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how to lose money even when you have a licence to print it

You'd think running a tote business in a region with a strong racing product, plenty of retail outlets and high margins would mean large, guaranteed profits. Apparently not.

Off-track betting under fire for vehicle fleet

The betting operation, which is heavily indebted and government-controlled, has come under scrutiny by the state comptroller, Thomas P. DiNapoli, for having a fleet of 87 vehicles at its disposal, according to an article in The New York Times on Tuesday. The vehicles cost an average of $6,700 each to operate every year.


...

The betting parlors are floundering in fiscal mismanagement. Last year, they recorded a deficit of $17.8 million, despite handling $1 billion in wagers. On Tuesday, Governor David A. Paterson issued an executive order authorizing OTB to file for bankruptcy protection.


What the ....? 87 company cars around one of the world's most traffic unfriendly cities? Get on the bloody subway! Have they ever thought of looking at how similar businesses around the world make huge profits? Sure they don't control racing like TABcorp or the HKJC, but even the relatively-lame UK Tote makes considerable profit each year, and it has to face tough competition.

Not sure of the funding relationships in the USA and specifically, New York. Does this affect funding for the NYRA?

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