$10,000,000 Revenue

In New York, where there are five race tracks, betting on horse races has been illegal since 1908, but bookmakers for the past five years have been permitted to operate at the tracks through a loophole in the law. Although most New York racing fans consider pari-mutuels* (which have been legalized in 18 States) a fairer system of betting, a small but powerful lobby in Albany has for five years influenced legislators against replacing book betting with pari-mutuel machines.

A year ago New York's law makers, enviously noting that California collects some $2,000,000 a year from the 4% tax on the pari-mutuel handle at its race tracks, finally turned a deaf ear to lobbyists, passed (33-To-14 in the Senate, 110-to-36 in the Assembly) a resolution for a constitutional amendment to legalize pari-mutuel betting. Under New York law, however, it had to be passed by two successive Legislatures before it could be submitted to the voters for referendum.

Last week, while 120 of New York's bookies gloomily set up their stools for the opening of what may be their last Belmont Park meeting, the measure met its crucial test, passed the State Senate a second time--in spite of an alleged $100,000 greasing fund put up by bookmakers. Now expected to be passed by the Assembly and approved at the polls next November, pari-mutuels may appear at New York tracks next spring, and an extra $5,000,000 to $10,000,000 revenue is counted on for the State.

For those racing fans who prefer to bet against bookmakers (because their odds are stable), non-partisan observers last week suggested permitting both bookmakers and pari-mutuels to operate at New York tracks, a common practice in England and Australia. New York merchants, who disapprove of mutuels (because of their popularity with the masses), had the condolences of the merchants of Miami, Los Angeles, Boston, Baltimore.

* Machine betting through a general pool in which the odds are determined by the amount bet on each horse--after 3% to 10% has been deducted for the owners of the track and 3 % to 4% for the State.

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