More Money, More Problems for NYRA
A scandal hits the NYRA, the New York Racing Association. This came as a result of charges that have been raised against Charles Hayward, the Chief Executive and the Patrick Kehoe the general counsel. They have been charged with overcharging clients for almost a year. This news has been confirmed after the NYRA itself has put these two on a leave without any pay because of the accusations. The basis of these allegations is that Patrick Kehoe and Charles Hayward knew that there were bettors who were being over charged for their betting and they didn’t take any action towards the situation.
As for the details of the charges themselves, according to sources, NYRA has been charging their clients extra charges for almost 15 months. This started on the 15th of September in 2010. This resulted in extra revenue for the NYRA worth 8.6 million on what was called a “takeout rate”. A “takeout rate” is the amount money that the organizations keep from the winnings of the client. When NYRA was notified about these extra charges in December, it claimed that it was an error and a mistake. On the other hand, there have been reports that prove that the NYRA knew about these overcharging issues for more than a year, but did absolutely nothing about it.
The Director of the NYC Budget has initiated a petition to the State Inspector General in order to look into whether there were any criminal or civil laws that has been broken by the NYRA through Hayward or Kehoe.