Struggling Off-Track Betting Files For Bankruptcy Protection

The New York City Off-Track Betting Corp (OTB), an operator of storefront horse-race wagering parlours, has filed for bankruptcy protection and plans to reorganise after five years and $45m of losses. It expects to close several of its 66 parlours, and hundreds of employees will lose their jobs.

It is thought that the company will shift its operations to phone and online wagering.

OTB filed for Chapter 9 bankruptcy protection, which is available to government-created entities and allows municipalities to reorganise rather than liquidate.

The state took control of the corporation more than a year ago after the city threatened to shut it down due to huge losses.

The reorganisation plan calls for a $250m bond sale to pay debts, and to provide funds to buy new technology and improve betting parlours. The current debt of the company, which handles about $1bn in wagers each year, is about $83m.

According to the Associated Press, Mick Bickford, who tracks bankruptcy filing data at Automated Access to Court Electronic Records (AACER), says there has been no Chapter 9 filing in New York since record began in 1985.