OTB puts bet on Web wagers

[d107]

State board OKs Capital Region chain's entry into Internet gambling

By CAROL DeMARE, Staff writer
Times Union
Saturday, December 1, 2007

ALBANY -- Capital OTB aims to get Internet gambling started within the month, now that state racing officials have given the go-ahead.
Internet betting will work much like OTB's phone-a-bet. The user has an account and wagers with those funds, Capital OTB President Michael Connery said Friday.

Approval for the Internet program came Thursday from the New York State Racing and Wagering Board.

Earlier this year, Connery told the corporation's board of directors he expects Internet betting to increase the handle by $10 million a year. On Friday, he called that figure very conservative.

"No question, it's going to have a major effect on Capital OTB," Connery said. "We now join New York City (OTB) and NYRA on the Internet. Some time ago, we got permission, along with NYRA, to do cash rewards, and we are going to be allowed to do that with the Internet."

It was a necessary step, he said. "We're competing with off-shore gambling. (With the Internet,) we hope to see new customers."

But the racing board denied OTB's request to provide certain privileges to VIP bettors.

The board found "vagueness in the language in OTB's internal controls as it relates to VIP Internet account wagering," board spokesman Dan Toomey said.

"If they change the language of the internal controls, they can come back to the board and the board can approve any amendments they make," Toomey said.

Connery called it a "situation that needs some clarification. ... We expect it to be cleared up." The racing board previously approved VIP treatment for phone-a-bet accounts, he said.

Earlier this year, Capital OTB was criticized for its check-cashing practices and special treatment of big bettors. Following a scathing report by the racing board, improvements were undertaken.

V Commerce, Australian company based in Boston, will operate the program. OTB officials have said a vendor usually takes an annual fee of 3 percent to 3.5 percent of the Internet handle. V Commerce also provides the voice on phone-a-bet.

Connery is retiring at the end of the year. The racing board approved his successor: John Signor, 43, of Niskayuna, vice president and chief financial officer of Capital District Regional Off-Track Betting Corp.

The public benefit corporation runs parlors in 16 counties and the city of Schenectady.

Connery said he had two goals before he departed -- Internet gambling and seeing the issue resolved of who would operate the New York Racing Association. He called NYRA critical to the state horse racing industry and critical to OTB.

[Brian Robbins]

newyork has such double standards