The solution seems obvious.
The Economist reports on the sorry state of New York state’s quasi-public Off-Track Betting Corporation:
The OTB has in effect been operating in the red for years, but has used its reserves to keep going. By this summer it will need a cash infusion just to make ends meet. Mr Bloomberg has said he has no intention of subsidising the largest legal gambling operation in the country—not least because the city’s share of the revenues has dwindled while those of the state and the racing industry have grown.
The OTB was originally designed to raise money for the city and the state and to take gambling out of organised crime’s control by providing a legal outlet for betting. During the 1980s, it earned the city $65m a year. Just seven years ago the entity was almost sold for $250m. Today, its bleak-looking parlours are frequented by an ageing, dwindling base of punters.
Gee, what should they do? Hmmm…. how about getting the government out of the business, legalizing private operators, regulating and taxing them. Innovation: good for punters, good for racing, good for government coffers, good for transparency. Crazy, I know. Mike Bloomberg obviously knows all about the power of technology and innovation; maybe the folks over at Betfair should try to get a meeting…
