7/30/2019 Assembly Member Kellner Introduces Bill to Allow Betting Machine Revenues to Support Public Schools

1/3

MICAH Z. KELLNER65thAssembly District

THE ASSEMBLYSTATE OF NEW YORK

ALBANYCOMMITTEES

BanksCities

Consumer Affairs and ProtectionEnvironmental Conservation

Racing & WageringSteering

May 4, 2013 Contact: Brice Peyre

FOR IMMEDIATE RELEASE 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), a member of the Assemblys Racing &Wagering Committee, announced that he is introducing legislation to allow pari-mutuel bettingmachines at New York City bars where they were previously installed before the closure of theNew York City Off-Track Betting Corporation (OTB) in 2010. Assemblyman Kellners bill willfurther require a substantial part of the revenue generated by bets on the machines be allocated toNew York States public education budget. He announced the introduction of his bill at thePlaywright Irish Pub near Herald Square in midtown Manhattan, where a pari-mutuel machinehad been operated before OTBs closure.

New Yorks students are being scratched from the race for a better education becausegovernment leaders cant even get out of the starting gate when it comes to maximizing revenuefor our public schools, said Assembly Member Kellner. As the most fabled horse race in theworld is run today, its time to step up the pace to maximize this sizeable potential revenuesource for our citys public schools. With countless New Yorkers seeking to place casual betslegally and simply at their local neighborhood bar, New York State needs to take the bit betweenits teeth and move to allow pari-mutuel machines back into the taverns where they werepreviously operated without incident.

Before OTB closed, pari-mutuel machines were installed in six bars in New York City wherepatrons could place bets on horse races. Ever since OTBs closure, New York City residentsseeking to place wagers on horse racing events have been relegated to leaving the five boroughsand traveling to Aqueduct or Belmont or to gambling illegally in the City, fueling revenues fororganized 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 andrestaurants 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

7/30/2019 Assembly Member Kellner Introduces Bill to Allow Betting Machine Revenues to Support Public Schools

2/3

typically been generated. Since OTBs closure, the State is losing out on that proven fundingstream.

Under the terms of the legislation being introduced this week by Assemblyman Kellner, pari-mutuel 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 toexpand that number in the future to up to 40 establishments in total. When the six bars werepreviously allowed to host the betting machines he handle of all bets placed on these machinesis estimated to be $165 million annually. Under the terms of the legislation being introduced byAssembly Member Kellner, approximately 44% of the revenues derived from the pari-mutuelbetting machines would be dedicated toward New York States public schools.

I applaud Assembly Member Kellner for introducing this overdue legislation. Its a win-win forNew Yorkers, with funding generated for our public schools and increased revenues for smallbusinesses like the Playwright Irish Pub, which are losing out on the chance to grow ourcustomer 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 is urging action on itbefore the running of the last leg of horse racings Triple Crown, the Belmont Stakes, whichtakes 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. Butyou dont need a racing form to tally up the losses caused by this failure to act on the part ofNew York State government leaders. By continuing to leave this worthwhile revenue-raisingproposal at the starting gate, were failing to win, place or show for our school kids, saidAssembly Member Kellner.

Lets move immediately to put these machines back in our bars and restaurants, where theywere operated problem-free before OTB was closed. This weekend, while racing fans all over thecountry bet over $150 million on the Kentucky Derby, New Yorkers are being doubly deprivedby not having a legal way to place bets without these machines in place, and by not having ourpublic 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 machinesin bars and restaurants.

In February of 2012, NYRA proposed putting the machines back into 40

bars and restaurants over a three year period.

2

7/30/2019 Assembly Member Kellner Introduces Bill to Allow Betting Machine Revenues to Support Public Schools

3/3

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.

$10 million came in on the all the races run on Derby day.

Playwright Irish Pub estimated that horse race gambling generated $4

million a year in revenue at its establishment alone.

* * *

3