OTB accepts amended suite deals for Bills, Amerks games

Sep. 28—Western Regional Off-Track Betting Corp., which was flagged last year by state auditors for misusing sporting, concert and other event tickets purchased with public money as part of its promotional efforts, is continuing to host patrons inside a suite at Highmark Stadium in Orchard Park during Buffalo Bills games this year.

Members of OTB's Board of Directors made it official last week when they agreed to accept an amended suite licensing agreement with Pegula Sports & Entertainment, the company that oversees operation of the Bills and Buffalo Sabres for the teams' owners, Kim and Terry Pegula.

The amended agreement covers use of a suite at Highmark Stadium for the 2022-2023 season. The year was added to an existing agreement that covered OTB suite access for the 2019, 2020 and 2021 Buffalo Bills seasons. Because the 2020-21 season was paused due to COVID-19, Pegula Sports extended the existing suite license to include this year's slate of Bills games at a cost of $103,200.

In addition, during a board meeting last week, OTB directors accepted a separate amended agreement covering use of a suite inside Blue Cross Arena in Rochester. The deal adds suite access for Rochester Americans games and "various concerts" during the 2022-23 and 2023-24 seasons. The two-year suite access came at a total cost to OTB of $75,400.

"The resolutions regarding the Bills and Amerks were simply administrative due to those teams extending the contracts due to the pandemic," said OTB's director Ryan Hasenauer. "We were already under contract with the Bills through this year and the Amerks through next year. These resolutions did not incur any additional purchases, it was just simply our board acknowledging that the contracts were extended by those teams and that they approved that extension."

As part of the public benefit corporation's "patron attraction and retention program," OTB has for years awarded regular customers at Batavia Downs casino and horse racing track with tickets granting access to suites at area venues for Buffalo Bills, Buffalo Sabres and Rochester Amerks games as well as concerts and other events. The goal of OTB's promotional program is to increase patronage and game play at the agency's gaming outlets, including Batavia Downs.

An audit released last fall by New York State Comptroller Thomas DiNapoli's office found OTB officials spent at least $121,000 on tickets to sporting events, concerts, food and alcohol for board members, employees and other individuals without the oversight required by state rules.

The audit examined OTB's marketing and promotional program — which included ticket giveaways for Buffalo Bills, Buffalo Sabres and Rochester Americans games — from September 2017 to December 2019. During the audit period, the comptroller's office found OTB spent nearly $1.3 million on leases for suites at sporting venues, concert tickets and food and beverages.

State auditors also found OTB officials failed to keep accurate records on ticket recipients and gave tickets and concessions to board members, employees and other individuals. The average ticket cost, including the amount spent on concessions, was $221, according to the comptroller's office.

In unveiling the audit findings, DiNapoli encouraged OTB officials to "clean up its operations" by tightening oversight and eliminating questionable spending.

As part of its audit, DiNapoli's office encouraged OTB officials to develop and adopt a written policy to administer the promotional program and to develop a system to maintain a complete, detailed and accurate record of all tickets distributed.

"Our audits released last year found problems with Western Regional OTB management including how they gave out tickets at sporting and other events," said DiNapoli's communications director Jennifer Freeman. "These benefits should not be given out as perks to board members and staff. The Western OTB should take necessary steps to implement these changes and ensure that all its actions are transparent and in the public interest."

OTB representatives have consistently argued that it was necessary for representatives to attend sports games, concerts and other events as "hosts" to assist patrons who received tickets as part of the promotional program. They also maintain that changes have been made in the way the promotional program, including the handling of all tickets, are monitored.

In addition to accepting the amended suite agreements, OTB board members took another step last week to bolster the agency's promotional program by accepting a $610,832 agreement with Mark-It-Smart, Inc. The company will supply OTB with pieces of luggage, cast iron cookware, purses, camping equipment, cookware, glassware, bedding and margarita-themed items that will be given away to regular Batavia Gaming customers.