Dennis Bassett

Buffalo Mayor Byron Brown can open doors, says Western Regional Off-Track Betting Corp. Chairman Dennis Bassett.

He can open doors in Albany. He can open doors with the office of Gov. Kathy Hochul.

"The OTB is looking to have good, solid representation in Albany," Bassett said. "We feel that what better individual is there who could help us open doors that we haven't been able to open before than a five-term mayor with a legislative background?"

A unanimous board vote on Sept. 5 authorized Bassett to open contract negotiations to hire Brown as OTB's new CEO and president. Bassett said the negotiations are ongoing. Brown has yet to officially accept the job offer.

The 65-year-old Brown became Buffalo's mayor in 2006. He served in the state Senate from 2001 to 2005. He was a member of the Buffalo Common Council from 1996 to 2001. He has a dual bachelor of arts degree in political science and journalism from Buffalo State College.  He worked in sales for a year at Bristol-Myers before starting a legislative staff career. 

OTB reportedly advertised the job as paying between $280,000 and $320,000 annually. Henry Wojtaszek, the outgoing CEO and president, makes $264,898.

"The key thing that we have to do is get someone that can open doors that we don't have open," Bassett said. "We're running a pretty well-oiled machine now. I think that what I have stressed consistently as board chair is that we may have some government obligations, but we have run Batavia Downs as a business. Mayor Brown assured us that his business hat would be on at all times and that he would be able to focus on how we can generate more revenue for the 17 municipalities."

For several years, Erie County Democrats, such as Sen. Tim Kennedy, Sen. Sean Ryan, and Comptroller Kevin Hardwick, have attacked the OTB and its leadership, making unsubstantiated corruption claims. Kennedy successfully pushed legislation that changed the OTB board's voting composition, giving Democrats a weighted vote majority even though Democrats represent fewer jurisdictions on the board than Republicans. 

Genesee County is leading a legal challenge to the voting change.

Sen. George Borrello, who represents many of the rural counties that own a portion of the corporation, said last week that Brown's selection smelled of corrupt politics.

"The ‘culture of corruption’ is actually the way that Erie County and the City of Buffalo have rigged the Western Regional OTB board," Borrello said. 

Borrello praised Wojtaszek's work to increase revenue and profitability at Batavia Downs and expressed concern that the "winning team" was being replaced by political patronage jobs.

Throughout the search process, Bassett has vowed that politics would not play a part in selecting a new CEO. On Thursday, he told The Batavian that, indeed, politics was not a factor in the decision to hire Brown.

"The appointment was based upon a global search that narrowed down the best candidates based on the key focus areas that we were looking at -- C-suite experience -- government involvement, budget management, and public benefit corporation experience," Bassett said. "As a chairman of the search committee, politics never entered into our decision-making as we looked at the resumes and evaluated each of the resumes and the talent of the individuals. The press may have predicted who would be the next President and CEO but that did not influence our selection process."

So far, Republican members of the board -- who all supported the job offer to Brown -- have been mum about their decision.  Asked if he had any insight into why Republicans backed Brown for the job, Bassett said it was because of the recommendation of the search committee.

"The reason they supported (the committee's recommendation) is because we stressed very seriously and very strongly that we are going to continue our focus on running Western Regional OTB as a solid business and that the outside world may play the politics game, but as long as we, the board, stay steadfast on the fact that we are trying to deliver as positive a results as we can to small municipalities who depend on OTB a lot more than some of the big Rochesters and Buffalos and Erie counties and Monroe counties, that we want to continue to give them the kind of revenue they can use to fill some of the gaps that they have."

He said that only happens if the organization is run like a business.

"Once again, the press and the outside world may continue to have us fall into this political game, but those individuals in those small municipalities bought off on the idea that we're not going to succumb to that," he said.

Bassett said Wojtaszek and Brown have a good relationship and he's expecting a smooth transition.

Wojtaszek is scheduled to leave the job on Dec. 31.

Bassett isn't expecting any issues for current employees.

"I think the employee base is very comfortable with me, and they're very comfortable with how our board is being run, and I think we'll have no problems with the leadership team and the board and the employees working at Batavia Downs," he said.

Bassett stressed that there are issues that need to be addressed in Albany that haven't been addressed until now, issues that must be addressed if Batavia Downs and the OTB are going to increase revenue and profits for the municipalities. Brown can open those doors, he said.

Batavia Downs has achieved record-breaking revenue two years running and 2024 is shaping up to be another record year, Bassett noted.

"We know that we can't grow this business and be successful if we don't look at how we can go into different ventures, and we can't do the same things we've been doing tomorrow that we're doing today and be successful," Bassett said.

He initially declined to address the specific issues Brown would be asked to tackle. When asked about harness racing, which might be considered a loss-leader for the corporation, Bassett said Brown might address it; he said that is one area to look at, but so are branch operations.

"We're putting together a strategic framework that looks at how we should be running this business five years from now," Bassett said.

Besides harness racing and branch operations, there is also sports betting.

"We need to look at sports betting. Sports betting is very important moving forward. We, the small racinos and casinos such as ours, don't have it. We have to fight for that in Albany, and hopefully, Mayor Brown can help us do that."

Batavia Downs has also been locked out of table games. Bassett said he's a blackjack player himself and would like to see Batavia Downs be able to offer poker and blackjack to customers.

"We're not going to leave any stone unturned for us to grow this business and look at how we can be competitive in the future," he said.

The search for a new president and CEO of Western Regional OTB is well underway, with the field of global candidates getting narrowed, and the expectation Henry Wojtaszek's replacement is announced before the end of the year, Dennis Bassett told reporters on Thursday.

The discussion with reporters came at the conclusion of the OTB's monthly board meeting at Batavia Downs.

"The search is moving; it is moving along actively, and we're doing our due diligence," said Bassett, chairman of the OTB board.

"We have narrowed the field down," he added. "I'm not going to say how many we have now but we've gone through a step process with the first wave of applicants, narrowed that down, did another perusing by the committee, narrowed that down, and now we're not far away from being able to make some decisions."

Bassett said that when the field is narrowed sufficiently, the entire OTB board will be involved in the candidate interviews, and the board will make the final decision on which candidate to hire.

At its June meeting, the OTB board authorized the buyout of employment contracts for Wojtasek, CFO Jackie Leach, and VP of Operations William White. In the same resolution, the board authorized Bassett to form a CEO search committee.

On Thursday, Bassett said the committee received resumes from applicants that is global in scope, but among the criteria the committee is using to screen candidates is knowledge of the regulatory, legislative, and political landscape of New York.

"One of the key ingredients is knowledge of the New York politics, knowledge of the New York Legislature, how you can work your way through the maze, and how you can help us shed a better light on OTB," Bassett said. "Because one of the key things that I have seen is that we need to do a better job of making sure that the people in Albany know what we're doing and that they look upon WTB as a positive because no one ever asked me, 'are you guys making any money?' In the last two years, we have had record earnings. We are on track to have our third consecutive year of record earnings. No one asks me those questions. No one wants to know. No one wants to see that we're a very successful corporation."

Erie County media has repeatedly speculated on whether Buffalo Mayor Byron Brown would be a candidate for the job. Bassett suggested Brown hadn't applied but then took it back, saying he wouldn't discuss specific candidates.

"I've heard that speculation, too," Bassett said. "If Byron Brown is interested, he'll put his name in," but added that the resume process is closed now.

Asked, "Are you suggesting he has not applied for the job?"

"I'm not suggesting anything like that," Bassett said.

Asked later in the conversation if Brown had applied, Bassett said, "I'm not going to give any answer about our applicants. I'm not going to answer about who has applied for the job, whether it's Byron Brown or anyone else. It's unfair to any candidate to give a name because the candidates who have applied for the job have a job. If I give their name and they don't get the job, how do they go back to their employer and say, 'Well, I was out fishing, and I didn't catch any fish, so I'm back. I'm back, coming to work today.'"

Bassett, a Democrat who represents Monroe County, said he recognizes the need to move quickly if OTB is to have a new CEO in place before Dec. 31, Wojtasek's last day of employment. 

Part of what drives the need to move quickly is at the executive level. For some employers, a mere two-week notice isn't sufficient. An executive may need to give a 30-day notice.

"That's why I have been very keenly aware that we have to move swiftly to try and get through this search process," Bassett said. "The longer you wait, the tougher it is. You don't have good candidates hanging on the fence. We've tried to be very crisp, we've tried to be very thorough, and we've got a very metrics-driven process that we're using, and I think it's working well. The board is going to have some good candidates in front of them for the interview."

Whoever is eventually hired, Bassett suggested, will have big shoes to fill.  Wojtasek is popular with staff, with customers, and has delivered record-breaking results in recent years.

"I have a great working relationship with Henry," Bassett said. "I applaud him and will continue to sing his praises because he's been great to work with. He's been great with the employees. He's been really great with this board. So Henry's electing to leave. Henry is looking for a different challenge. And quite honestly, what better way to leave than leave on top? And I've got to give him his props."

There will be no political considerations in the search for new executive leadership of Western Regional Off-Track Betting, said Board Chairman Dennis Bassett on Friday afternoon in an interview with The Batavian.

The Batavian asked about political considerations in searching for a CEO to replace Henry Wojtaszek. We asked if there will be a background check on candidates' voter registration or if candidates would be asked to disclose if they are members of a political party.

"I can say, unequivocally, they will not," Bassett said. We are looking for people who can take Western OTB to the next level. Henry Wojtaszek is on the right side of the aisle, and I'm on the left side of the aisle. I have the utmost respect for Henry Wojtaszek and the way he ran this organization. We're looking for solid business people."

At the June board meeting, the majority of board members backed a resolution to provide severance packages to Wojtaszek, CFO Jackie Leach, and VP of Operations William White. This is essentially a buyout of contracts that will terminate their employment before the previously negotiated employment contracts expire.

Bassett became chairman of the board in October for a four-year term after the state legislature approved a bill terminating the board members at the time and giving greater voting power to the representatives from Monroe, Niagara, and Erie Counties, relegating the rural counties to minority status on the board.

There are 17 municipalities, including Genesee County, that co-own the OTB and receive revenue from the gaming operation's profits. The operation includes harness racing and video lottery terminals at Batavia Downs and remote facilities where race fans can place bets.

"There are a number of municipalities that need Batavia Downs to be successful," Bassett said. "I mean, their budgets need for us to continue to generate revenues for them so we can help them do things that they would like to do in their own municipalities. They are not interested in us playing politics. They need for us to make good business decisions. As long as I'm the board chair and I will be chair for the next three and a half years, we are going to look at the right business decisions and how we can move this organization forward. And that's not going to be politically motivated."

Bassett has selected the executive search committee, and the members represent a balance between urban and rural municipalities.

The members are Mike Horton, Steuben County; Mark Burr, Cattaraugus County; Ed Morgan, Orleans County; Elliott Winter, Niagara County; and Dennis Bassett, city of Rochester.

The committee will meet soon to establish the qualifications and experience they seek in a new CEO.

"I have been a part of several high-level searches of senior executives in my 51 years in corporate America and on boards outside Western OTB, and I think we are capable of conducting a national search in a very timely and effective manner," Bassett said.

Bassett suggested that politics played a role in buying out Wojtaszek's contract.

Wojtaszek has been singled out by political opponents in Niagara and Erie counties, most notably former State Sen. George Maziarz, who was once passed over for the CEO job. 

Several controversies have surrounded Western OTB in the past few years, including questions about health care insurance for OTB board members, the accounting of VIP tickets for sporting events in Buffalo, and Wojtaszek's use of a take-home vehicle.

The newest controversy involving Wojtaszek is the severance package he, Leach and White received.  An online news source in Buffalo published a one-sided report that apparently wasn't fact-checked, quoting Erie Democrats alleging the severance packages were illegal.

Bassett also addressed these latest allegations in his interview with The Batavian.

Reading from a statement prepared by OTB Attorney Terry Connors, Bassett made three points:

• The allegations were based on a reading of NYS Public Authority Law Section 43-A, which deals with severance packages for at-will employees of public authorities and limits the payout of any severance to three months of salary. The law, he noted, explicitly excludes entities such as Western OTB that were not created under that statute.
• Western OTB is a public benefit corporation organized under the NYS Racing, Pari-Mutuel Wagering and Breeding Law;
• So, the Public Authority Law does not apply to Western OTB and severance payouts.

"The severance pay limits only apply to employees under Chapter 43-a," Bassett said. "The same is true of Henry Wojtaszek. As such, the New York State Severance Pay Limitations Act does not apply to Mr. White Miss Leach, or to Mr. Henry Wojtaszek."

State law and prior case law, notably Civil Service Forum vs. New York City Transit Authority, a 1957 case, gives government entities in the state, such as authorities and public benefit corporations, the ability to operate as any American corporation would, offering competitive benefits, perks, and incentives to employees and board members, and to do "all things necessary or convenient to carry out its purpose." 

The court found that "unlike other agencies performing government functions, (it) is required to run the transit system like a business, in that its facilities must be operated on a self-sustaining basis. Recognized business practices should be permitted."

This is also why the health care benefits once provided to board members were not illegal.

The severance packages to Wojtaszek, Leach, and White:

• Wojtaszek 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.  
• Leach 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. She will be paid half her annual salary for the remaining time on her employment contract.
• White will continue working through April 30.   He will use up any remaining sick leave and vacation time at that time. He will receive half of a full year's salary.

Bassett said these severance packages are right in line with common business practices in corporate America.

"I would say that, in my 51 years of corporate America, this is (in line with standard business practice)," Bassett said. "What a business is trying to do is, we're talking about an individual, these individuals, who were really a part of a very successful business. And right or wrong, we are trying to move the needle forward in a positive manner. And I would be less than honest if I didn't say that, yes, politics gets in the way of that. But we are running this organization. As long as I'm on the board, we will run it as much like a business as we can. I felt, and I convinced the board, that it's important for us if we're going to face the challenges of tomorrow, we need to move forward with new leadership. We and we rewarded, or we didn't reward. Yes, we did (reward). We addressed situations of people who were very successful in helping this organization go to the next level. Over the last two years, we had record earnings."