Photo by Howard Owens
In a regular monthly meeting on Thursday, the board of directors for Western Regional Off-Track Betting voted to buy out the contracts of CEO Henry Wojtaszek, CFO Jackie Leach, and VP of Operations William White.
The board called the buyout a "renegotiation."
Board President Dennis Bassett issued a press release after the meeting stating, "We have mutually renegotiated these contracts in the best interest of each individual and our corporation."
The statement characterized it as an "amicable separation."
In a statement issued after the meeting, Wojtaszek said:
I’ve enjoyed my 15 years here at Batavia Downs, and I want to thank the board and all of our 400 employees for their support. My focus now will be on ensuring a seamless transition to new leadership.
I see a great future for this organization as they build upon many of our accomplishments that have made Batavia Downs a first-class entertainment venue.
After the meeting, when asked if this change in job status didn't constitute a firing, Basset said, "It's at their request."
He also said there was no political pressure to status change.
"We don't run this organization based on politics," Bassett said. "This is a business. There's no political pressure here to do anything."
Wojtaszek started with the company in 2010 as general counsel and became CEO in 2016. His salary is $264,898.
Under the terms of the agreement with Wojtaszek, the CEO will leave his job on Dec. 31. In exchange for foregoing the remaining time on his contract, he will receive a full year's salary. He must also agree not to take a job or engage with any other entity in the gaming business through 2026. Other benefits due to Wojtaszek will be resolved through negotiations.
Leach started working at Batavia Downs in 1989 as a staff accountant and earns $221,582 as the chief financial officer. She will leave her position after her sick, vacation, and compensation time, if any, in early spring 2025. She will remain on-premises through Jan. 31, 2025, and will split time between home and office in February. For the remaining time on her employment contract, she will be paid half her annual salary.
White was named VP of administration in 2012. His salary is $155,168.
He will continue working through April 30. At that time, he will use up any remaining sick leave and vacation time. He will receive half of a full year's salary.
The resolution authorizing the "negotiations" authorizes Bassett to form a search committee for new executives.
Photo by Howard Owens
The resolution passed 14-1, with Tim Callan, representing Erie County, casting the lone no vote. The seats for Seneca and Wayne counties are currently vacant. Genesee County's representative, Charles Zambito, voted yes.
After the vote, Board Member Vincent W. Horrigan, of Chautauqua County, said, "This cooperation, in my short time here, has achieved incredible results and performance for the counties for the state. That doesn't just happen. It's an incredible leadership team that made that happen. And I would just like to acknowledge the leadership team. They have done absolutely incredible work. Intentions are important, but results are to be congratulated."
Immediately after the meeting, Zambito declined a comment request.
While OTB's revenue and payments to the shareholder municipalities have grown significantly over the past decade, Batavia Downs has been the target of complaints about some of its business practices in recent years.
In November 2023, Western OTB protected $86.4 million in net revenue from racing and gaming operations for the year. The 17 municipalities that own businesses were set to receive more than $10 million in distributions.
A decade and a half ago, the NYS Comptroller's Office issued a report that expressed concern that OTBs in the state, including Western OTB, were on the brink of failure. Since then, Batavia Downs has expanded gaming, added a concert series, remodeled its event space, started hosting more events, built a hotel, added two new bars, and remodeled its restaurant, with most of that business expansion coming in the past eight years.
The board came under fire for health insurance coverage members received based on a 2008 NYS Comptroller's report that seemingly contradicted previous comptroller's reports. The report, which is no longer online, reportedly said Western Regional OTB wasn't permitted to provide free health care coverage to board members, even though two prior audits, state law, and case law supported the ability of government agencies that operated as businesses, such at Western Regional OTB, could in engage in standard business practices.
It's common in corporate America to provide health care, along with other compensation, to board members.
Attorneys for Western OTB said providing health insurance was legal, but an outside council hired to review the issue recommended that the board rescind the health insurance perk, which it did in 2021.
In another Comptroller's Audit, the agency found that OTB engaged in poor record keeping for how perks, such as tickets to Bills and Sabres games, along with other events, were distributed to Batavia Downs customers, implying that some tickets went to board members and family members. Contrary to some reporting on the report, there were no allegations of graft or illegal activity related to the perks. The main issue was that Batavia Downs couldn't account for all of the tickets that were distributed. At least nine percent of the tickets distributed by Batavia Downs went to non-players. The facility has since improved its record keeping and tightened the rules around board members distributing and acting as hosts for gamers using the tickets.
The Comptroller also found that Wojtaszek did not properly record his use of a company-provided take-home vehicle. Wojtaszek admitted that he did not file the proper paperwork and reimbursed OTB OTB $3,000 to resolve the issue. At the time, the company was in the process of eliminating take-come vehicles and instead providing a vehicle allowance, which is now standard business practice in the United States.
Politicians and some reporters used the audits to misrepresent the issues raised as signs of "corruption." In May 2023, a Buffalo Democrat, Sen. Tim Kennedy, pushed through legislation to restructure the Western OTB board, establishing wasted votes based on county and city population, ending the equal distribution of board member votes among the counties and transferring control of the board to Buffalo and Rochester and Erie and Monroe counties.
The rural counties are suing the State of New York over the changes in voting structure.
"I can only say that I echo what Mr. Harrigan said," Bassett said after the meeting. "They have done a tremendous job. And they deserve, really, the time that they are going to move on and move forward with other endeavors. It's been a pleasure to work with all three of them."
