Another Government Success Story Goes Broke

Great idea putting the healthcare industry in the hands of our government overlords, isn't it?

The government bookie is broke.

The Off-Track Betting Corp. yesterday filed for bankruptcy while it develops a new business model that will stem the flow of red ink and allow it to survive.

The success of the plan, according to an OTB release, depends on the state Legislature enacting laws that will reduce the money OTB is now forced to pay the racing industry in New York.

If those cutbacks are not made, OTB threatens to shut down its operation.

In the meantime, it will continue to serve the city's horseplayers.

OTB says it has lost $45 million over the last five years.

The bankruptcy filing lists as much as $500 million in debt and some $50 million in assets.

Can anyone explain how a bookmaking operation ever loses money?