Western Regional Off-Track Betting officials Sunday said they will correct administrative problems that prompted the New York Lottery to threaten pulling the plug on profitable video lottery games at Batavia Downs racetrack and casino.

The Lottery’s deputy director and general counsel, William J. Murray, last week sent a letter to OTB board members saying the state agency would shut down the video games if the public-benefit corporation did not improve on several administrative deficiencies—including the failure to submit some salary reports.

The letter was in response to “numerous incidents that have concerned us” regarding management of the Batavia Downs casino, said Lottery spokeswoman Jennifer Givner.

“We have recommendations, and we expect them to meet those recommendations,” she added.

The 605 video lottery terminals, installed in 2005, have helped turn around a facility that previously struggled with debts. Western Regional OTB had total gaming revenues of $36 million in 2009, largely because of the video machines.

About half of that went to New York State, while 17 local governments, including the City of Buffalo and Erie County, split $3.7 million.

Western Regional OTB President and Chief Executive Officer Martin C. Basinait confirmed receipt of the letter and said that all of the Lottery’s concerns are correctable.

OTB has owned Batavia Downs since 1998.

“The likelihood of it shutting down is, I think, pretty much nil,” Basinait said.

The administrative problems also included failing to submit minutes of board proceedings. OTB also failed to report a recent debt rollover, as required by the Lottery.

“There’s no money missing. This is more of a not following certain Lottery rules and regulations, not dotting the i’s and crossing the t’s,” said Richard E. Siebert, vice chairman of the board. “A lot of it is clerical misunderstandings.”

For example, the minutes not being forwarded was because of a change in secretaries at Western Regional OTB, he said.

“That’s an oversight,” he said.

“We’ll correct that for sure.”

The Lottery, which holds authority over all state casinos, recommended that Western Regional OTB hire new management or get a consultant to help address the problems.

OTB board members chose the latter option and planned to hire the company that conducts its regular internal audits. The Lottery, however, rejected their choice, saying the company was already too involved with OTB to provide independent guidance, Siebert said.

The board has scheduled a special meeting for Thursday morning to address Lottery concerns.

Siebert said he and Chairman Joseph Gallo have written a letter to Lottery officials requesting more time to find a consultant. Board members also hope to meet directly with Lottery officials, he said.

“We want to work with them. We’ve been a good partner. We’re small, but we’re one of the more successful Lottery agents out there,” Siebert said. “I think we can reasonably work this out.”