The New York Racing Association (NYRA), a private, non-profit racing association established in 1955, has announced that it has filed for Chapter 11 bankruptcy protection. According to the President and CEO of NYRA, Charles Hayward, the action was taken as a last option in order to maintain the current schedule of racing dates, purse structure, stakes programme and all other racing options.

“Chapter 11 bankruptcy does not mean going out of business,” commented Hayward. “In fact, it is a constructive process that allows NYRA the opportunity to achieve financial reorganization while continuing to conduct world-class Thoroughbred racing without interruption.”

NYRA owns and operates the three largest racetracks in New York – Aqueduct, Belmont Park and Saratoga Race Course. It has contributed over US$3 billion in direct tax revenue to the State of New York since 1955 and employs around 1,170 workers. Selected racetracks in New York have received state legislation authorising the introduction of Video Lottery Terminals (VLTs) and very recently both Yonkers and Vernon Downs have very successfully opened gaming rooms. Of the three NYRA racetracks only Aqueduct was included in the VLT legislation, and it is still awaiting final approval.

At the beginning of this week, the Non-Profit Racing Association Oversight Board applied further restrictions and conditions to a US$19 million loan to NYRA, the balance of a previously approved loan. According to C. Steven Duncker, Chairman of the NYRA Board of Trustees, “It is unfortunate, and frankly, inexplicable, why the State Lottery Division could not work out the details necessary to get the VLT construction underway at Aqueduct.”

He added, “It is all the more mystifying given the fact that VLTs have been put in operation at eight non-NYRA tracks around the state. VLTs at Aqueduct represent cash flow to our industry, the continuation of New York Racing—the premier brand in North America—and over $400 million per year for the State’s budget for education, $60 million for the Lottery, and $50 million for purses and breeders awards.”

NYRA claims that over the last three years new management has increased revenues, reduced net loss, reformed internal security systems and incorporated state-of-the-art drug testing programmes. The decision to file for Chapter 11 bankruptcy was taken, according to NYRA, to protect New York’s Thoroughbred racing industry. Last year Belmont Park and Saratoga Race Course were ranked first and second of all North American racetracks in average daily purse distribution, and Saratoga maintained its position as the most popular and successful. (E-11.03.06)

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