LEXINGTON, Ky. (April 12, 2013) — Kentucky Off-Track Betting LLC (KOTB) has announced that it will close all three of its facilities in June, after completion of the 2013 Triple Crown Series.
KOTB operates locations in Corbin, Jamestown and Maysville, and employs a total of approximately 20 full-time and part-time employees.
KOTB was formed in 1993 by Churchill Downs, Ellis Park, Keeneland and Turfway Park. The main impetus behind the partnership was to generate handle dollars, which would in turn help build Kentucky’s purse structure.
Over the past 10 years, KOTB has generated an average of $1.4 million per year dedicated to Kentucky Thoroughbred purses. In addition, KOTB has given back 0.75 percent of each dollar handled to the city where each facility is located, with the respective county receiving 0.25 percent.
However, economic factors – combined with the decline in overall handle at the outlets – forced the organization to evaluate the feasibility of continuing.
A look at the numbers brings the problem to light. Ten years ago, a total of $25.7 million was wagered at the outlets compared to $10 million in 2012.
“Closing our OTBs won’t be easy and it has not been a decision our owners have taken lightly,” said KOTB General Manager Laura Prewitt. “However, the bottom line is that it is not profitable and does not make economic sense to keep operations going. It is imperative that we look critically at our industry and business models to find ways to grow the sport, and it would be irresponsible to continue ventures that are not profitable.”