Voracious Reading of Handicapping Info
Lands Suffolk OTB Patron in the Winner’s Circle

When he was 15 years old, Suffolk OTB customer and Nesconset resident John O’Neil visited his first racetrack with his brother. The site was Jamaica Raceway and a lifelong love of racing and handicapping took hold. Throughout the 1950’s and 1960’s, O’Neil devoured any handicapping material he could get his hands on. When he is not at Belmont, he enjoys the camaraderie and atmosphere of Suffolk OTB’s VIP Room at the Racing Forum. Located on Motor Parkway in Hauppauge, the Racing Forum is a state of the art facility that offers track odds. Whether at the track or at the Racing Forum, O’Neil’s preferred wager is ‘win’ because there is less take-out.

O’Neil joins Ken Hopkins, who was this year’s first Handicapping Challenge winner. One more handicapping challenge remains in October. The October winner will join O’Neil and Hopkins in representing Suffolk at the Coast Casino’s $1 million Horseplayer World Series in Las Vegas in early 2011.

PHOTO CAPTION: Chris Dempsey, Suffolk OTB’s Deputy Director of Wagering Operations and Services (right), presents the Suffolk OTB Handicapping Challenge trophy to John O’Neil. The Suffolk OTB patron also received a check for winnings in the amount of $5,100.

State Comptroller’s Audit Report Released
Commends OTB’s Cost-Cutting, Revenue Boosting Strategy;
Urges Legislature to Fix Crippling Distribution Formulas

Several of New York State’s OTB corporations reacted to today’s released OTB audit report by State Comptroller Thomas P. DiNapoli with calls for immediate action by state lawmakers. Responding to the Comptroller’s report on the “Financial Condition of New York State Regional Off-Track Betting Corporations,” the Presidents of Capital, Catskill, Suffolk and Western OTBs termed the report “a clear sighted analysis that cuts to the heart of the matter: extensive cost-cutting by OTBs can yield only so much benefit. Without a dramatic overhaul of the current distribution formulas by the State Legislature, the financial viability of these OTBs — as well as their ability to support local government — may be in jeopardy.”

The State Comptroller’s audit follows the release earlier this year of a report made to the Governor by members of the Task Force on the Future of Off-Track Betting. Established as part of the State takeover of NYC OTB in June 2008, the Task Force’s charge was to develop a series of recommendations on how to best utilize the State’s OTB system to raise revenues for local and state governments and strengthen the racing and breeding industries. The Task Force report recommended collaborative efforts by the State’s OTB regions and enactment of legislative change in two areas: regulating out-of-state internet wagering sites and ending maintenance of effort and additional commission payments.

 “After objective review, both the State Comptroller and the Task Force on the Future of Off-Track Betting have reached conclusions markedly similar to those espoused by the Long Island and Upstate OTB regions when it comes to corporate actions under our control and statutory changes that must be made by the State Legislature,” said Suffolk OTB President Jeffrey A. Casale. “For example, the Comptroller recommends that the OTBs increase revenues through the most cost-effective means possible. We agree. That is why three regions — Capital, Nassau and Suffolk — already offer on-line wagering to their customers. Catskill and Western will offer such services in the near future and all five regions are exploring a group internet wagering platform.” Concerning cost-cutting measures to branch operations, several OTB Corporations have already trimmed the number of brick and mortar branches — Capital has converted some branches to self-service locations, Catskill and Western both closed three branches and Suffolk closed two branches — and all four regions reduced hours at several branches.

The Presidents as a group emphasized that no matter how much OTBs cut costs or increase revenue, antiquated and inequitable revenue distributions required of all OTBs place a stranglehold on their ability to thrive. “Especially troubling,” said the OTB Presidents, “is the ripple effect this has on our sponsoring governments and their efforts to hold the line on taxes. That is why it has never been more important than now, in this harsh economy and downturn in handle, for the State Legislature to rectify this out of balance system: overhaul the distribution formulas that force OTBs to turn over millions of dollars to private tracks.”  Found in Table 4 of the Comptroller’s report are the OTB Statutory Distributions (2004-2008). The amount paid to the Racing Industry by the OTBs over this time was $417,920,877, which represented 84% of the total statutory distributions. The stark assessment of the State Comptroller is set out on page 8: “…given the significant amount of the ‘up front’ payments the Corporations must make to the racing industry and government, and the extent to which these payments reduce operating revenues, we believe that the Corporations will be unable to cut expenses fast enough to continue as financially viable entities if no action is taken to reduce these required payments.” (Emphasis added).

John Signor, President of Capital OTB, said that the status quo is unacceptable when it comes to the statutory payments that OTBs must make to the racing industry. “Comptroller DiNapoli did an outstanding job in highlighting the issues that are negatively impacting the racing industry and the taxpayers.  We urge State leaders to follow Comptroller DiNapoli's lead and take action on the issues outlined in the OTB audit that would strengthen the horseracing industry and greatly benefit the taxpayers in New York State."  The Comptroller shone a harsh light on the losses in revenue suffered by local governments as a result of the outlandish distributions that the racing industry extracts from OTBs. From pages 15 and 16 of the Comptroller’s report: “…local governments received 35 percent less revenue in 2008 ($24.4 million) than they did in 2004 ($37.3 million).”

Catskill President Donald Groth said that it is the unfair distributions that push the OTBs into dangerous financial waters. “The current economy is bruising to businesses of all sizes in just about any sector,” said Groth. “As CEOs, we recognize that we must continue to shrink, reinvent and economize our operations. What we cannot tolerate is the fact that no matter how we cut our expenses or grow our businesses, the siphoning by private tracks negates any progress we make.”

Western OTB President Martin Basinait said that the Joint Venture Agreement is the face of off-track betting’s future. “In recasting the suburban OTBs, we have come together to realize a new, more dynamic business model. The Joint Venture Agreement represents our commitment to streamlining operations, while prioritizing customer service. Ultimately, such actions will benefit our sponsoring governments and their taxpayers.”

The OTB Presidents concluded with an appeal for action to the Governor and members of the State Legislature. “We urge you to take a fresh look at the current law as it concerns OTB distributions to the racing industry,” said the four OTB presidents. “The formula is archaic and unfair. Only with a complete overhaul of this system will OTBs return to some measure of fiscal health; able, and more than willing, to increase financial support of local government.”

The State Comptroller’s Office conducted its audits during the first half of 2009, during which they reviewed individual suburban OTB corporations for the period covering January 2004 to June of 2009. Chief among the audit’s objectives was to ascertain whether there was a deterioration of financial conditions at OTB corporations and to assess the actions taken by each OTB corporation to raise revenue and reduce costs. In conducting its analysis, the Comptroller reviewed each OTB’s financial statements, handle reports, statutory distributions and surcharges, operating revenue, operating costs, cost cutting and revenue enhancing measures, branch and self-service/Easy Bet/Quick Bet locations and internet wagering. Finally, the Comptroller evaluated collaborative efforts by the OTB regions, as well as general economic trends.

Handicapping Veteran Las Vegas Bound

An avid horse racing fan for over forty years, Suffolk OTB customer Ken Hopkins has enjoyed participating in handicapping contests for the past twelve years. The father of three is no stranger to winning. As a matter of fact, Hopkins nabbed first-place in the Horse Player World Series at Coast Casino in 2008. Along with his girlfriend Maryjane O’Brien, Hopkins frequents his favorite venue: Belmont Park. When he is not at the track, he wagers on the races at Saratoga, Keeneland and Santa Anita. As a retired New York City Department of Parks and Recreation employee, Hopkins now has the time to pursue his hobby of wagering on the ‘Sport of Kings.’ Hopkins will represent Suffolk at the Coast Casino’s $1 million Horseplayer World Series in Las Vegas. Two Handicapping Challenges remain for June and October. Those winners will join Hopkins when he heads off to Las Vegas in early 2011.

Jockey Calvin Borel Nabs His 3rd Derby Victory in 4 Years;
For Lucky Suffolk OTB Customer, Winnings Top $17,000

(Hauppauge, New York):  Hugging the rail and spraying mud in all directions as he raced to the finish line in his 3^rd Derby win in fours years, jockey Calvin Borel made Super Saver a household name and an early favorite in the upcoming Preakness Stakes on May 15^th. Super Saver’s winning form also marked trainer Todd Pletcher’s first-ever Kentucky Derby victory. For many Suffolk OTB patrons who placed their faith in Borel’s talents, the Derby was a dream come true.

A $20 triple wager made by a Racing Forum customer yielded a payout that stood apart from all others: $17,535. Five customers who visited the Airport, Ronkonkoma, Shirley and Southampton branches turned a $4 triple into $4,394 in winnings. Not far behind were patrons of Commack, Riverhead, Ronkonkoma and Southampton branches, as well as a Qwik Bet customer at Bruno’s in Lake Ronkonkoma. Their payout for a $5 triple wager was $4,120.50 each.

A Centereach branch customer was $3,295.50 richer when a $3 triple came in a winner. Likewise for a Racing Forum patron who put down a $2 triple and was awarded $2,337.40 at the Racing Forum, which is the only branch that pays track odds. The largest number of winners — thirty-two in all — received $2,197.00 each for a $2 triple wager. Those lucky customers visited the Centereach, Commack, Huntington, Riverhead, Ronkonkoma, Shirley and Southampton branches to play the ponies. Several customers placed their wagers by phone and Qwik Bet

locations at Brunos (Lake Ronkonkoma), Main Street Pub (Kings Park) and Napper Tandy’s (Northport) hosted the remaining three $2 triple bet winners.

All told, Suffolk OTB had a total Derby payout of $1,821,530. Suffolk OTB’s handle for the 136^th Run for the Roses was $2,272, 880.

Calvin Borel and Super Saver will travel to Baltimore’s Pimlico Racetrack for the Preakness Stakes on Saturday, May 15^th.  Racing fans everywhere will be watching to see if Calvin Borel, Super Saver and Todd Pletcher come one step closer to winning the Triple Crown.

Suffolk OTB Gives Helping Hand to
Canine Companions for Independence with $7,500 Donation

(Hauppauge, New York): As a result of this year’s Employee Charity Golf Outing, Suffolk Regional Off-Track Betting Corporation (SROTB) donated $7,500 to Canine Companions for Independence.

Each year, Suffolk OTB employees sponsor a charity golf outing that benefits two charities: one a local organization and the second a group that is connected with helping an entity connected with the horseracing industry. The other charity to receive a $7,500 check was The Jockey Club Foundation, which is a charitable trust which confidentially provides financial relief and assistance to needy members of the thoroughbred industry and their families.

PHOTO CAPTION: Pictured in the offices of Suffolk Regional Off-Track Betting are, left to right, SROTB Board of Directors Vice Chairman Herbert G. Hemendinger; SROTB Board of Directors Secretary Eddie S. Wynn, holding Fermer, a black lab/golden cross born on January 11th; SROTB Board of Directors Chairman Dominick P. Feeney; Suffolk OTB President/CEO Jeffrey A. Casale; Debra MacKenzie, Director of Development (Northeast Region) for Canine Companions for Independence; and Katrina Winsor, Canine Companions for Independence Puppy Program Manager, who is holding Aries II, a male yellow lab born on New Year’s Day.

Catskill OTB Signs On To Joint Venture Agreement

OTBs are doing their part, said Catskill OTB President/CEO Don Groth, as he signed his name to the Joint Venture Agreement (JVA) previously announced by his Capital, Suffolk and Western colleagues on Friday. “We want to protect taxpayers and grow this State’s racing industry,” said Groth. “If you live and breathe horseracing and wagering the way we do, then you know that the industry must keep pace with the changing times. There’s a better way to deliver the product of racing and through the JVA we intend to lead the way into New York’s racing future.”

The presidents of Capital, Suffolk and Western OTBs welcomed Catskill’s entrance into the Joint Venture Agreement. “We never doubted that Catskill would join us on this exciting leg of our journey,” said Martin C. Basinait, Western OTB President/CEO and the designated Administrator for the JVA.

“The JVA is groundbreaking on several fronts.  First, the OTBs will be working collectively to provide the best services and racing information to New York horseracing fans.  Secondly, the creation of the new Racing Council will enable New York racetracks and OTBs to work side-by-side to propose and enact innovative steps that will better promote and grow the racing industry in New York,” said John Signor, President/CEO of Capital District OTB.

 “We have concrete proof that joint ventures of this nature work to the benefit of all involved,” said Jeffrey A. Casale, President/CEO of Suffolk Regional OTB. He pointed to Suffolk OTB operating Nassau OTB’s phones and printing as one example. “But there’s also an element of stepping out of previous zones of comfort and charting a path that is both innovative and profitable.”

The four OTB Presidents extended an invitation to Nassau Downs OTB, as well as NYC OTB, to join the JVA.

Lauding the ‘dawn of a new day’, three OTB regions today unveiled a Joint Venture Agreement (JVA) designed to reinvigorate the State’s struggling racing industry. As part of the JVA, the presidents of Capital OTB, Suffolk OTB and Western OTB said that they will engage in cooperative ventures that increase efficiencies, boosting the revenue that the participating OTBs send to their sponsoring counties.

“The JVA represents the future for OTBs and racing in New York State,” said Martin C. Basinait, Western OTB President/CEO and the designated Administrator for the JVA. “Our joint mission is clear: work together to streamline our operations through cooperative projects, support the horse racing and breeding industry and turn over increased revenue to local government, thereby providing some relief to beleaguered taxpayers.”

Jeffrey A. Casale, Suffolk OTB President/CEO, said that the JVA is representative of a new business model, structured to address an association of common interests and independent, local OTB concerns. “Although every racing entity has unique challenges, the New York racing product is the glue that binds us,” said Casale. “The JVA is a comprehensive plan for improving and promoting an industry that is a critical part of this State’s economic recovery.”

John Signor, Capital District OTB President/CEO, said that the fan experience was top of mind when the three OTBs executed the Joint Venture Agreement. “The OTBs that have signed on to the JVA are committed to operating efficient corporations that will benefit both horseracing and local taxpayers,” said Signor. “As a result of the JVA, horseracing fans will see improvements in many areas including a new joint web site, Internet wagering, marketing, video streaming of races and customer service.”

Members of the JVA will roll out a radio campaign over the next two months, with Capital OTB running the first spots next week. The focus of the campaign will be the variety of choices available to racing enthusiasts. For the exciting experience of up-close horseracing, nothing compares with a day at the track. For those who live too far from a track or prefer to do their wagering closer to home, the radio spot touts the fun and relaxing atmosphere of local OTB branches.

According to the three OTB presidents, creation of an independent statewide Racing Council is key to the success of the JVA and any effort to modernize the State’s racing industry. “There is more that unites than divides us. We are committed to channeling that energy into ventures that benefit horseracing, the racing and breeding industry and the State’s taxpayers,” said Basinait, Casale and Signor. “We invite our racing industry colleagues to join with us as we create a blueprint for New York racing that reflects our common interests.” The three OTB presidents have reached out to Catskill OTB and Nassau Downs OTB, as well as NYC OTB.

Concluding with a look ahead to a once-again vibrant industry, the three OTB presidents said that the time to act is now. “We urge our racing colleagues to join with us as we create the New York racing industry of the future: fan-friendly, efficient, and focused on providing substantive relief to our local taxpayers.”

In addition to the creation of a statewide Racing Council, other highlights of the Joint Venture Agreement signed by Capitol, Suffolk and Western OTBs:

(1) Common Web Site Access for Customers of Participating OTBs

One central web site with a common skin so that racing patrons could visit one site to learn about individual OTBs and JVA-run contests.

(2) Common Totalizator (“Tote”) Company

Two options: either contract with one state-wide Tote provider or require the Totes to communicate with each other so that patrons from any participating OTB region would have the option of wagering in any JVA member’s facility.

(3) Statewide Racing Television Station

Capital District OTB presently has a television signal. A statewide racing television station would display in all branches of JVA participants, with the purpose of disseminating information about horseracing and the racing and breeding industry in New York State.

(4) Statewide Internet TV station

Would coexist with a statewide horseracing television station and allow patrons to view horseracing via the Internet.

(5) Statewide Marketing Campaign

A joint marketing program that would promote New York horseracing and wagering.

(6) Upstate and downstate phone wagering center(s)

Two phone centers would net cost savings by reducing duplicative efforts and protect each OTB region’s operations in case of failure at either location.

Suffolk OTB Employee Charity Golf Outing:
$7,500 Donation Benefits Jockey Club Foundation

As a result of the 2009 Employee Charity Golf Outing, Suffolk Regional Off-Track Betting Corporation (SROTB) donated $7,500 to the Jockey Club Foundation, which is a charitable trust providing — on a confidential basis — financial relief and assistance to needy members of the thoroughbred industry and their families. Since 1985, the foundation has helped over 1,000 individuals and their families with more than $12 million in support.

Suffolk OTB employees held their most recent outing at Hamlet Wind Watch Golf and Country Club in Hauppauge. The annual event benefits two charities; one dedicated to helping an entity associated with the horseracing industry and the other a local philanthropic organization. The other charity slated to receive a $7,500 check is Canine Companions for Independence. Located in Medford, Canine Companions provides highly trained assistance dogs to people living with disabilities other than blindness.

PHOTO CAPTION: Pictured in front of the SROTB’s Saratoga Room at the Racing Forum are, left to right: SROTB Board of Directors Vice Chairman Herbert G. Hemendinger; SROTB Vice President Marietta M. Seaman; SROTB President/CEO Jeffrey A. Casale; Executive Director of the Jockey Club Foundation Nancy C. Kelly; SROTB Board of Directors Chairman Dominick P. Feeney and Secretary Eddie S. Wynn.