NYC Counsel Warns Of OTB Retirees Losing Benefits

ALBANY, N.Y. (AP) — New York City’s attorney warned that with New York City Off-Track Betting Corp. trying to close permanently, its retirees face losing medical benefits that were reimbursed by OTB unless the state steps in.

Corporation Counsel Michael Cardozo said the City cannot be called on to bail out the state’s public benefit corporations. The OTB filed a motion to withdraw its bankruptcy reorganization petition Wednesday, saying it plans to close.

Officials said about 900 retirees would be affected. Their insurance costs about $6 million a year.

Under a 2008 law, the state took over the financially troubled city OTB. The state Senate last week failed to pass a reorganization plan.

Cardozo said retiree benefits could end Jan. 1. About 1,000 employees are losing jobs.

(Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • ATTABOY123

    The time finally came for shutting it down. No more public/taxpayer bailouts or keeping the money loser afloat. The affected neighborhoods are a lot quieter and better off. If people want to bet on the ponies, let them go directly to the tracks-LET THEM GO ALREADY

  • jeff

    To Robert from Jeff, former OTB employee. Apparently you were one of our customers. I for one served every customer who frequented my window and gladly gave them whatever they asked for even when they were nasty, arrogant, selfish, self-centered, and suffered from halitosis. I already secured another job. Hey, who you betting with now.

  • Fred

    A sad ending indeed.

  • c smith

    Albany does not care. We must get rid of all of them next election.

  • Mad

    I am one of the thousand that got laid off . I worked for this corporation 16 yrs for what to be thrown in the street. Now its the retirees what’s next. Thank you Governor , Mr. Larry Schwartz for closing OTB.and all those Senators that voted no.

    • Robert

      If you ask me the OTB employees got what they deserved. Too many OTB employees were nasty, sarcastic and lacked good customer service skills.
      Eventually your bad attitudes and lousy service catch up to you…. Good riddance!!

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