Professor Elam

Wed April 14 2010

Here is one for the ‘now I have heard it all department.’
Yes the

New
York City Off Track Betting Corp OTB

is in Federal Bankruptcy Court under Chapter 9. But it gets
worse!  The New York Racing Association,
a creditor, has asked the case be thrown out, saying OTB does not have any real
business prospects!  To OTB credit,
the state, acting like the protection racket it really is, demanded higher
payments, another $7.8M a year. The result, the golden goose is cooked.

We have written extensively about the looming municipal debt
crisis, here is an example that a state legislature cannot run a monopoly
bookie operation and stay solvent. Worse yet to come….