Catskill OTB, an off-track horse racing betting company in New York, is closing at the end of this month amid financial strain.
The Catskill Regional Off-Track Betting Corporation (Catskill OTB), a staple in New York’s Hudson Valley for nearly five decades, will halt all operations at the end of November.
Catskill OTB was established under a 1970 law that enabled regional off-track betting corporations to operate across New York.
Once part of a network employing over 1,200 people statewide, the organisation now serves as a case study of how the gambling industry has evolved, leaving some traditional models behind.
The organisation, which allowed wagers on horse racing through physical locations and its website Interbets, announced the closure on its website. Financial difficulties and dwindling revenues are primary factors, according to Albany-based media outlet Times Union.
Catskill OTB was once a primary destination for horse racing fans, but has faced significant challenges in recent years. These include declining interest in horse racing, competition from legalised sports betting, and the rise of digital gambling platforms.
“This outcome, while unfortunate, is not surprising given the challenges we’ve faced over the past decade,” said Wanda Williams, president of Catskill OTB.
She pointed to a shrinking fan base for horse racing and reduced betting activity as critical issues, coupled with what she described as inadequate support from the state legislature.
Williams highlighted past legislative efforts to secure new revenue sources, including bills that were ultimately vetoed. Catskill OTB also explored expanding its operations into New York City and introducing video lottery terminals but failed to secure the necessary approvals.
Decline in operations and revenue
In recent years, Catskill OTB significantly reduced its physical footprint, shifting to a limited number of betting kiosks in restaurants in the wake of the Covid-19 pandemic.
These kiosks have since been removed, and the organisation will stop accepting bets on its website as of 30 November. Account holders will have access to their funds until 15 December.
The corporation reported $9m in wagers on horse races in 2023, a modest figure compared to other regional OTB operators in the state. Catskill OTB contributed $1m in revenue to governments and the horse racing industry last year, bringing its lifetime contributions to $746m.
However, these figures were insufficient to sustain operations. State records and audits highlighted years of mismanagement, including wasteful spending and questionable practices by former leadership.
A 2018 state inspector general’s report revealed misused funds on rented properties for storage and other irregularities involving former Catskill OTB president Donald Groth.
While the closure appears final, Catskill OTB leaders have expressed hope for a revival. They aim to restructure and seek legislative relief in 2025, with plans to address the company’s outstanding debts to the state and other entities.
Williams hopes to get New York Governor Kathy Hochul to intervene before it’s too late. This week, she requested an “emergency meeting” with the governor to discuss the “relationship with the [New York State Gaming Commission]” and the “need for immediate action” to halt the closure.
Legislative roadblocks and industry shifts
Catskill OTB’s struggles reflect broader challenges in the horse racing industry. Once a dominant form of gambling, horse racing has seen declining interest as sports betting and online casinos attract a younger and more diverse audience.
Efforts to modernise Catskill OTB’s business model have faced repeated roadblocks. Gov. Hochul sought to close the corporation entirely in 2023 but instead approved short-term relief, allowing the use of capital funds for operational expenses.
Legislative proposals to expand Catskill OTB’s services were rejected, further limiting its ability to compete in a rapidly changing gambling landscape. In her letter to the governor, Williams highlights this limitation as one of the reasons for the impending closure.
The closure will directly impact approximately a dozen employees and reduce the already narrow scope of off-track betting options in the region. Beyond employment, the cessation of operations will end Catskill OTB’s contributions to state and local governments, as well as the horse racing industry.