Sponsors of the measure thought they had the votes, but support evaporated.
Syracuse, NY - Onondaga County legislators on Tuesday killed efforts to bring off-track betting here, voting 13-5 to remain one of 13 counties in the state without horse-betting parlors.
Rejecting arguments that OTB would yield at least $1 million a year for cash-starved county government, most legislators sided with Democratic Floor Leader Mark Stanczyk’s position that “government shouldn’t be involved in getting money from people’s misery.”
OTB supporters, including Legislator Martin Masterpole, D-Syracuse, said it represented “free money” to help balance the budget. But Stanczyk and other legislators said they did not want the county associated with gambling.
Click on the image above to see a larger PDF showing revenue from off-track betting in Central New York.
Ironically, the vote against OTB came after supporters made a late decision to put it on the Legislature’s agenda because they thought it would pass. Chairman James Rhinehart, R-Skaneateles, added the resolution to the agenda Friday, just before the long holiday weekend.
Before Tuesday’s meeting, Rhinehart said he thought the measure would pass. It appeared there were 10 votes in favor and eight against, he said.
“I believe the votes are there,” he said.
But it became clear just before the session began that the measure would fall short, said Legislator Kathy Rapp, R-Salina, who co-sponsored the resolution with Masterpole. Rapp said pressure from anti-gambling advocates swayed several votes.
Two gambling opponents, Peter Muserlian and Christina Fitch, implored the Legislature on Tuesday to reject OTB.
Rather than risk defeat, Rapp withdrew the resolution midway through the session. The same thing happened last month, when Rhinehart withdrew an OTB resolution rather than watch it fail.
This time, sensing an opportunity to “put a spike in this and kill it,” Stanczyk offered to sponsor the resolution to force legislators to vote.
Several legislators said they do not expect the issue to be revived soon.
“I’m done,” said Rapp. “I gave it the old college try.”
Beginning last fall, Rapp and Rhinehart contacted off-track betting corporations to see if they would be interested in coming to Onondaga County. They saw it as a way to raise money to offset a looming county deficit that may exceed $50 million.
After receiving two expressions of interest from OTB corporations, a small committee of legislators decided to affiliate with Capital District Regional Off-Track Betting Corp., of Schenectady. The resolution voted down Tuesday would have asked the state Legislature to make Onondaga County a member of Capital OTB, which operates in 17 counties, including Madison and Cortland.
Capital OTB paid out $4.3 million in 2008 to its participating municipalities, down 32 percent from 2005, according to the state Task Force on the Future of Off-Track Betting in New York State. Across the state, OTB profits have dwindled in recent years as horse wagering declines, the task force reported.
The amount of money wagered on horse races — the “handle” — has been dropping for a decade. Between 1999 and 2008, OTB betting declined 29 percent after factoring in inflation, according to the task force.
But Onondaga County is one of the most populous of 13 counties that don’t have off-track betting, and Capital OTB officials predicted it would yield significant revenue. They estimated Onondaga County bettors could generate as much as $50 million a year in wagers, which would yield roughly $2.15 million to the county. At a minimum, they said, the county would generate $20 million in wagers and about $1 million in revenue to the county.
Masterpole said collecting OTB revenue would be much easier than making cuts in the county budget.
“That’s free money,” he said. “You found it.”
Rhinehart said he could not understand the ferocious opposition to OTB, which already draws Onondaga County bettors to Bridgeport, Phoenix and other spots in the four counties surrounding Onondaga.
John Signor, president and CEO of Capital District OTB, said he was disappointed by Tuesday’s vote.
“We were here to provide that revenue and those jobs to the county if they wanted it. It appears that’s not the case,” Signor said.
Capital OTB was one of three OTB corporations that tried to gain entry to Onondaga County in 2004, the last time the county looked at the possibility. Signor said maybe the county will pick up the idea again in a few years.
“Hopefully at some point we’ll be talking again,” he said. “I don’t see it as anytime soon.”
Contact Tim Knauss at tknauss@syracuse.com or 470-3023.