Release #382-00

 

Contact:	Sunny Mindel/Curt Ritter 212-788-2958
	Gregory Miley/Janel Patterson 212- 312-3523 (EDC)

MAYOR GIULIANI ANNOUNCES CITY WILL ISSUE REQUEST FOR PROPOSALS FOR THE SALE OF THE NEW YORK CITY OFF-TRACK BETTING CORPORATION

Mayor Rudolph W. Giuliani today announced that the New York City Economic Development Corporation (EDC) will issue a Request for Proposals (RFP) for the sale of the franchise and operations of the New York City Off-Track Betting Corporation (NYCOTB). Today's announcement follows the Request for Expressions of Interest (RFEI) EDC issued this past July. As a result of the interest expressed by many top industry leaders, including Churchill Downs Incorporated, NYRA and TGV Cable Network, Penn National Gaming Incorporated, Greenwood Racing, and Magna Entertainment Incorporated EDC issued today's RFP.

"This is the last important step in the turn around of OTB, which was once considered the only money losing bookmaker in town," said Mayor Giuliani. "Thanks to my Administration's efforts, OTB is once again generating money for New York City. Just this past fiscal year, for only the second time in its 30-year history, OTB reached $1 billion in wagering, an increase of $60 million in wagering over fiscal year 1999. This RFP will ensure that the City finds a suitable buyer to own and operate OTB, and will serve as another example of my Administration's efforts to privatize various City-owned operations that would be better off in private hands. I want to thank OTB President William Carnevale, Corporation Counsel Michael Hess, and EDC President Michael Carey for their efforts in issuing this RFP."

Organizations can receive copies of the RFP by calling EDC at 212-312-3939, or by sending an e-mail to the Economic Development Corporation and typing 1100-OTB in the topic line of the e-mail. Organizations must submit their proposals to The New York City Economic Development Corporation, c/o OTB-RFP, 110 William Street, New York, NY 10038 by 2:00 PM Friday, November 10, 2000.

"This RFP exemplifies Mayor Giuliani's commitment to privatizing City-owned operations," said EDC President Michael G. Carey. "The quality of responses we received to our earlier RFEI indicates that there is tremendous interest in this initiative, given NYCOTB's restored success and profitability."

David Cornstein, Chairman of the Board of OTB, said, "We have experienced great success in the six years since the Giuliani Administration decided to operate OTB like a private sector business rather than a quasi-governmental agency. This decision has enabled the City -- as well as the State, other units of local government and the racing industry -- to reap increased financial benefits from OTB's activities. Now it is time to take the process one step further and privatize off-track betting in New York City."

Michael Hess, Corporation Counsel and Vice-Chairman of the Board of OTB, said, "Today's announcement is a critical next-step in the City's efforts to find a private organization to operate and manage OTB. Over the past six years OTB has undergone significant changes. The number of people visiting and wagering through OTB has grown and, as a result, OTB's overall profitability has increased. OTB is ready to be sold and I am confident that the City will be pleased with the results of our privatization efforts."

The NYCOTB consists of 68 betting parlors, three teletheaters and four restaurant-sports pubs, with plans to add up to eight additional sports restaurants in 2001. It owns warehouse, distribution and printing facilities, as well as an automotive and betting system equipment repair center. In addition, it has more than 1,000 full-time employees, 500 part-time employees, and 300 per diem employees.

It is currently installing a state-of-the-art fiber optic communications system that, once completed, will provide enhanced product displays and allow NYCOTB to accept wagering from worldwide racing venues.

NYCOTB's racing calendar includes events from Aqueduct, Belmont, Saratoga, Yonkers and Monticello, as well as from Cal Expo in California, Prescott Downs in Arizona, Emerald Downs in Washington State, Sam Houston in Texas and the Meadowlands in New Jersey. NYCOTB also accepts wagers on special events from Canada, Australia, England and France.

www.nyc.gov