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State Lottery

OTB will seek meeting with State Lottery to find solution to State's concerns

By Howard B. Owens

The OTB is ready to do just about anything to avoid having the State Lottery pull all of the video lottery terminals from Batavia Downs Casino.

That was the message from Western OTB attorney Timothy McCarthy following a closed session meeting of the board at the casino and racetrack this morning.

"They're the boss and it's important they are treated as such and that we not get in a fight as to what we may have done," McCarthy said.

While characterizing the issues raised by the State Lottery in a Feb. 3 letter to the OTB board as "procedural" and "administrative," he said the board is taking the warning very seriously and will react accordingly.

He stressed that there are no allegations of criminality or missing money.

Before the board went into closed session, McCarthy said a private meeting was necessary in order to discuss possible litigation.

After the meeting, McCarthy said there is no plan to get involved in a lawsuit, but given the nature of the enforcement action, the possibility of a hearing and the need to preserve attorney-client privilege, he thought the private session was necessary.

"We chose not to be pugnacious," McCarthy said. "We chose to try and work with the Lottery. We take the Lottery very seriously. The determination by the board was, 'let's find the best way to keep peace.' The best way to keep the peace is to go hat in hand to the Lottery. There is no benefit to be achieved by being litigious, but nevertheless, that option, as it obviously must, was considered."

McCarthy noted that Batavia Downs has provided $75 million in revenue for state schools since it opened with VLTs (slot machines) in May 2005. The Downs also provides a good deal of revenue to local government agencies.

He said the board will do what's necessary to maintain that cash flow.

"If they (board members) want to characterize it as going to the woodshed, they may very well characterize it as such," McCarthy said.

The board agreed to send a four-person delegation to Schenectady to meet with Lottery officials in order to find a solution to the threat of closure.

Among the Lottery's requests is that the Downs hire a consultant to help put the procedural and administrative issues back in order. McCarthy did not say so explicitly, but the tone and tenor of his remarks indicate a willingness to follow that advice.

The members of the delegation will be Paul Lattimore, from Cayuga County, Richard Bianchi, Monroe, Richard Siebert, Genesee and Marcia Touhey, Orleans.

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