THE ASSEMBLY STATE OF NEW YORK ALBANY

COMMITTEES Banks Cities Consumer Affairs and Protection Environmental Conservation Racing & Wagering Steering

MICAH Z. KELLNER 65th Assembly District

May 4, 2013 FOR IMMEDIATE RELEASE

Contact: Brice Peyre Office: (212) 860-4906 Cell: (917) 848-3638

On Kentucky Derby Day, Assemblyman Micah Kellner Touts Bill To Let Betting Machines Return to New York City Bars
As the Worlds Most Famous Horse Race Is Run Today, New York City Will Again Lose Out On A Revenues That Could Fund Public Schools New York, NY On the day of the Kentucky Derby the most famous horse race in the world Assembly Member Micah Z. Kellner (D-Manhattan) announced that he is introducing legislation to allow pari-mutuel betting machines at New York City bars where they were previously installed before the closure of the New York City Off-Track Betting Corporation (OTB) in 2010. Assemblyman Kellners bill will further require a substantial part of the revenue generated by bets on the machines be allocated to New York Citys public education budget. He announced the introduction of his bill at the Playwright Irish Pub near Herald Square in midtown Manhattan, where a pari-mutuel machine had been operated before OTBs closure. New Yorks students are being scratched from the race for a better education because government leaders cant even get out of the starting gate when it comes to maximizing revenue for public schools, said Assembly Member Kellner, a member of the Assemblys Racing & Wagering Committee. As the most fabled horse race in the world is run today, its time to step up the pace to maximize this sizeable potential revenue source for our citys public schools. With countless New Yorkers seeking to place casual bets legally and simply at their local neighborhood bar, New York State needs to take the bit between its teeth and move to allow pari-mutuel machines back into the taverns where they were previously operated without incident. Before OTB closed, pari-mutuel machines were installed in six bars in New York City where patrons could place bets on horse races. Ever since OTBs closure, New York City residents seeking to place wagers on horse racing events have been relegated to leaving the five boroughs and traveling to Aqueduct or Belmont or to gambling illegally in the City, fueling revenues for organized crime that otherwise could be allocated to New York State aid for public schools. Traditionally, the Derby itself brought in $5 million on pari-mutuel machines at taverns and restaurants in New York and each year on Derby Day, at least $10 million on all races has
834 Legislative Office Building, Albany, NY 12248 (518) 455-5676, FAX (518) 455-5282 1365 1st Avenue, New York, NY 10021 (212) 860-4906, FAX (917) 432-2983
E-mail: KellnerM@assembly.state.ny.us

typically been generated. Since OTBs closure, the State is losing out on that proven funding stream. Under the terms of the legislation being introduced this week by Assemblyman Kellner, parimutuel machines on which wagers could be placed on horse races only would be allowed to return to the six bars in New York City where they had existed previously, with a provision to expand that number in the future to up to 40 establishments in total. When the six bars were previously allowed to host the betting machines he handle of all bets placed on these machines is estimated to be $165 million annually. Under the terms of the legislation being introduced by Assembly Member Kellner, approximately 44% of the revenues derived from the pari-mutuel betting machines would be dedicated toward New York Citys public schools. I applaud Assembly Member Kellner for introducing this overdue legislation. Its a win-win for New Yorkers, with funding generated for our public schools and increased revenues for small businesses like the Playwright Irish Pub, which are losing out on the chance to grow our customer base, meet our patrons needs, and increase our profits. And in this economic climate, thats a trifecta! said John Doherty, Partner and Manager of the Playwright Irish Pub. Assembly Member Kellner is introducing his legislation this week, and hopes to see action on it before the running of the last leg of horse racings Triple Crown, the Belmont Stakes, which takes place on Long Island on June 8th. New York has been home to some of the greatest triple-crown winners in history, and this year, at least one horse with ties to the Empire State, the aptly named Verrazano, is a contender. But you dont need a racing form to tally up the losses caused by this failure to act on the part of New York State government leaders. By continuing to leave this worthwhile revenue-raising proposal at the starting gate, were failing to win, place or show for our school kids, said Assembly Member Kellner. Lets move immediately to put these machines back in our bars and restaurants, where they were operated problem-free before OTB was closed. This weekend, while racing fans all over the country bet over $150 million on the Kentucky Derby, New Yorkers are being doubly deprived by not having a legal way to place bets without these machines in place, and by not having our public schools benefit from the proceeds. This is unacceptable, said Kellner.

FACTS Since OTB closed in 2010, New York City has been losing millions of dollars in annual revenue by not having pari-mutuel betting machines in bars and restaurants. In February of 2012, NYRA proposed putting the machines back into 40 bars and restaurants over a three year period.

 NYRA estimated then that the machines would bring in $165 million in total revenue ($10.5 million for NYRA per year). The Kentucky Derby the most famous race in America generates $150 million in gambling every year nationwide. In New York City, OTB used to collect $5 million on the Derby alone, with a substantial percentage of the revenue raised dedicated toward New York City public school funding. $10 million came in on the all the races run on Derby day. The Playwright Irish Pub estimates that it loses $4 million a year by not having the betting machines in place.
***