Paterson issues order to preserve NYC Off-Track Betting Corp. with possible reorganization

Paterson issues order to save NYC OTB

ALBANY, N.Y. — Gov. David Paterson has signed an executive order that could send the long-troubled New York City Off-Track Betting Corp. to bankruptcy court.

Paterson’s order allows for a financial reorganization in federal court. The order and a subsequent court filing would allow the OTB, an independent public benefit corporation, to cut labor costs with its unions, install less expensive automated betting machines and break some leases.

Paterson says the move is designed to save the corporation. Despite taking in $1 billion a year in bets on horse races, the New York City OTB has consistently posted losses.