Catskill OTB to Suspend Horse Betting Operations
Revenue Decline and Shift in Market
KINGSTON, N.Y. (NEWS10) – Catskill OTB, a corporation that offers horse betting through kiosks at 13 bars and restaurants, will suspend all betting operations at the end of November. The decision comes after the corporation brought in nearly $750 million in revenue since its inception, but earnings have been declining due to a shift in the market.
Reasons for Suspension
According to Wanda Williams, the Catskill OTB President, the market began to shift and change with the introduction of VLTs, casinos, and sports betting. The corporation had previously paused operations during the COVID-19 pandemic and moved away from betting lounges to kiosks to cut costs. Despite this, the corporation is only making 6 to 7 cents per racing dollar bet, making it difficult to sustain operations.
Internal and State-Level Changes Needed
Williams emphasized the need for additional products and changes to racing laws that have a detrimental impact on the operation of OTBs. She is looking to make changes internally and at the state level to address the decline in earnings.
State Gaming Commission’s Response
The State Gaming Commission has sent two letters to the President, calling the pause a closure and blaming Catskill OTB for a pattern of mismanagement. The commission has also asked for a formal closure plan. However, Williams has confirmed that this is not a closure, and the kiosks will remain inside bars during the process.
Timeline and Next Steps
Betting will be on pause starting November 30, and the corporation will continue employing its 14 workers during this time. All winning tickets purchased at a Catskill OTB location must be cashed by December 15.
Conclusion
The suspension of horse betting operations by Catskill OTB is a significant development in the region. While the corporation is taking steps to address the decline in earnings, it remains to be seen what changes will be made to the racing laws and how the corporation will move forward.
Frequently Asked Questions
Q: Why is Catskill OTB suspending horse betting operations?
A: The corporation is suspending operations due to a decline in earnings and a shift in the market.
Q: What is the reason for the decline in earnings?
A: The introduction of VLTs, casinos, and sports betting has led to a decline in earnings.
Q: Will the kiosks remain inside bars during the pause?
A: Yes, the kiosks will remain inside bars during the pause.
Q: What is the timeline for the pause?
A: Betting will be on pause starting November 30, and all winning tickets must be cashed by December 15.
