Magna, New York City Off-Track Betting Corp Publishes Results of Study

Posted on Tuesday, April 3rd, 2007

For many years, MEC, as North America’s largest owner and operator of horse racetracks, based on revenue, has observed the failing business model for horse racing in New York State, including the difficult relationship between the racetracks and the off-track betting networks operating in the State.MEC has long been concerned regarding this and similar situations throughout horse racing in North America, including the fact that not enough is being done to update our industry’s decades old regulatory framework. Other sports and other forms of gaming and entertainment that have not been similarly constrained have flourished in the absence of constraints like those hindering horse racing.

MEC applauds the leadership of the City of New York, the New York City Economic Development Corporation (NYCEDC) and the New York City Off-Track Betting Corporation (NYCOTB) for undertaking the study “NYCOTB - A Plan for Transformation and Growth” that was published today. The major findings of the NYCOTB report, summarized below, parallel the business strategy that MEC has followed since its inception in 1998, namely to:

1) Pursue restructuring of the racing industry's economics and consider
closer collaboration and perhaps integration of racetracks and OTBs;
and

2) Drive growth through increased consumer access via multiple,
convenient platforms by deploying new technologies such as the
Internet, mobile and interactive TV.

MEC believes that horse racing needs to be like any other major league sport engaging customers where customers want to be engaged, whether in their living rooms (via TV or Internet) or with family and friends at a local sports bar (OTB) or at the venue (racetrack).MEC agrees with the study’s conclusion that there are substantial growth opportunities available in the horse racing and gaming entertainment business, and also agrees that regulatory reform is essential for such opportunities to be realized.

Michael Neuman, Chief Executive Officer of MEC stated, “As a participant in one of the bid groups for the New York racing franchise, we pledge to use our position constructively to bring about the changes necessary to ensure a successful future for horse racing in New York. In our view, such success will only be achieved by recognizing the inter-dependence of the racetracks and the OTB networks. The study released today should help propel enlightened industry participants to the same conclusion. The winners will be the thousands of New Yorkers who depend on horse racing for their livelihood as well as the State, the City of New York and the other municipalities in New York for which horse racing provides substantial economic benefits. And when they win, so will the customers of New York horse racing and so will the entire North American horse racing industry.”

MEC, North America’s largest owner and operator of horse racetracks, based on revenue, acquires, develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. MEC also develops, owns and operates casinos in conjunction with its racetracks where permitted by law. MEC owns and operates AmTote International, Inc., a provider of totalisator services to the pari-mutuel industry, XpressBet(R), a national Internet and telephone account wagering system, as well as MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty percent interest in HorseRacing TV, a 24-hour horse racing television network, and TrackNet Media Group LLC, a racing content management and distribution company.

tags: horse racing, New York horse racing, horseracing, NYRA

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"Magna, New York City Off-Track Betting Corp Publishes Results of Study" was posted on Tuesday, April 3rd, 2007 at 12:59 pm and is filed under Aqueduct, Belmont Park, Canada Horse Racing, Horse Racing Industry, Saratoga, USA Horse Racing. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.