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Thomas DiNapoli
Western Regional Off-Track Betting Corp. spent at least $ 121,000 on tickets to sporting events, concerts, food and alcohol for board members, employees and others without the supervision required by the rules of the State, according to an audit released today by New York State. Controller Thomas P. DiNapoli.
A second published audit found that the OTB CEO failed to reimburse the organization for its personal use of an official vehicle in a timely manner.
Both audits revealed lax board oversight of operations, an unsettling tone at the top of the organization to set and follow rules, and poor documentation. DiNapoli urged the OTB to seek reimbursement for tickets and other expenses that were inappropriately distributed.
“Western Regional Off-Track Betting Corporation Must Clean Up Its Operations” said DiNapoli. “OTB revenues are meant to go to participating municipalities, not to provide generous perks and other benefits to board members and employees. The board has said it is acting on our recommendations and I urge them to continue to strengthen oversight and eliminate questionable spending. “
The OTB was formed in 1973 and is owned by 15 participating counties, including Chautauqua County and the cities of Buffalo and Rochester. It offers mutual off track horse racing betting at Batavia Downs Gaming and other locations. The revenues generated are distributed to the participating municipalities.
In the first audit, DiNapoli listeners reviewed the OTB’s marketing and promotional program from September 2017 to December 2019. The program included tickets to Buffalo Bills, Buffalo Sabers and Rochester Americans games, as well as concerts in the region. It aims to increase the patronage and play of the OTB. The New York State Gaming Commission authorizes the distribution of free tickets, but requires the OTB to submit an annual marketing plan identifying who can receive promotions and keep information on who received the free items. During the audit period, the OTB spent nearly $ 1.3 million on suite rentals at sports venues, concert tickets, and food and drink.
The auditors found that OTB officials did not keep accurate records of who received tickets and gave tickets and concessions worth at least $ 121,000 to board members. administration, employees and others. The average cost of tickets, including the amount spent on concessions, was $ 221. The records of who received the tickets were incomplete, making it difficult for listeners to determine the full extent of the tickets being distributed.
Auditors identified specific instances where board members received tickets, but no business purpose was identified by OTB officials. Some examples (more instances are included in the audit):
For a hockey game on November 23, 2018, the Chairman of the Board of Directors received six tickets and the Vice President of Operations received nine tickets. In addition, one of the OTB vendors received three tickets. The OTB had no record of who actually attended the game. However, the bill for the concessions was $ 1,167, including $ 177 in alcohol purchases.
For another hockey game on December 29, 2018, the chair of the board received four tickets, five tickets were given to another board member, and five more tickets were recorded as given to “host.” Again, the OTB had no record of who actually attended the game. The bill for the concessions was $ 1,443, including $ 493 in alcohol purchases.
The auditors recommended that the OTB:
Develop and adopt a written policy and procedures for the distribution of tickets and who is eligible to obtain them.
Request reimbursement for tickets and food and drink if they are not provided appropriately.
Define in the marketing plan which groups or categories of free items, including tickets, will be distributed according to state regulations.
Develop a system to maintain a complete, detailed and accurate record of tickets distributed.
The second audit, on monitoring vehicles assigned to employees from January 2016 to April 2020, found that the CEO did not track his personal use of his official vehicle and keep mileage records, like all employees were required to do so. He also did not pay the annual fee of $ 260 paid by other employees. He later reimbursed the OTB $ 3,484 after an internal auditor found he was not following OTB policy.
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