New Study Challenges Claims of Racetrack Gambling Lobby in New York
According to a study that will be released today, the state of New York should sell its three thoroughbred racetrack gambling sites, as well as its stake in video lottery terminals and off- track betting to the highest bidder. New York could stand to profit by this action, the study says, by more than $2 billion.
The study was carried out by the Maryland Tax Education Foundation, which is a not- for profit group based in Maryland that conducts research focused on issues that affect taxpaying voters. The foundation decided to study the racetrack gaming industry in New York for the purpose of comparison with Maryland, which is facing similar choices that regarding its own racetrack gambling industry. Jeffrey Hooke, an investment banker who heads the organization, and Thomas Firey, the editor of a publication of the Cato Institute, a libertarian think tank, headed the study.
The study was carried out in part to refute a previous report by the Friends of New York Racing, a group that lobbies for the interests of the racetrack gambling industry. Their report argued that the racetrack industry is worth $450 million, and that it provides 35,000 jobs for people in New York State. The Friends of New York Racing report advised New York lawmakers should help out the racetrack gambling industry with millions of dollars in subsidies.
The Maryland Tax Education Foundation refutes this assumption, saying that it is preferable to simply sell the gambling industries instead of propping them up with subsidies that are ultimately paid for by the taxpayers of the state.
An excerpt from the report reads as follows:
"Clearly, the state of New York and its citizens benefit from a rich thoroughbred tradition, VLTs, OTB, and related economic activities," the study states. "However, before providing a massive wealth transfer that may or may not be applied to horse racing improvements, state policymakers should examine other less costly, and perhaps more effective, means of supporting horse racing and horse breeding and last, but certainly not least, the state treasury."
"The question is one of balance," the report also said. "Certainly, the state wishes to protect the New York horse racing industry, but it must do so in a way consistent with safeguarding the greater interests of taxpayers."
The writers also contested the horse gambling lobby group’s assessment of the number of in- state jobs generated by the horse gambling industry, putting the number at a more modest 7,000.
The report comes at a time when New York is planning to put the gambling racetracks in
Aqueduct, Belmont and Saratoga up for bid. They have been operated since 1995 by the not- for- profit group New York Racing Association. However, the organization has proven to be ineffective financially, plagued by deficits and scandals. The NYRA currently faces over $100 million in debt.
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New Study Challenges Claims of Racetrack Gambling Lobby in New York
According to a study that will be released today, the state of New York should sell its three thoroughbred racetrack gambling sites, as well as its stake in video lottery terminals and off- track betting to the highest bidder. New York could stand to profit by this action, the study says, by more than $2 billion
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