NYRA needs to rely less on VLT $
The state wants the New York Racing Association to develop a survival plan without relying so heavily on video lottery terminal subsidies.
The state's Franchise Oversight Board, which oversees NYRA, has released its annual report for 2011, which includes a series of concerns about the corporation's operations for the future.
Chiefly, the FOB was critical of NYRA's expense structure, saying it can't keep allowing expenses to grow. Echoing a familiar critique of NYRA, that it is becoming too reliant on VLT revenue, the FOB said the corporation needs to rely on it less.
"NYRA must establish a long-term financial goal to end its reliance on VLT subsidies and immediately develop plans on how it will meet this goal," the FOB said.
NYRA's budget for 2012 projects $93 million in VLT revenue, which goes toward capital expenditures, breeders, increased handles and operating expenditures.
The FOB also reiterates its concerns about the way NYRA markets itself to non-racing fans. An early passage from the report says, "The Board remains focused on NYRA’s marketing efforts and has continually emphasized to NYRA the need to develop a comprehensive and innovative plan to increase handle and grow fan interest in the sport."
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