Proposed Bill Would Gut Flow of Slot Money to NY Racing

[Wandering Eyes]

According to a story posted Wednesday on the Albany Times Union's website, two New York state legislators are set to introduce a bill that would cut off most of the money New York racing derives annually from slot machine or video lottery terminal (VLT) profits.

The proposed bill calls for diverting $230 million that annually goes to horse racing and redistribute it to schools, human services and other areas.

As of 2:00 p.m. Wednesday, the legislation had not been formally introduced.

While passage of such a bill might be considered a longshot, it has the potential to have a devastating impact on New York's racing and breeding industries. Currently, about $100 million, or 60% of all purse money paid out annually at the New York Racing Association tracks, come from VLTs.

The legislation is sponsored by Sen. Zellnor Myrie, a Brooklyn Democrat, and Linda Rosenthal, a Democrat from Manhattan.

“The state has been propping up this industry for decades and there is no reason for that to continue, especially when we need the money the state has been giving to the industry,” Rosenthal told the Times Union.

Rosenthal and Myrie have the backing of animal rights groups, including NYCLASS, which has led the way in the effort to ban carriage horses in New York City.

The group's account tweeted Wednesday: “New legislation will redirect $230M in annual horseracing industry handouts & invest in our communities. Thank you Sen. @zellnor + AM @LindaBRosenthal for working to end this shocking corporate welfare for an abusive industry.”

The New York Racing Association was quick to denounce the effort Wednesday.

“NYRA will vigorously oppose this legislation in order to protect jobs for working families, preserve the horse racing economy and ensure the sport's success now and in the future,”  NYRA spokesman Pat McKenna said in a statement. “Racing support payments are not subsidies. The payments from VLT revenues are made to the Thoroughbred industry in part because NYRA transferred land and other intellectual property to the state in 2008, and has acted as the steward of the properties in the years since. The VLT payments are compensation for that transaction rather than subsidies. These payments further the sport's ability to serve as an economic engine–particularly in support of the tourism and hospitality industries, which have suffered significantly due to the COVID crisis.

“NYRA looks forward to the opportunity to engage New Yorkers and lawmakers in a real conversation about the massive industry connected to horse racing throughout the state. This is precisely why NYRA joined We Are NY Racing, the diverse coalition launched in September in support of horse racing.”

McKenna went on to label the animal rights activists as extremists.

“Organizations like NYCLASS, PETA and Horseracing Wrongs have long been philosophically opposed to horse racing and make no secret of their desire to end the sport,” he said. “This extreme agenda would deprive working families of jobs and opportunity and would negatively impact union and hourly workers at the worst possible time. Rather than a rational public policy disagreement, these groups are only interested in how best to damage horse racing to further their own political agenda. These groups are completely out of touch with the concerns of working families here in New York, and they cannot be trusted.”

Joe Appelbaum, the president of the New York Thoroughbred Horsemen's Association, signaled that he is ready for a fight.

“We will vigorously defend that money that came to our location,” he said. “I wouldn't come to your kitchen and use your kitchen without compensating you for it. Would I? We've had these challenges and attacks on our supplemental funding before. We plan to meet them with complete education process with our coalition partners We Are NY Racing. This isn't the first time someone has tried this.”

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