OK, It Appears that NYRA has a LOONNNGGGG Way to Go

The Oversight Borad for NYRA (Where have they been for the last decade?) has issued a report of their review of NYRA, indicating that the out of control spending by NYRA, if it does not abate, will outstrip the income from VLT's.  That is a whole lot of money!

Is this report blowing smoke to make it politically palitable to reign in NYRA, or have things actually been that bad?

The board that oversees New York state’s horse racetracks is urging the New York Racing
Association to take steps to boost revenue beyond video lottery terminals in order to remain in financial health.

The Franchise Oversight Board in an extensive examination of the Adqueduct Racetrack, Belmont Park and Saratoga Racecourse presented its view of the state of the sport, outlined financial improvements due to video lottery terminals and called for efforts to reinvigorate racing.

While the board said video lottery terminals provide a way of supplementing income, it indicated that horse racing itself must be operated in a way that is profitable.

The report, which outlined concerns over the credibility of the sport and growing costs amid declining wagering on races, cited “NYRA’s growing expense structure in the face of declining handle across the industry.”

“This status quo is simply unsustainable,” the board wrote. “If expenses are allowed to continue to grow, not even the substantial investment made by the state into NYRA through the VLT support payments will be enough to cover the losses incurred by NYRA’s operations.”

NYRA in 2011 lost more than $24 million, up 40 percent from a $17 million loss in 2010, despite a $6.3 million infusion from the introduction of video lottery terminals at Aqueduct. NYRA’s growing salary and fringe benefits, according to the report, helped boost general and administrative expenses by 14.7 percent or $20.9 million in 2011.

NYRA projects $18.9 million in profit for 2012, due to $20.6 million in payments from VLT proceeds and $27.5 million in VLT capital funds, according to the report.

http://libn.com/2012/07/06/ny-tells-nyra-to-look-beyond-vlts-for-revenue/