NYC’s Off-Track-Betting Seeks Bankruptcy Protection

Bloomberg reports:

New York City Off-Track Betting Corp., operator of storefront horse-race wagering parlors, filed for bankruptcy and plans to reorganize after five years of losses totaling $45 million.

A lack of resources to build the type of modern race tracks that exist in neighboring states and dwindling cash levels were cited as reasons for the filing. The Chapter 9 filing in U.S. Bankruptcy Court in New York today listed as much as $500 million in debt and as much as $50 million in assets.

The filing won’t halt gambling operations, though some bills due in November won’t be paid, said Meyer Frucher, chairman of the state-run corporation, in a conference call with reporters. Chapter 9 bankruptcy allows municipalities to reorganize rather than liquidate.

Via Instapundit.