Power Cap

Power cap- existential handicapping

03 January 2008

NYS corruption scorecard

How many ways has the state government compromised NYRA racing? Is it corruption or ineptitude? Why hasn't the media picked up on this story? The VLT's were approved in 2001 for Aqueduct, why haven't they opened yet?

Lets get a scorecard on the state and see if we are dealing with a bumbler or a schemer. With all of these questions someone should be finding the answers.

1) Pataki blocks slots at NYRA for 3 years. -Would not give final approval for unknown reasons- corruption

2) Minor teller/waiter scandals in 2004-2006 initiated by Spitzer forever cloud NYRA as a corrupt organization in media. -both scandals are pure media designed attention getting fiascoes- corruption

3) Multiple franchise racing approval processes started, finished, ignored and started again - ineptitude

4) OTB continues to leach off the racing industry with bloated staff and political patronage jobs- nothing is done- corruption

5) NYRA Internet wagering delayed for years with red tape, while out of state ADW's allowed to operate and siphon money out of the state- ineptitude

6) Franchise deadline passes with no action-ineptitude

7) Deals signed by NYRA but not rubber stamped by NYSRWB causing more lost revenue- ineptitude

8)NYRA can not offer small perks like free admission for account holders after NYSRWB orders that everyone must pay to enter track- ineptitude

It is clear we are dealing with both corruption and ineptitude. In a state like New York where there is so much wealth and so many educated taxpayers it is surprising that the government is such a third rate operation. The future looks grim in New York and it looks like we are on the crest of a tremendous downward spiral. If the way NY governs racing is a indicator on how it governs the State as a whole it looks like we are cycling back towards the economic and social downtrend of the 1970's and 1980's.

1 comment:

Anonymous said...

NYRA has compromised racing, not the State.

VLT's haven't opened because NYRA went with the wrong manager - MGM Grand (a selection that required statutory change when NYRA ignored the bidding requirements). MGM refused to commence building until a lawsuit challenging the VLT's and Indian gaming was resolved. Several years later, MGM refused to commence building until they extracted a variety of guarantees from the State. Ultimately, MGM just walked away - succeeding in the delay of a facility that would challenge Atlantic City - where they own gaming facility interests. Didn't even cost them anything - their interests are secured in the bankruptcy.

Minor teller scandals? Seems like the U.S. department of Justice, the United States Attorney for the Eastern District of New York and a federal grand jury didn't see it that way. NYRA was indicted. They plea bargained to avoid a trial.

Spitzer bailed on the sole franchise selection process that was commenced. His argument was that the process recommended a too long twenty year franchise and actually considered the integrity of applicants. His pick, NYRA, is supposed to get thirty years and finished dead last in the scored integrity column. Hmmm.

Can't argue with you about OTB. Don't forget, however, that NYRA's esteemed Board of Directors rejected the concept of off-track betting back in the early 1970's. They didn't want any part of it.

NYRA rolled out internet wagering at the same time as Capital OTB. Red tape? Statutory change was required before they could undertake the process.

Can't argue with you on the franchise. Hard to believe the State didn't see this coming ... they only had since 1955 to get ready.

Rubber-stamped? You mean actually following the law? What a concept.

Perks? NYRA can offer any perks they like pursuant to law. If the law says you cannot offer free admission, NYRA could still do so by picking up the admissions tax themselves. That's how the casinos in Atlantic City operate. There is a state tax charging two dollars for parking. Some casinos allow free parking and pay the two dollars themselves. NYRA, however, is not known for doing things for their patrons, are they?

I understand that this is your blog and you have the right to say really uneducated and ignorant things (like Paul Moran over at his blog). you should, however, at least try to get things right.