The New York racing and breeding industries are in crisis after the long-awaited deal to name an Aqueduct gaming operator fell through last week.  The news comes soon after New York’s Off Track Betting Corporation (OTB) was declared bankrupt.

The proposed Aqueduct racino, which would have included 4,500 poker machines, would have given the New York Racing Association (NYRA) the funds needed to boost prizemoney and make much-needed capital improvements.  

To make matters worse, the New York Breeding Fund cannot send out last year’s cheques as scheduled because the New York City OTB owes it so much money.

Two of New York’s leading breeding farms have already closed and many owners are taking their horses to Monmouth Park, Pennsylvania and Canada where poker machines have boosted purses and breeder awards.

New York’s flagship Saratoga meeting in August is also in jeopardy because the NYRA needs the statutory payments it receives from the New York City OTB.  Before declaring bankruptcy, OTB owed NYRA $15 million.

OTB Chairman Meyer Frucher warned the company might close unless the State legislature acts quickly to restructure the OTB business model.