This week, Catskill Off-Track Betting notified customers on its Interbets website it would cease accepting bets effective Nov. 30.

This comes after the public benefit corporation, which serves 13 counties in the Catskills and Southern Tier regions, asked for an emergency meeting with the governor but state Assembly Racing and Wagering chair Gary Pretlow, D-Mount Vernor, said he was still caught a bit off-guard.

"I was surprised that they were going to," Pretlow said. "I do know that there have been fiscal issues with Catskill OTB for a number of years and they've been trying to work through it to no avail."

On Wednesday, the executive director of the state gaming commission sent a letter to the Catskill OTB president, laying much of the blame for its inability to continue operations directly on the corporation pointing to a "pattern of mismanagement that has plagued this organization for years." In 2023, the governor threatened closure but the state ultimately allowed the organization to use capital funding for other operation costs.

"There are a lot of things that can be done to alleviate the drain of cash from Catskill OTB," Pretlow said.

As the overall horse racing handle has declined significantly for years across the state, the organization has pointed to legislative roadblocks as a reason for its financial troubles, including a failure to secure permission to operate video lottery terminals. Pretlow said under state law, facilities in Western New York, Saratoga and Yonkers are authorized for VLTs because they already have race tracks.

However, he said the gaming commission's assertion Nassau and Suffolk counties received exceptions "not to save failing corporations but to drive revenue to their respective counties" is not altogether true.

"I think Nassau and Suffolk got them because of a former leader in the state Senate in Dean Skelos that represented there, made a deal with the former administration to give them VLTs," Pretlow said.

He said there are efforts to increase interest in horse racing, including a half-a-billion-dollar renovation of the Belmont race track near New York City. Pretlow said people are still betting on horses but often OTBs aren't seeing the benefit.

"They're not betting through a New York entity like NYRA Bets," he said. "They're betting through Twin Spires or something else, which is out of state and the way the monies are split up are different."

The gaming commission has asked Catskill to submit a closure plan by Monday that addresses things like cashing out unpaid tickets, vouchers and account balances. Many of those answers are on the FAQ section of the Interbets website. The OTB said it is actively pursuing legislative and regulatory assistance to restructure with the aim of securing new profitable products to resume sustainable operations.

Pretlow believes the Legislature in partnership with the gaming commission may be able to work out something, taking into consideration lost jobs and revenue for communities.