCAN

Donald Groth is hoping a public-benefit approach would help Catskill Regional Off-Track Betting Corp. land the state’s racing franchise.

The Pomona-based corporation is one of two new companies, along with Thoroughbred Racing-NY, a group headed by Las Vegas real estate mogul Steve Wynn, vying to operate the state’s three largest thoroughbred racetracks: Aqueduct Racetrack in South Ozone Park, Queens; Belmont Park in Elmont, Long Island and Saratoga Race Course in Saratoga Springs.

Groth, president of the Catskill Regional OTB, would seek to run the state’s racing franchise as a public-benefit corporation.

“We think the public-benefit corporation model is consistent with the way this governor thinks.”

Groth’s group joins the four corporations that have already submitted proposals: Empire Racing, Excelsior, Capital Play and the New York Racing Association (NYRA), the nonprofit group that operates the three facilities.

NYRA’s franchise expires on Dec. 31, 2007. It filed for Chapter 11 bankruptcy protection in November, citing at the time that the New York State Lottery Division’s failure to approve the installation of video-lottery terminal (VLT) machines at Aqueduct Racetrack pushed them to insolvency. NYRA has operated the tracks since 1955.

Groth said the Catskill OTB, which runs 26 betting centers in the Hudson Valley and Southern Tier of the state, has an “unmatched record of returning revenues to support government.”

Groth said the corporation would run the racing franchise in the same manner.

“We adhere to what Nelson Rockefeller said … that there should be no gambling without public benefit,” he said.

On Feb. 28, Gov. Eliot Spitzer announced he would convene a panel to publicly evaluate proposals from any entity interested in operating the state-owned racetracks. Each entity will be asked to make a presentation highlighting the elements of their proposal. A schedule for the presentations has not been announced.

“We are awaiting rules, guidelines and advice (from the state) as to what would be the next step,” Groth said.

The Catskill Off-Track Betting Corp. was created by the state of New York and has operated legal wagering continuously since 1976.

Before Spitzer’s call for more proposals, an ad hoc committee of the state Racing and Wagering Board examined proposals from NYRA, Empire Racing and Excelsior.

Excelsior, led by Yankees executive Steve Swindal, was the preferred bidder of the ad hoc committee.

Groth said the ad hoc committee would not review OTB’s proposal.

However, a new panel created by Spitzer will review all six applications starting later this month.

“The fact that additional companies have come forward demonstrates the great appeal and potential of thoroughbred racing in New York,” Spitzer said. “I am eager for the panel to begin its deliberations and make a recommendation.”

The panel, which will meet in public sessions, includes experts from the

State Racing and Wagering Board, Empire State Development Corp. and the Division of the Budget. It is chaired by Richard Rifkin, special counsel to the governor. The Assembly and state Senate will also participate in the sessions.

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