Suffolk OTB sells headquarters for cash infusion
Recent financial struggles for the Suffolk OTB has led its president and CEO to sell its Hauppauge headquarters building for a cash infusion.
Officials say the Suffolk OTB lost about $3 million last year and owes creditors millions more in bankruptcy debt. CEO Phil Nolan says he's confident things are about to turn around.
"We're doing everything in our power to cut costs and, at the same time, we're growing the parts of the business that are most profitable," Nolan told News 12.
The proposed VLT terminals in Medford are a key piece of that anticipated profit.
While Nolan insists the organization's deficit doesn't cost taxpayers a dime, some tax activists are questioning why it still exists.
"The only reason is a political one and a patronage one. It makes a lot of jobs for a lot of people related to a lot of politicians...because it doesn't make any profit and it's poorly run," said tax activist Fred Gorman.
Nolan disputes that claim, saying OTB still paid Suffolk County more than $1 million last year.
Nolan says Suffolk OTB's reorganization plan has already been approved by federal regulators and creditors.