The creation of Off-Track Betting (OTB) in the state of New York led to a reallocation of parimutual betting revenues between the state and race tracks to include local governments and cities. Coate and Ross (1974, 1978) concluded that with the changes in track attendance patterns, as bettors moved from racetrack attendance to OTB facilities, and the change in revenues flows between track operators, state authorities and local government, that state tax revenues from parimutuel betting and track operators revenues declined. The issue of revenue splits has continued to plague the relationship between state and local government and OTB operations - as demonstrated most recently by New York City's recent threats to shut down OTB facilities throughout the city which was just narrowly averted by a tenuous political compromise. This paper analyzes OTB, its effects and impacts on state and local government revenues, and the future of parimutuel betting in New York State.
Richard Vogel. "Off-Track Betting and the New York State Economy." Proceedings of the New York State Economics Association. vol. 1, October 2008, p. 115-123
BibTeX entry download