financial condition of new york state regional off-track betting corporations
Post on 30-May-2018
215 Views
Preview:
TRANSCRIPT
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
1/32
DIVISIONOF LOCAL GOVERNMENT
& SCHOOL ACCOUNTABILITY
O F F I C E O F T H E N E W YO R K ST A T E C O M P T R O L L E R
2009-MS-10
Financial Condition
of New York StateRegional Off-Track
Betting Corporations
Thomas P. DiNapoli
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
2/32
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
3/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER2
State of New YorkOffice of the State Comptroller
Division of Local Governmentand School Accountability
May 2010
Dear Corporation Officials:
A top priority of the Office of the State Comptroller is to help local government officials manage
government resources efficiently and effectively and, by so doing, provide accountability for the
revenues and expenditures related to local government operations. The Comptroller oversees the
fiscal affairs of local governments statewide, as well as compliance with relevant statutes and
observance of good business practices. This fiscal oversight is accomplished, in part, through our
audits, which identify opportunities for improving operations and Board of Directors governance.
Audits also can identify strategies to reduce costs and to strengthen controls intended to safeguard
local government assets.
Following is a report of our audit entitled Financial Condition of New York State Regional Off-
Track Betting Corporations. This audit was conducted pursuant to Article V, Section 1 of the
State Constitution, and the State Comptrollers authority as set forth in Article 3 of the General
Municipal Law.
This audits results and recommendations are resources for Corporation officials to use in effectively
managing operations and in meeting the expectations of their constituents. If you have questions
about this report, please feel free to contact the local regional office for your county, as listed at
the end of this report.
Respectfully submitted,
Office of the State Comptroller
Division of Local Government
and School Accountability
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
4/32
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
5/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER4
Audit Results
The financial condition of the States five regional OTB Corporations has substantially deteriorated
over the course of the last five years. Total handle received by the five Corporations declined by
almost $103 million (10 percent) in this period; moreover, in the first five months of 2009, handle
fell by 10 percent when compared to the same period in 2008. In addition, between 2004 and 2008,the Corporations were required to pay 56 percent of their remaining handle (total handle after
paying bettors) to the racing industry, the State, and local governments before paying operating
expenses. Although most of the Corporations reduced their operating expenses during that period,
the Corporations net operating revenues their collective bottom line declined by 67 percent due
to the combination of the declining handle and up front payments made to the racing industry
and governments.
External conditions have brought about much of the Corporations deterioratingfinancial condition.
Over the past five years, the amount bet on horse racing nationwide has decreased by about 10
percent, from $15 billion in 2004 to $13.6 billion in 2008. The Corporations must compete for
these declining handle dollars with other gaming entities (e.g., casinos), as well as with out-of-state advance deposit wagering companies that neither are regulated by, nor pay distributions to,
the State. Further, a 2003 law allows Corporations to take wagers on nighttime races, but only if
they pay harness tracks compensation at rates that are outdated and too high. Harness tracks can
also limit the Corporations ability to adjust their operations: harness tracks are able to veto the
sites of new OTB remote locations that cost less to operate because the Corporations do not own
or staff the sites. As conditions in the industry change, the legislation governing the Corporations
must also evolve to address the existing conditions.
To their credit, the Corporations have already implemented some cost savings measures, like
reducing staff, and have pursued a number of revenue enhancement opportunities, such as rewards
programs for patrons. However, the Corporations must be willing to take additional actions that
will cut costs and raise revenues. These steps include considering additional reward programs
to attract bettors, closing Corporation venues that lose money, expanding automated telephone
betting systems and remote wagering mechanisms that save money, and enabling low-cost, on-
line wagering. As of the end offield work, only Capital and Nassau offered on-line wagering. It is
also essential that the Corporations continue to pursue collaborative efforts that have the potential
to improve OTB marketing, save costs, and advance their collective bottom line. A healthier
bottom line will benefit the Corporations, as well as local taxpayers who benefit indirectly from
the continued payments made to the State and local governments.
Comments of Corporation Officials
The results of our audit and recommendations have been discussed with Corporation officials and
their comments, which are included in Appendix D, have been considered in preparing this report.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
6/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 5
Background
Introduction
Articles V and VI of the State Racing, Pari-Mutuel Wagering
and Breeding Law (Racing Law), which were enacted in 1970
and 1973, authorize local governments within New York State
to operate systems of off-track pari-mutuel betting as a method
of raising revenues for the local governments, the States horse
racing industry, and New York State. The legislation was also
intended to prevent and curb unlawful bookmaking and illegal
wagering on horse races, and ensure that off-track betting (OTB)
activities were conducted in a manner compatible with the well-
being of the States horse racing industry.
Pursuant to the legislation, six regional off-track betting
corporations (Corporations) were created. The New York StateRacing and Wagering Board (Racing Board) has jurisdiction over
the Corporations, along with all other horse racing activities and
pari-mutuel betting activities in the State. As provided for under
the authorizing legislation, each of these Corporations is a public
benefit corporation governed by a Board of Directors whose
members are appointed by the governing bodies of the relevant
local governments. The Board of Directors of the New York City
OTB Corporation are appointed by the Mayor of New York City.
The five regional OTB Corporations outside New York City
include Capital, Catskill, Nassau, Suffolk, and Western.1
The Corporations offer off-track pari-mutuel wagering on
thoroughbred and harness races held at various race tracks in the
State, as well as at race tracks located outside the State that have
simulcast contracts with the Corporations. The Corporations
accept wagers at various physical locations, as shown in Table
1, and also accept wagers over the phone. Capital and Nassau
accept wagers through the internet, but, as of the end of field
work, Catskill, Suffolk and Western did not currently offer
internet-wagering services to their patrons.
____________________1 The Western OTB Corporation also owns and operates Batavia Downs
Gaming Facility (Batavia Downs) which conducts lives harness racing, and
simulcasts races to and from other racetrack facilities. In addition, Western
was granted a video gaming license to begin video gaming operations in May
2005.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
7/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER6
From 2004 through 2008, the five Corporations cumulatively
collected $4.9 billion in handle,2 which is the total amount
wagered on horse races. The winning bettors receive a major
percentage of the amounts wagered on each race. From the
remaining handle, the Corporations must make certain statutory
distributions to the States horse racing industry, which comprises
various racetracks and horse breeding funds, and to New York
State. These statutory distributions are made based on formulas
contained in the Racing Law. The Corporations must also paymonthly surcharge fees to counties that participate in the OTB
system, and additional surcharges to counties where racetracks
are located. The handle that remains, plus any other sources
of income, equals the Corporations operating revenues. After
paying operating expenses, each Corporation must distribute its
net operating revenues, less contributions for capital acquisitions,
to participating local governments. (See Appendix A for OTB
Terms and Definitions.)
The Laws of 2008 created the Task Force on the Future of Off-Track Betting (Task Force), whose five members are appointed
by the Governor, the State Senate and State Assembly. The Task
Force has been asked to analyze and make recommendations
concerning the optimal use of the States regional OTB system
with an emphasis on the systems capability to raise revenues
for State and local governments and strengthen the racing and
breeding industries in New York. The Task Force submitted its
report to the Governor in January 2010.
The objectives of our audit were to assess the financial condition
of the five regional Corporations outside New York City, and todetermine what actions the Corporations have taken to improve
their financial condition. Our audit addressed the following
related questions:
Objectives
Table 1 OTB Wagering Locations
Corporation Branches Remote Wagering Locations Tele-theater
Capital OTB 40 36 2
Catskill OTB 23 5 1
Nassau OTB 11 8 1
Suffolk OTB 13 15 1
Western OTB 35 7 1
____________________2 As presented in this report the term handle is synonymous with the term net
handle as used in the New York State Racing and Wagering Board Annual and
Simulcast Report.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
8/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 7
Comments of CorporationOfficials
Is the financial condition of the five regional OTB
Corporations deteriorating?
Have regional Corporation officials implemented plans to
improve their Corporationsfinancial condition by raising
revenues and reducing costs?
For the period January 1, 2004 to June 30, 2009, we interviewed
Corporation officials, reviewed the Racing Law, examined
Corporation records and reports and other documentation, and
analyzed audited financial statements for the five years ended
December 31, 2008.
We conducted our audit in accordance with generally accepted
government auditing standards (GAGAS). More information on
such standards and the methodology used in performing this audit
are included in Appendix E of this report.
The results of our audit and recommendations have been discussed
with Corporation officials and their comments, which are included
in Appendix D, have been considered in preparing this report.
Scope and Methodology
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
9/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER8
Financial Condition
The Corporations financial condition determines their ability
to continue to make statutory and contractual payments, cover
operating expenses, and provide future revenue streams to
participating local governments. The financial condition of the
States five regional OTBs has substantially deteriorated over
the course of the last several years. Total handle for the five
Corporations declined by 10 percent in this five-year period;
further, in the first five months of 2009, handle fell by 10 percent
when compared to the same period in 2008. Various factors
account for the significant and continuing downturn in handle,
including a diminished interest in horseracing, competition from
unregulated internet gambling sites, and restrictions on the siting
of new remote wagering locations. After the Corporations paybettors, they pay out a large portion (56 percent over the five-year
period) of the remaining handle to the racing industry, the State,
and local governments. Operating revenues what remains after
Corporations make these payments declined by an average of
13 percent at four of the five Corporations between 2004 and
2008. Although most of the Corporations have reduced their
operating expenses, the Corporations net operating revenues
their collective bottom line declined by 67 percent during this
period.
We examine the reasons for the Corporations deterioratingfinancial condition below, and report on cost savings and revenue
enhancement opportunities the Corporations can introduce, or
continue to pursue, in the following section. However, given the
significant amount of the up front payments the Corporations
must make to the racing industry and government, and the extent
to which these payments reduce operating revenues, we believe
that Corporations will be unable to cut expenses fast enough
to continue as financially viable entities if no action is taken to
reduce these required payments.
All five Corporations have experienced declines in handle
over the five-year period 2004 through 2008. Collectively, the
Corporations have experienced a 10 percent decline in handle
approximately $102.6 million over this period. The following
chart shows the change in handle during the last five years.
Decline in Handle
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
10/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 9
Catskill experienced the greatest percentage decline in handle
since 2004 (down 15 percent), while Suffolk saw the largest decline
in dollars, at $26.7 million. Details of the decline in OTB handle,by Corporation, for 2004 through 2008, are shown in Appendix
B. Further, this trend of diminished handle is worsening: each
Corporations handle from January through May 2009 was down
compared to the same period in 2008, as shown in Table 2.
Table 2 Decline in OTB Handle: May 2008 vs. May 2009
January - May 2008 January - May 2009 Difference % Change
Capital $78,457,217 $71,888,046 $(6,569,171) -8%
Catskill $54,979,786 $47,352,416 $(7,627,369) -14%
Nassau $125,778,178 $113,632,745 $(12,145,433) -10%Suffolk $77,250,593 $68,211,952 $(9,038,640) -12%
Western $61,303,903 $56,092,798 $(5,211,104) -9%
Total $397,769,677 $357,177,957 $(40,591,717) -10%
Economic changes and trends, competition, and restrictions for
siting remote wagering locations have all contributed to this
overall decline in the Corporations handle, as follows:
Economic and Trend Changes The downturn in the
economy, which began in the fall of 2008, continues to reducethe total amounts wagered on horseracing and at other venues.
Furthermore, there is a general decline in interest in horseracing,
as demonstrated by decreased attendance at most State racetracks.
Over the past five years, the total amount bet on horseracing
across the United States has declined from $15 billion in 2004
to $13.6 billion in 2008, a decline of almost 10 percent. In 2008,
U.S. total wagers were down 7 percent compared to the prior
year, while the Corporations handle was down 5 percent.
Off-Track Be tting Corporation Handle
2004-2008
$850,000,000
$900,000,000
$950,000,000
$1,000,000,000
$1,050,000,000
2004 2005 2006 2007 2008
Year
Dollars
Handle
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
11/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER10
Competition In addition to competing with other entities in the
gaming industry, such as casinos, video gaming and government-
sponsored lotteries, the Corporations also contend with a
relatively new source of competition: out-of-state advance deposit
wagering (ADW) companies. The Racing Board decided in early
2008 to ease restrictions on ADWs to allow them to take internetwagers on races from New York State residents. Currently, the
ADWs are not licensed or regulated in New York State, and are
not subject to the Racing Law and other regulatory requirements,
as are the Corporations. The Corporations have sought an opinion
from the New York State Attorney Generals Office regarding the
legality of ADWs operations in the State.
The handle lost to ADWs could be significant. According to handle
figures published by the State of Oregon, where a hub of ADWs
currently operates, Oregon ADWs generated over $1.3 billion
in handle in 2008, about 10 percent of the total of $13.6 billionwagered in the U.S. in 2008. The total handle for New York State
tracks and the Corporations in 2008 was more than $2.4 billion,
representing 18 percent of the amount wagered nationwide.
Corporation officials estimate that, in 2008, they potentially lost
as much as $236 million in wagers processed through these sites.
While we are unable to confirm these estimates, any handle lost
to ADWs is money that the States racing industry and State and
local governments do not receive.
Remote Location Sites The Racing Law gives regional harness
tracks the authority to approve or deny placement of OTB
branches and remote wagering locations that are located within a
40mile radius of the harness track. Capital reports that regional
harness tracks have denied placements of remote wagering
locations at two hotels and two restaurants in the Albany area
in 2009. Remote wagering sites are less expensive to operate
because they are located in non-OTB establishments that the
Corporations are not required to staff. Capital officials stated
that their efforts to replace unprofitable branches with lower-cost
remote wagering locations are seriously limited because of the
veto power harness tracks hold regarding their placement.
The majority of the Corporations handle (about 76 percent)
is returned to bettors. After bettors are paid, handle is further
reduced by statutory distributions the Corporations pay to the
racing industry and the State, and by surcharges they pay to
local governments. For the five-year period, the Corporations
paid about $665 million, or more than 56 percent of their $1.18
billion in remaining handle, in the form of statutory distributions
Decline in OperatingRevenues
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
12/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 11
and surcharges. The remaining handle plus income from other
sources equals total operating revenues. Total operating revenues
decreased by over $10 million (8 percent) between 2004 and 2008,
as shown in Table 3; excluding Western, the only Corporation
whose revenues grew over this period, operating revenues
decreased by more than 13 percent. The substantial amountsCorporations must pay up front to the racing industry, the
State and local governments significantly reduces Corporations
operating revenues and contributes to their deteriorating financial
condition.
Table 3 - OTB Financial Condition Analysis: 2004 2008
2004 2005 2006 2007 2008 % Change Total
tal Handle $1,009,545,163 $1,015,147,559 $996,036,929 $954,764,616 $906,948,324 -10% $4,882,442,591
:
urned to Bettors $766,336,760 $770,168,185 $755,559,749 $724,546,569 $688,422,930 -10% $3,705,034,193maining Handle $243,208,403 $244,979,374 $240,477,180 $230,218,047 $218,525,394 $1,177,408,398
:
utory Payments $102,100,136 $102,036,143 $101,984,058 $96,674,896 $95,458,654 -7% $498,253,887
harges Paid to
al Governments $21,731555 $21,212,662 $20,637,776 $19,880,619 $18,544,472 -15% $102,007,084
er Surcharges 3 $13,320,664 $13,523,544 $13,359,639 $12,601,541 $11,773,947 -12% $64,579,335
:
er Revenue: $16,698,920 $18,148,162 $20,805,506 $18,207,031 $19,721,487 18% $93,581,106
al Operatingenue $122,754,968 $126,355,187 $125,301,213 $119,268,022 $112,469,808 -8% $606,149,198
% Change N/A 3% -1% -5% -6%
____________________3 These other surcharges comprise monies derived from section 532 income
that the Racing Law directs can be set aside to fund the Corporations capital
acquisition funds, or retained to use for quarterly distributions from the
Corporations net revenues.
Statutory Distributions and Surcharges Statutory distributions
and surcharges represent a significant financial outlay for the
Corporations. During the five years ended December 31, 2008,
the Corporations paid a total of $665 million for statutory
distributions and surcharges. Of this amount, $498.3 million was
for legally required monthly distributions, as shown in Table 4.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
13/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER12
Table 4 - OTB Statutory Distributions: 2004-2008
2004 2005 2006 2007 2008 Total
Racing Industry
$85,892,324 $85,239,571 $85,992,594 $81,126,612 $79,669,776 $417,920,877
New York State
$15,805,854 $16,391,024 $15,617,891 $15,201,283 $15,477,193 $78,493,245
City of Albany $338,391 $349,972 $325,134 $304,435 $270,200* $1,588,132
City of Niagara
Falls
$63,567 $55,576 $48,439 $42,566 $41,485* $251,633
Total Statutory
$102,100,136 $102,036,143 $101,984,058 $96,674,896 $95,458,654 $498,253,887
* In 2008, these payments were included under operating expenses in the New York State Racing and Wagering Annual
and Simulcast Report. However, for comparison purposes in this global report, we have included these payments
under statutory payments and deducted them from operating expenses.
The majority of the amounts paid in statutory distributions (84
percent) were payments to the racing industry4 totaling $417.9
million. Distributions to the racing industry are made to:
In-state racetracks based on statutory rates depending on
the type of wager and other contractual agreements
Out-of-state racetracks based on specific contractual
agreements
Certain horse breeding funds created to support andpromote in-state horse breeding and racing.
Among the payments made to in-state racetracks are those
made to harness tracks in conformance with New York States
Hold Harmless law, enacted in 2003. This law authorized the
Corporations to accept wagers on nighttime (post times after
7:30 p.m.) thoroughbred racing. In return, the Corporations
were required to pay in-state regional harness tracks both a
percentage of their handle to compensate them for lost bets, and
other Maintenance of Effort payments. The Racing Board
calculates the amounts the Corporations must pay harness tracks
____________________4 These payments are commissions to the tracks and payments for breeding
and development funds. They include payments to in-state tracks based on
statutory rates, out-of-state tracks based on contractual agreements, and
designated horse breeding funds.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
14/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 13
based on the 2002 total handle figures.5 Although wagers on
nighttime races were expected to generate as much as $400
million in additional handle for the Corporations, the increase in
handle never materialized; in fact, handle declined significantly
since 2003. However, the Corporations are still paying harness
tracks based on handle amounts in 2002, a year when total handle(including NYC OTB handle) was over $2 billion, one of the
highest in OTB history.
Also included in the statutory distributions are payments to New
York State for pari-mutuel taxes and breakage, regulatory fees to
the Racing Board, and uncashed tickets. Capital and Western also
make contractual payments to the Cities of Albany and Niagara
Falls, respectively,6 in lieu of paying other local taxes.
The Corporations also pay monthly surcharges to participating
local governments (i.e., local governments that authorize OTBlocations and accept OTB surcharge revenue), and pay additional
surcharges to local governments with tracks. Monthly surcharge
payments to local governments totaled $102 million during this
five-year period. The Racing Law also allows the Corporations to
set aside a portion of handle to help pay for capital acquisitions/
improvements, and to retain another portion of handle to use
for quarterly distributions from the Corporations net revenues.
These other surcharges totaled $64.6 million during the same
period.
Operating Revenues Operating revenues have declined at
four of the five Corporations. From 2004 to 2008, total operating
revenues generated at these four Corporations declined by $13.4
million (13 percent) from $105.2 million in 2004 to $91.5 million
in 2008. Catskill and Suffolk each experienced a 16 percent decline
in operating revenues since 2004, while Capital and Nassau saw
13 and 9 percent declines, respectively. Only Western realized
an increase in operating revenue, which is primarily attributable
to the additional income generated by Batavia Downs Gaming
Facility, which Western owns and operates. Even after including
________________5 Several Corporations participated in a lawsuit against the Racing Board to
seek judicial review of the Racing Boards calculation methodology relative to
the Hold Harmless and Maintenance of Effort payments. In December 2008,
the New York State Court of Appeals overruled a prior decision and ruled
against the Corporations, requiring them to make the payments.6 Pursuant to the Racing Law, Capital and Western have contractual agreements
with the Cities of Albany and Niagara Falls whereby each City receives 1
percent of the tele-theater handle in these locations in lieu of any other local
tax.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
15/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER14
the 19 percent increase in Westerns operating revenues over this
period, the Corporations total operating revenues still dropped by
8 percent, as shown in Table 5.
Table 5 - OTB Operating Revenues: 2004-2008
2004 2005 2006 2007 2008% Change2004-2008
pital $25,640,958 $25,371,027 $24,983,353 $23,779,109 $22,395,470 -13%
tskill $18,530,607 $19,703,487 $18,124,840 $17,265,115 $15,568,064 -16%
ssau $34,853,007 $37,039,379 $36,890,436 $35,248,464 $31,677,772 -9%
ffolk $26,138,670 $25,976,848 $26,052,793 $23,237,360 $21,858,154 -16%
b-total $105,163,242 $108,090,741 $106,051,422 $99,530,048 $91,499,460 -13%
stern $17,591,726 $18,264,446 $19,249,791 $19,737,974 $20,970,348 19%
Total $122,754,968 $126,355,187 $125,301,213 $119,268,022 $112,469,808 -8%
The Corporations net operating revenues operating revenuesless operating expenses constitute their collective bottom
line, and a measure of their overall financial viability. The
Corporations bottom line dropped by $7.9 million (67 percent)
during this five-year period, as shown in Table 6, even though
they reduced their overall operating expenses. Suffolks bottom
line actually declined 1,475 percent between 2004 and 2008.
Only Western saw growth in its net operating revenues.
Decline in NetOperating Revenues
Table 6 - OTB Net Operating Revenues (Loss): 2004-2008
2004 2005 2006 2007 2008 % Change
Capital $1,862,561 $2,820,399 $2,701,454 $1,588,289 $992,021 -47%
Catskill $5,124,083 $6,551,870 $5,245,581 $4,601,979 $3,220,092 -37%
Nassau $7,001,493 $6,182,704 $5,403,873 $4,576,128 $146,099 -98%
Suffolk $137,024 $442,987 ($59,607) ($437,550) ($1,884,212) -1475%
Western ($2,163,620) ($1,377,042) $119,821 $157,154 $1,527,100 171%
Total $11,961,541 $14,620,918 $13,411,918 $10,486,000 $4,001,010 -67%
The Corporations net operating revenues dropped significantly
even though four of the five Corporations reduced their operating
expenses, which include payroll and other costs for branch and
corporation management. The Corporations operating expenses
declined by 2 percent overall during the 2004 2008 period. (See
Appendix C for details). Four Corporations cut their operating
expenses by 9 percent (Capital and Suffolk), 8 percent (Catskill)
and Western (1 percent), respectively; only Nassau saw an increase
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
16/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 15
Table 7 - Total Distributions to Local Governments: 2004-2008
2004 2005 2006 2007 2008 Total
Surcharge Revenues
for Participating Local
Governments
$16,174,022 $16,150,441 $15,654,830 $14,796,587 $13,790,804 $76,566,684
Surcharge Revenues toLocal Governments with
Tracks
$5,557,533 $5,062,221 $4,982,946 $5,084,032 $4,753,668 $25,440,400
Total Surcharges Paid to
Local Governments $21,731,555 $21,212,662 $20,637,776 $19,880,619 $18,544,472 $102,007,084
Net Operating Revenues
Distribution 8 $15,617,925 $15,667,190 $13,367,539 $12,486,971 $5,895,987 $63,035,612
TOTAL
$37,349,480 $36,879,852 $34,005,315 $32,367,590 $24,440,459 $165,042,696
____________________7 The quarterly distributions are made after the Corporations deduct
contributions to the capital acquisition fund. The fund permits the Corporations
to reserve revenue to pay debt service costs and to buy capital assets without a
negative effect on cash flow required for operations.8 The Western OTB experienced losses in net revenues for distributions
in 2004 and 2005 of approximately $2.2 and $1.4 million while Suffolk
OTB experienced similar losses in 2005-2008 of approximately $473,000,
$477,000 and $1.9 million. When totaling distributions to local governments
we computed the distributions as zero.
in operating expenses, which rose 13 percent over this five-year
period from $27.9 million in 2004 to $31.5 million in 2008.
The Corporations are required to distribute their net operating
revenues to local governments quarterly.7 Local governments
receive these distributions in addition to the monthly surchargerevenues. In summary, the five Corporations have distributed
both monthly surcharge revenues and net operating revenues to
local governments totaling approximately $165 million over the
last five years, as shown in Table 7.
Because the Corporations net operating revenues declinedso dramatically, they had less money to distribute to local
governments: in total, local governments received about 62
percent less money from quarterly distributions in 2008 ($5.9
million) than they did in 2004 ($15.6 million).
In comparing all the payments local governments receive from
the Corporations - that is, both monthly surcharge revenues
and quarterly distributions local governments received 35
percent less revenue in 2008 ($24.4 million) than they did in
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
17/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER16
To State Policymakers
1. Given the continuing decline in both the Corporations revenues
and the amounts they can distribute to the racing industry,
New York State, and local governments, we recommend that
policymakers should review:
The formula used to calculate the Corporations payments
to harness tracks, as required by the 2003 Hold Harmless
law
The Corporations' authority to site remote wagering
locations
Whether advance deposit wagering (ADW) companies
should be subject to the Racing Law and regulatory
requirements
The formulas used to calculate the Corporations up-
front statutory and surcharge payments to balance the
State's revenue objectives with the Corporations financial
viability.
Recommendation
2004 ($37.3 million). Without improvement in the Corporations
financial condition, including changes that help reverse the
decline in handle and the downward trend in operating revenues,
the Corporations financial viability and their ability to provide
revenues to local governments is in question.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
18/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 17
Cost Savings and Revenue Enhancement Steps
The five regional OTB Corporations have introduced various cost
savings measures and pursued revenue enhancement opportunities.
However, the actions taken thus far have not been adequate to
staunch the downward slide in net operating revenues. Below we
examine the steps the Corporations have already taken such as
enhanced rewards programs and broader use of new, lower-cost
betting mechanisms and others they should consider taking
like increased internet betting to remain financially viable. State
and local government officials have every interest in preserving
the Corporations financial health because OTB monies have been
a steady source of revenues.
Cost Cutting Actions Each Corporation recognizes thatpersonal service-related costs represent a significant portion of
its operating expenses and have reviewed these areas for cost
savings opportunities. For example, Capital has eliminated a
vice president position and reduced its workforce by about 14
percent since January 2007. Western reduced wage structures for
employees hired after April 2007; Suffolk imposed a hiring freeze,
reduced staffing and work hours, and began requiring employee
contributions toward health insurance benefits in June 2009.
Several Corporations have reviewed and adjusted their branch
operations to cut costs and make the branches more profitable.Capital has modified 12 branches since 2007, turning some into self-
service locations and reducing hours at others. Catskill has closed
three branches, and reduced hours at other locations. For example,
Catskill closed certain branches on Mondays and Tuesdays, which
are historically days when attendance and wagering are low.
The Corporations have also implemented a variety of other cost
savings actions, such as renegotiating rental costs for branch
locations and reducing the number of professional contracts.
Several Corporations have also cut their health insurance costs.For example, Capital reduced its health care costs by switching
from a self-financing plan to a health maintenance organization,
and Suffolk required its employees to contribute 15 percent toward
the costs of their health insurance premiums effective June 2009.
Corporations also closed six branches, converted 12 branches to
self-service locations to reduce costs, cut operating hours, and
combined operations of certain branches to save on manager salary
costs.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
19/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER18
Corporations have also worked to save money on ordinary
operating expenses. For example, Suffolk has reduced its
operating costs by processing payroll in-house. Nassau
required its managers to turn in their Corporation-supplied
vehicles. Nassau then sold all but three of these vehicles,
which it retained as pool cars. Suffolk reduced its vehiclefleet by 11 cars.
Revenue Enhancements In an effort to increase revenues and
patron interest and to contend with the increased competition
from out-of-state (e.g., ADW) wagering entities, several of
the Corporations have begun to introduce reward programs.
For example, Capital OTB began offering cash rewards9 in
2006; beginning with the 2007 season, Capital has also run
a promotion during the Saratoga racing season to help attract
new patrons. Nassau has recently launched a Player Rewards
program, known as the Players Club, using a structure thatgives more rewards to patrons who wager on-line than to
those who wager by phone. In addition, the program pays
out more rewards to patrons who place higher-revenue bets
or exotic bets, both of which generate more handle. Western
offered a new wager, a 10-cent superfecta,10 in July 2007 to
enhance patron interest and increase handle.
Improved Betting Mechanisms The Corporations have
begun to introduce newer betting mechanisms that may be
able to lower costs, provide better service and improve their
operating results. For example, each of the five Corporations
has introduced telephone betting systems with varying degrees
of automation. Suffolk and Nassau share an automated
telephone operation that provides patrons with the choice
of speaking to an operator or accessing automated wagering
services. In July 2005, Capital introduced a system that could
significantly improve the efficiency of its telephone betting
operations. Capitals automated system allows for touch-
tone, voice-activated, and operator-assisted wagering. The
system monitors queue volume and time, operator call time,
number of answered calls, and number of dropped calls, andit routes VIP accounts (patrons who generate large amounts of
____________________9 With cash rewards, patrons earn reward points based on the dollars they
wager at various tracks (outlined in the specific reward program). The
objective is to provide bettors with incentives to place more bets.10 A 10-cent superfecta allows the bettor to box four horses in a race
(i.e., pick the first four finishers in order) for $2.40, making this type of bet
much more affordable for average bettors.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
20/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 19
handle) to more experienced operators. The system also provides
comprehensive reporting and tracking options, and records all
transactions for audit and inquiry/complaint resolutions.
In addition, each of the five Corporations has introduced remote
wagering mechanisms that allow bettors to place wagers atestablishments such as bowling alleys and restaurants. These
mechanisms, when used as an alternative to staffed sites, provide
the advantage of cost savings, because the Corporation does not
have to staff, or pay rent for, a Corporation-operated building;
instead, the Corporation pays only a commission, based on the
handle generated or on a pre-approved set rate, to the owner of
the establishment. The presence of low-cost remote wagering
mechanisms in a variety of establishments also offers the potential
of attracting new patrons.
However, internet wagering offers the greatest potential forincreased handle at a relatively low cost. Although each of
the Corporations has an internet presence, only Capital and
Nassau OTB have introduced internet-wagering options for
their patrons. Capital began offering internet-wagering options
in January 2008, while Nassau launched its internet platform in
May 2008. Officials at Catskill, Suffolk and Western told us they
are exploring opportunities to introduce internet wagering in the
most cost-effective manner.
By more rapidly introducing its newer betting mechanisms and
enabling internet wagering, all the Corporations may be able to
improve their operating results and the Corporations overall net
operating revenues. Currently, the Corporations accept wagers at
branch offices, at tele-theaters, over the telephone, and through
remote wagering locations; two Corporations also accept internet
wagers. As shown in Table 8, some of these newer wagering
methods have lower costs to operate than the more traditional
methods. For example, branches and tele-theaters, which cost
an average of 10 percent and 7 percent of handle, respectively,
are the highest-cost methods of serving patrons. The operations
of telephone and remote wagering locations are, on average, farmore economical, since their operational costs are 5 percent and
4 percent of handle, respectively. Internet wagering is the least
costly, at only 2.5 percent of handle. By not offering internet
wagering capabilities, Catskill, Suffolk and Western are missing
the opportunity to reduce their operating costs, increase their
handle, or both.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
21/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER20
Table 8 - 2008 Operating Costs as a Percent of Handle
Branches Tele-theater Telephone Remote Site Internet
Capital 10% 6% 6% 6% 2%
Catskill 9% 5% 5% 3% N/A
Nassau 9% 7% 5% 4% 3%
Suffolk 10% 6% 5% 4% N/A
Western 12% 12% 5% 5% N/A
Average 10% 7% 5% 4% 2.5%
We also found that the Corporations may be able to save money
by modifying operations at certain branches. When we analyzed
the 2008 operating costs of individual branches, we identified
wide variations in operating expenses as a percent of handle. For
example, operating expenses at Capitals 40 branches ranged from
4 percent to 38 percent of the individual branchs handle. Other
Corporations had similarly large variations in their branches
operating costs, as a percentage of the branch handle, with rangesfrom 4 to 27 percent at Western; from 2 to 21 percent at Catskill;
from 3 to 15 percent at Nassau; and from 4 to 16 percent at Suffolk.
Several Corporations had branch locations where expenses were
greater than revenues in 2008. Although Corporation managers
have acted to close or make modifications at under-performing
branches, further cost-cutting steps may be needed.
Collaborative Efforts Together, the five Corporations have
the opportunity to collaborate on a variety of common issues to
advance their collective bottom line. According to Corporationofficials, they have discussed establishing a unified platform
for tote systems11 and internet wagering and developing shared
marketing and branding campaigns.
Corporation officials told us that they have worked together,
and will continue to do so to improve their operations and
profitability. According to Corporation officials, they routinely
work with the New York City OTB to negotiate simulcast signals
for all six of the regional Corporations. Officials also told us
that the Corporations joined in a statewide marketing effort when
they took part in a Pick 6 Contest for the Breeders Cup anda statewide handicapping contest; more recently, they jointly
____________________11 Tote systems run pari-mutuel betting, calculating payoff odds, displaying
them, and producing tickets based on incoming bets.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
22/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 21
developed a request for proposal for a statewide totalizator12
contract for all six Corporations, including New York City.
However, this proposal has since stalled because New York City
OTB entered into bankruptcy proceedings in December 2009.
In addition, Corporation officials said there has been continuous
discussion about developing a unifi
ed platform for OTB internetwagering. With Capitals and Nassaus decision to pursue internet
wagering platforms of their own, the three remaining Corporations
are discussing whether they should develop their own individual
internet-wagering options, develop a joint platform or join the
existing platforms to offer internet-wagering capabilities of their
own. Other collaborative efforts under discussion include the
joint purchase of insurance, a joint public relations plan and a
24/7 television channel for the Corporations, similar to a channel
that Capital currently operates.
The Corporations have reduced their expenses, and have, to agreater or lesser extent, pursued revenue enhancement and cost-
cutting measures. However, given their recent history of declining
handle and net operating revenues, the Corporations must take
stronger actions to keep and/or attract patrons; economize
wherever possible by closing unprofitable locations; initiate or
expand internet operations; and save money through collaboration.
If the Corporations can improve their financial condition, State
and local taxpayers will continue to receive significant statutory
distributions and surcharge revenues that governments count on
to help balance their budgets.
2. Corporation management should continue efforts to increase
revenues through innovative marketing ideas (e.g., cash
rewards).
3. Corporation management should continue to focus on increasing
revenues from the more cost-effective telephone betting,
internet betting and remote wagering location operations.
4. Catskill, Suffolk and Western management should explore
opportunities to implement internet-wagering capabilities.
____________________12 A totalizator is a computer system that computes the wagering and payoffs
in pari-mutuel wagering. Having one statewide totalizator would save money
by consolidating the payoff calculation function for all regional OTBs. Patrons
could also have one account for all New York State tracks and OTBs, and be
able to cash tickets at any of these entities.
Recommendations
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
23/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER22
5. Corporation management should continue to analyze branch
operations and consider reducing costs at under-performing
branches by converting them to remote wagering locations or
closing them altogether.
6. Corporation management should perform a comprehensiveassessment of all Corporation operating areas to identify
further cost savings opportunities.
7. Corporation management should collaborate to identify cost
savings and revenues enhancement opportunities, as well as
cost efficiencies, where appropriate.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
24/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 23
APPENDIX A
OTB TERMS AND DEFINITIONS
Handle Handle is the amount wagered by off-track betting patrons through branches, remote
wagering sites, tele-theater, telephone, and internet venues (refered to as net handle in the NewYork State Racing and Wagering Board Annual and Simulcast Report).
Participating Local Government A participating local government has decided to take part in
off-track betting operations.
Non-participating Local Government A non-participating local government has decided not to
take part in off-track betting operations.
Statutory Distributions Statutory distributions are based on complex formulas in the States
Racing Law. They are paid to New York States horse racing industry, which includes various race
tracks and horse breeding funds, and to the State.
Surcharge Fees Paid to Local Governments The Corporations must impose a 5 percent surcharge
on the portion of pari-mutuel wagering pools that is distributable to people who placed bets at
OTB facilities. On a monthly basis, the Corporations distribute the surcharge fees they collect to
participating local governments, and pay an additional fee to local governments where tracks are
located.
Operating Revenues Operating revenues comprise the handle that remains after the Corporations
makes required payments (paying winning bettors, allocating statutory distributions, and paying
surcharge fees), along with any types of miscellaneous income.
Operating Expenses These expenses include the Corporations payroll, utilities, etc. for both
Corporation executive offices and for branch, tele-theater and remote wagering locations.
Net Operating Revenues Operating revenues less operating expenses results in net operating
revenues.
Capital Acquisition Fund This fund permits the Corporations to reserve revenues for the payment
of debt service and the acquisition of capital assets without negatively affecting the Corporations
cash flow required for operations.
Distribution to Local Governments This distribution pays out the Corporations entire net
operating revenues (after contributions are made to the capital acquisition fund) to participating
local governments.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
25/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER24
APPENDIX B
OTB HANDLE, BY CORPORATION: 2004 - 2008
2004 2005 2006 2007 2008 TOTALCapital $212,235,503 $213,061,004 $209,922,787 $201,839,522 $190,544,474 $1,027,603,290
Catskill $143,119,690 $146,522,643 $143,032,748 $131,807,834 $121,869,536 $686,352,451
Nassau $299,355,534 $311,114,349 $307,674,951 $293,523,497 $281,957,687 $1,493,626,018
Suffolk $205,292,864 $199,046,909 $195,177,802 $188,158,721 $178,590,944 $966,267,240
Western $149,541,572 $145,402,654 $140,228,641 $139,435,042 $133,985,683 $708,593,592
TOTAL $1,009,545,163 $1,015,147,559 $996,036,929 $954,764,616 $906,948,324 $4,882,442,591
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
26/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 25
APPENDIX C
OTB NET OPERATING REVENUE (LOSS),
BY CORPORATION: 2004 - 2008
Year Capital Catskill Nassau Suffolk Western Total
2004
Operating
Revenues
$25,640,958 $18,530,607 $34,853,007 $26,138,670 $17,591,726 $122,754,968
Operating
Expenses
$23,778,397 $13,406,524 $27,851,514 $26,001,646 $19,755,346 $110,793,427
Net Operating
Revenues
$1,862,561 $5,124,083 $7,001,493 $137,024 ($2,163,620)
$11,961,541
2005
OperatingRevenues
$25,371,027 $19,703,487 $37,039,379 $25,976,848 $18,264,446 $126,355,187
Operating
Expenses
$22,550,628 $13,151,617 $30,856,675 $25,533,861 $19,641,488 $111,734,269
Net Operating
Revenues
$2,820,399 $6,551,870 $6,182,704 $442,987 ($1,377,042)
$14,620,918
2006
Operating
Revenues
$24,983,353 $18,124,840 $36,890,436 $26,052,793 $19,249,791 $125,301,213
Operating
Expenses
$22,281,899 $12,879,259 $31,486,563 $26,112,400 $19,129,970 $111,890,091
Net OperatingRevenues $2,701,454 $5,245,581 $5,403,873 ($59,607) $119,821 $13,411,122
2007
Operating
Revenues
$23,779,109 $17,265,115 $35,248,464 $23,237,360 $19,737,974 $119,268,022
Operating
Expenses
$22,190,820 $12,663,136 $30,672,336 $23,674,910 $19,580,820 $108,782,022
Net Operating
Revenues
$1,588,289 $4,601,979 $4,576,128 ($437,550)
$157,154 $10,486,000
2008
Operating
Revenues
$22,395,470 $15,568,064 $31,677,772 $21,858,154 $20,970,348
$112,469,808
Operating
Expenses
$21,403,449 $12,347,972 $31,531,673 $23,742,366 $19,443,248 $108,468,708
Net Operating
Revenues
$992,021 $3,220,092 $146,099 ($1,884,212)
$1,527,100 $4,001,100
% Change in NetRevenues: 2004-08 -47% -37% -98% -1475% 171% -67%
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
27/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER26
APPENDIX D
RESPONSES FROM CORPORATION OFFICIALS
A draft copy of this global report was sent to local officials in the five Corporations we audited. We
received responses from Suffolk, Capital, and Catskill officials, and have provided excerpts fromtheir responses below. Although Western and Nassau officials had the opportunity to respond, they
chose not to do so.
Suffolk OTB
However, despite our ongoing and largely successful efforts to reduce costs, we will be unable
to become profitable in the future unless the State Legislature and the Governor addresses the
antiquated and inequitable statutory revenue distributions all OTBs are required to make.
Capital OTB
Capital OTBs management has reviewed the draft and believes that the issues discussed in the
report outline the relevant circumstances (economic changes and trends, competition, restrictions
for sitting remote wager locations and the statutory distributions and surcharges [that] represent
a significant financial outlay for the Corporations) that have resulted in the financial decline
within the States off-track betting corporations.
On page 16 of the report the Audit outlines a number of areas that State Policy makers should
review. While we appreciate the audit correctly raising these issues and highlighting them as
having a detrimental impact on OTB business, I would submit that the time for reviews anddiscussions are long past. It is time for the State Legislature and Executive Branch to take action.
As noted in the Audit Report, OTBs must be accountable and must continue to build on the
steps they have taken to become more cost effective and efficient. To point, the OTBs have taken
considerable actions to become more efficient and have entered into a Joint Venture Agreement
or JVA to solidify that approach. Thus far four of the States off-track betting corporations have
signed onto the JVA These Corporations are committed to find new and innovative ways to
run our operations more efficiently, promote New York racing and provide the best in customer
service.
Catskill OTB
a brand new harness racetrack and eight video lottery racinos at racetracks commenced
operations across New York Statethe amounts of monies wagered at these such facilities has
negatively impacted wagering at ALL prior existing racing and wagering facilities within New
York State.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
28/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 27
Despite cost cutting, the required statutory payments are depleting the monies available for
distribution to State and Local Government.
With the current statutory payment schedule, we cannot afford what the out of state ADWs offer,
as they do not have the same payment obligations we have.
Under the current payment structure all other recipients of OTB monies, New York State,
racetracks, and breeders all get their share off the top.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
29/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER28
APPENDIX E
AUDIT METHODOLOGY AND STANDARDS
We interviewed officials at the Regional Off-Track Betting Corporations to gain an understanding
of the operations at each Regional location. We reviewed the State Racing Law to familiarizeourselves with the statutes that impact the OTBs, and we reviewed the Corporations records and
reports. Our review of the Corporations records and reports included the following:
Read the Board of Directors meeting minutes and any relevant policies adopted by the
Board
Analyzed total handle figures
Reviewed and analyzed the Districts financial condition from 2004 - current and identified
trends in operating revenues, statutory distributions to the racing industry, operating
expenses and net profit/losses
Obtained an understanding of the Corporations budget process and monitoring. We
reviewed budget status reports and analyzed the 2004-08 budget to actual. We compared
major revenue estimates in the 2009 budget with the last completed fiscal years actual
(2008) revenue figures.
o Additionally, we compared the major revenue estimates in the 2009 budget to the trend
in actual revenues over the past five years (2004-2008). We looked for unreasonable
decreases or increases, and investigated significant variances.
o We identified the Corporations major expenditures, and compared expenditure
estimates in the 2009 budget with the last completed fiscal years (2008) actual
expenditure figures. Additionally, we compared the major expenditure estimates in
the 2009 budget to the actual expense trends over the past five years (2004-2008), and
checked for unreasonable decreases or increases or a trend of no increases. We then
investigated significant variances.
o We reviewed debt service, personal services, retirement and employee benefits
expenditures to determine if estimates were reasonable.
Identified revenues and expenditures attributable to phone, internet, branches and remotewagering sites
Reviewed and analyzed the OTB revenues received by State and local governments from
2005 2009 to identify trends, and the impact of any trends on localities
Reviewed CPA and prior OSC reports
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
30/32
DIVISIONOF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITY 29
Reviewed New York State Racing and Wagering Annual and Simulcast reports for the five
years ended December 31, 2008
Asked Corporation officials about the Corporationsfinancial outlook and external concerns
Inquired as to any pending legal concerns
Tested data reliability of the Corporations audited financial statements and supporting
schedules
Reviewed debt schedules.
We conducted our performance audit in accordance with generally accepted government auditing
standards (GAGAS). Those standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and conclusions based on our
audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objectives.
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
31/32
OFFICEOFTHE NEW YORK STATE COMPTROLLER30
APPENDIX F
HOW TO OBTAIN ADDITIONAL COPIES OF THE REPORT
To obtain copies of this report, write or visit our web page:
Office of the State Comptroller
Public Information Office
110 State Street, 15th Floor
Albany, New York 12236
(518) 474-4015
http://www.osc.state.ny.us/localgov/
-
8/9/2019 Financial Condition of New York State Regional Off-Track Betting Corporations
32/32
APPENDIX GOFFICE OF THE STATE COMPTROLLER
DIVISION OF LOCAL GOVERNMENT
AND SCHOOL ACCOUNTABILITY
Steven J. Hancox, Deputy ComptrollerJohn C. Traylor, Assistant Comptroller
LOCAL REGIONAL OFFICE LISTING
GLENS FALLS REGIONAL OFFICEKarl Smoczynski, Chief Examiner
Office of the State Comptroller
One Broad Street Plaza
Glens Falls, New York 12801-4396
(518) 793-0057 Fax (518) 793-5797
Email: Muni-GlensFalls@osc.state.ny.us
Serving: Clinton, Essex, Franklin, Fulton, Hamilton,
Montgomery, Rensselaer, Saratoga, Warren, Washingtoncounties
ALBANY REGIONAL OFFICEKenneth Madej, Chief Examiner
Office of the State Comptroller
22 Computer Drive West
Albany, New York 12205-1695
(518) 438-0093 Fax (518) 438-0367
Email: Muni-Albany@osc.state.ny.us
Serving: Albany, Columbia, Dutchess, Greene,
Schenectady, Ulster counties
HAUPPAUGE REGIONAL OFFICEIra McCracken, Chief Examiner
Office of the State Comptroller
NYS Office Building, Room 3A10
Veterans Memorial Highway
Hauppauge, New York 11788-5533
(631) 952-6534 Fax (631) 952-6530
Email: Muni-Hauppauge@osc.state.ny.us
Serving: Nassau, Suffolk counties
NEWBURGH REGIONAL OFFICE
Christopher Ellis, Chief Examiner
Office of the State Comptroller
33 Airport Center Drive, Suite 103
New Windsor, New York 12553-4725
(845) 567-0858 Fax (845) 567-0080
Email: Muni-Newburgh@osc.state.ny.us
Serving: Orange, Putnam, Rockland, Westchester
counties
BUFFALO REGIONAL OFFICERobert Meller, Chief Examiner
Office of the State Comptroller
295 Main Street, Room 1050
Buffalo, New York 14203-2510
(716) 847-3647 Fax (716) 847-3643
Email: Muni-Buffalo@osc.state.ny.us
Serving: Allegany, Cattaraugus, Chautauqua, Erie,
Genesee, Niagara, Orleans, Wyoming counties
ROCHESTER REGIONAL OFFICEEdward V. Grant, Jr., Chief Examiner
Office of the State Comptroller
The Powers Building
16 West Main Street Suite 522
Rochester, New York 14614-1608
(585) 454-2460 Fax (585) 454-3545
Email: Muni-Rochester@osc.state.ny.us
Serving: Cayuga, Chemung, Livingston, Monroe,
Ontario, Schuyler, Seneca, Steuben, Wayne, Yates
counties
SYRACUSE REGIONAL OFFICE
Rebecca Wilcox, Chief Examiner
Office of the State Comptroller
State Office Building, Room 409
333 E. Washington Street
Syracuse, New York 13202-1428
(315) 428-4192 Fax (315) 426-2119
Email: Muni-Syracuse@osc.state.ny.us
Serving: Herkimer, Jefferson, Lewis, Madison,
Oneida, Onondaga, Oswego, St. Lawrence counties
BINGHAMTON REGIONAL OFFICE
Patrick Carbone, Chief Examiner
Office of the State Comptroller
State Office Building, Room 1702
44 Hawley Street
Binghamton, New York 13901-4417
(607) 721-8306 Fax (607) 721-8313
Email: Muni-Binghamton@osc.state.ny.us
Serving: Broome, Chenango, Cortland, Delaware,
Otsego, Schoharie, Sullivan, Tioga, Tompkins
top related