Customer FAQ

1. What does the chapter 9 filing mean for customers?

   The chapter 9 reorganization and adjustment of debts will help restore the financial stability of NYC OTB going forward and will result in an improved wagering experience for customers. In fact, the primary reason for filing NYC OTB’s chapter 9 case is to create a stronger, better NYC OTB for the future.

   In the meantime, NYC OTB will continue day-to-day operations without interruption as it develops a new business plan.

   • NYC OTB is proud to bring the race to its customers and we are working hard to keep doing so, without interruption, throughout the chapter 9 case.
   • Customers will continue to be able to bet through NYC OTB in the same way and view the same races from the same tracks as prior to the filing of the chapter 9 case.
   • The money in NYC OTB customer wagering accounts is in a separate, segregated customer funds bank account and will remain safe, secure and available for your use.

   Upon emergence from the chapter 9 process, customers can expect NYC OTB to focus on enhanced technology, improved customer service, revitalized facilities and new places to wager.

2. Is it safe to keep my money in my NYC OTB account? Will I be able to withdraw and deposit money whenever I want?

   The money in NYC OTB customer wagering accounts is in a separate, segregated customer funds bank account and will remain safe, secure and available for your use. In addition, funds in customer Advance Deposit Wagering accounts are held separately to assure the safety, security and availability of customer monies, and likewise, will not be used to fund NYC OTB operations.

3. Will I still be able to wager on all of the upcoming races?

   Yes, customers will continue to be able to bet through NYC OTB in the same way and view the same races from the same tracks as prior to the filing of the chapter 9 case. NYC OTB is also considering providing additional wagering content by extending the wagering hours to encompass international simulcast signals from countries such as Hong Kong, France and Australia.

4. Will there be any changes to how I can bet? Can I still bet through Bet-by-Phone and iBetOTB.com?

   Customers will continue to be able to bet through NYC OTB in the same way as always—in person, by phone and online.

5. Will you be closing any NYC OTB locations?

   The business plan being developed by NYC OTB currently calls for the elimination of a number of full-service locations. Taking advantage of modern technology, a number of the locations are expected to transition from full-service to self-service. In self-service branches, patrons will not have access to a betting clerk and will have to place their own bets, but there will be personnel on hand to cash winnings for patrons. Self-service facilities will generally be smaller, but will still provide the same general level of race simulcasting. Remaining full-service NYC OTB branches are expected to benefit from a capital improvement plan that, if implemented, would upgrade current facilities and improve services.

   One of the options that NYC OTB is also considering is the opening of five, flagship locations, one in each of the five boroughs.

6. Which branches will be closed? When?

   No exact closing locations or dates have been publicly announced at this time, but we will provide additional detail as soon as possible.

7. My NYC OTB branch is always busy. Why are you closing some branches?

   Cost reduction is a critical element of NYC OTB’s business plan currently in development and closing some locations is a necessary component of this cost reduction strategy. It will also allow us to invest strategically in new and remaining locations, and provide better service. Customers will continue to be able to wager at any of our branches that remain open or are created as part of the reorganization, which branches may include new flagship or renovated full-service NYC OTB locations and self-service locations.

8. How will I continue to bet if my branch closes?

   Customers will continue to be able to wager at any of our branches that remain open or are created as part of the reorganization, which may include new flagship or renovated full-service NYC OTB locations or self-service locations. Customers will also be able to continue to bet by phone and online (www.ibetotb.com) as they have in the past.

9. Will I still be able to watch racing on NYC OTB’s Channel 71 and 73?

   Yes, NYC OTB will continue to provide programming via channels 71 and 73 (different on Verizon Fios).

10. Will there be any changes to the fees you charge me?

    There will be no changes to the fees NYC OTB charges in person, by phone or online. NYC OTB may start a rebate program similar to other such programs in the industry to reward its customers based on amount of total wagering activity.

11. What would these flagship locations look like? What would they offer?

    In the event that NYC OTB’s new business plan includes the opening of flagship locations, such branches will likely have an approximate per-branch square footage of between 15,000 and 20,000 square feet (compared to the average of 4,000 square feet of current NYC OTB locations). This business strategy would entail one flagship location being opened in each of New York City’s five boroughs. NYC OTB expects that these new, modern structures would not only cater to the existing client base, but they would also help to draw a younger demographic with more disposable income by offering improved amenities (such as a bar and grill) and superior customer service.

12. What is chapter 9?

    Chapter 9 is the chapter of the Bankruptcy Code that permits a municipality (which includes public entities such as cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts) to seek adjustment of its debts under the supervision of a United States Bankruptcy Court. As a public benefit corporation created by State statute and regulated by the State, NYC OTB is a municipality permitted to file for relief under Chapter 9. The purpose of chapter 9 is to provide a financially distressed municipality protection from its creditors while it develops, negotiates and obtains court approval of a plan for adjusting its debts.

13. Is this the same as the shutdown proposed last year?

    No, this is not a shutdown. It will be business as usual for NYC OTB during the chapter 9 case and reorganization.

14. How long will NYC OTB be in chapter 9? What happens next?

    NYC OTB expects the chapter 9 case to proceed expeditiously. However, NYC OTB cannot confirm precisely when it will emerge from chapter 9, because it requires the New York State Legislature to enact an overhaul of racing legislation and it will also require bankruptcy court approval. NYC OTB is committed to working with all stakeholders to create a better and more sustainable business for the benefit of New York City, New York State, the horse racing industry and, most importantly, the customers. NYC OTB will provide timely updates throughout the chapter 9 process.

15. Is there a chance that NYC OTB will go out of business completely?

    The purpose of this filing is to prevent NYC OTB from going out of business. The chapter 9 plan and the implementation of the business plan will help sustain the viability of NYC OTB going forward and will result in an improved wagering experience for customers. However, the New York State Legislature has to act by making necessary changes to the State racing laws which are necessary for any business plan to succeed.

16. How can I get more information?

    NYC OTB has also created a website dedicated entirely to the chapter 9 case and the reorganization process, www.nycotbfacts.com. The site contains, among other things, copies of key pleadings filed in the NYC OTB chapter 9 case. Additionally, should you have any questions or would like to speak to a customer service representative, please call us at (212) 221-5200 Ext. 5620.