The New York Racing Association has failed to implement significant financial reforms after its 2008 exit from Chapter 11 bankruptcy protection, according to an audit by New York State Comptroller Thomas DiNapoli released Tuesday.
“More than a year after my office’s last audit and real-time financial monitoring of NYRA, the organization still has much work to do to carry out the reforms we recommended,” DiNapoli said in a statement.
Tuesday’s audit found that NYRA, which operates horse racing tracks in the New York metro area, projected an $11.5 million deficit for the calendar year 2011 and expects a $19.7 million loss from racing operations in 2012.
DiNapoli worries that NYRA will use revenue from video lottery terminals to “mask ongoing financial problems and inefficiencies.”
Only by gaining the new terminals will NYRA show an overall profit this year, DiNapoli said.
“I will closely monitor NYRA to ensure it reins in unnecessary spending and does not waste the new money coming in from the Aqueduct racinos.”
Gov. Andrew Cuomo, in his state of the state speech in Albany three weeks ago, proposed a convention center for New York City’s Queens borough at the site of Aqueduct Racetrack, which last fall added slot machines.
NYRA, in a statement, said it took DiNapoli’s recommendations “very seriously” but considers the $19.7 million figure misleading.
“It should be noted that the 2012 budget was not within the scope of nor was it referenced in the audit, and was never discussed with NYRA management,” the association said in a statement released by its director of communications, Dan Silver.
