Western Regional Off-Track Betting Corp.

Western Regional Off-Track Betting was informed on Monday that the office of NYS Comptroller Thomas Dinapoli is conducting a financial audit of the corporation, according to a statement issued to The Batavian on Wednesday.

Jennifer Freeman, communication director for the comptroller's office said that the audit will start in February.

"It will take several months to complete," Freeman said. "During an audit, we do not comment on specifics or what we are finding."

Michael DeGeorge told The Batavian on Wednesday that the OTB was told that the audit could include a review of the past three to five years of financial operations, including internal controls.

"The president and CEO (Byron Brown) made it clear that the new management team will fully cooperate with the comptroller's office throughout the process and that we welcome outside review," DeGeorge said.

There has been recent controversy regarding executive buyouts, other perks, and executive-level expenditures as a result of the transition from the leadership of Henry Wojtaszek to Brown.

Previously: 

• Erie County's WROTB board member walks the line on agency's spending
• OTB approves consultants’ plan for executive reorganization, approves jobs for two former Brown staffers
• OTB chair vows to keep politics out of new CEO search, defends legality of severance pay for executives
• OTB board votes to buy out contracts of top three executives
• Wojtaszek confirms he's leaving OTB by mutual agreement
• WROTB board seeks accountability when it comes to sporting, entertainment events in Buffalo, Rochester
• For additional coverage of OTB, click here.

During his years in Congress, former Texas representative Ron Paul, a medical doctor by trade, gained the nickname "Dr. No" for his propensity to vote against nearly every bill that came before him.

Might the Western Regional Off-Track Betting board of directors have its own "Dr. No"?

Erie County's representative, Timothy Callan, does have a Ph.D, but, in fairness, he more often than not votes yes on board motions. When he does vote no, though, he is typically the lone dissenting voice on a board that, though made up of Republicans and Democrats from large and small jurisdictions, often hues toward unanimity. 

When Callan, deputy comptroller for Erie County, votes no, the motion before him typically deals with financial expenditures.

That was the case Thursday when Callan voted against motions authorizing the OTB to hire a temporary general counsel while the board seeks a new staff attorney and voted against authorizing expenditures for advertising on Buffalo and Rochester broadcast media. He also voted against a $10,000 pay raise for the executive office manager, an apparent correction to her employment agreement. 

Callan said he is concerned about the seeming rise in payroll for executives at OTB.  He raised concerns in October when he voted against a reorganization plan that, as he sees it, created three new jobs. He's more concerned now, he said, because of current financial trends.

Last month, The Batavian reported that OTB was on track to return less revenue for 2024 to the 17 owner-municipalities than in recent years even while revenue has increased. 

"I think that we should be much more judicious about our spending," Callan told The Batavian after Thursday's board meeting.

In July, the OTB board voted to buyout the contracts of CEO Henry Wojtaszek, CFO Jackie Leach, and VP of Operations William White.

Wojtaszek earned $299,000; Leach, $244,000; and White, $160,000 (Leach's contract was amended on Thursday to extend her employment with OTB a short time to help with the ongoing transition in her department). 

Former Buffalo mayor Byron Brown replaced Wojtaszek as CEO in October at a salary of $295,000. 

In October, the OTB board reorganized the executive staff, creating a chief of staff position and a director of communications position. Steve Casey was hired as chief of staff at a salary of $190,000 and Michael DeGeorge became the director of communications at an annual salary of $130,000.

Ryan Hasenauer, former marketing director, was promoted to the new position of VP/Business Development and Danielle Fleming was named VP/Human Resources as part of the reorganization.

What the reorganization plan didn't address was the need to replace Wojtaszek in his secondary role as the agency's general counsel, a position he held before taking on the primary role of CEO.

Callan said he learned for the first time on Wednesday that Brown intended to hire a staff attorney with an anticipated salary of $160,000 to $180,000 annually, plus benefits.

"I was under the impression and led to believe that Judge (John) Owens was hired as an external vendor -- he's not an employee of the corporation, but he has been serving as legal counsel for the Corporation since May or April of 2023," Callan said. "I've interacted with him last year, when I joined the board last January, and found him to be very reasonable and competent."

Callan said he is under the impression that the retainer fee for the firm that employs Owens is being increased by $25,000, but at the same time, OTB, Callan said, is paying out "hundreds of thousands of dollars" for outside counsel on a variety of legal issues facing the agency. 

While Callan believes executive salary expenditures are up significantly, Brown told The Batavian in a separate interview on Thursday that "it's a wash from what it was previously."

"When you look at the top executive positions, there is no material difference in the spending," Brown said. "With the legal counsel, we were outsourcing a lot of that legal work previously, and my goal is to bring more of that work in-house and create a more competitive environment and how law firms are selected when we do have to outsource legal work."

Brown said he believes it is important for the corporation to have legal counsel on staff, available on a day-to-day basis.

"There are a lot of legal matters that come before the corporation all the time, and so for the corporation to operate more efficiently, for the corporation to save money on legal expenses, having an in-house counsel that is available daily, I think, will make the operation of the corporation even more efficient," Brown said.

Callan was appointed to the board as a result of legislation pushed by Democratic Sen. Timothy Kennedy, representing Erie County, making spurious claims about corruption at the agency, to fire all of the board members serving in 2023 and giving the larger jurisdictions among the 17 owner-municipalities greater weighted voting. This g was expected to shift the controlling interest of the corporation away from Republicans and to Democrats.

Wojtaszek is a Republican and often the target of attacks by Erie and Niagara county politicians. 

In relation to Callan's assertion that executive expenses are going up in the wake of Wojtaszek from the agency, The Batavian asked Callan about the apparent "unintended consequences" of "pushing out" Wojtaszek.

Callan said he was as surprised as anybody when he learned before the July board meeting that Wojtaszek was seeking a buyout of his contract.

"That was news to me," Callan said. "I've not heard anybody say Henry was pushed out. I don't know if Henry thinks he was pushed out, but everything I was told by Henry, by our chairman, and by other colleagues here is that Henry chose to leave and wanted a buyout. I wasn't told he was pushed out. So I don't know where that sentiment would come from."

Wojtaszek told The Batavian in June that his departure was by "mutual agreement."

As for advertising spending, the board approved the expenditure of up to $1,155,000 for advertising at 14 broadcast outlets in Rochester and Buffalo.

That doesn't mean OTB will spend that amount, just that marketing staff can make ad buys up to the amounts specified for each individual outlet, ranging on an individual outlet basis from $15,000 to $250,000.

Callan said he isn't convinced the corporation has a good metrics system to ensure each outlet delivers results.

He said that during the advertising committee meeting on Wednesday, he asked colleagues to cut the authorization in half, perhaps covering only six months.

"Let's, as a board, understand the analytics behind why you're paying this TV station this amount, why this TV station in Rochester is getting this amount," Callan said.

(Disclosure: Batavia Downs has been advertising with The Batavian for about a decade but never in the amounts disclosed in the resolutions approved by the board.)

Callan said he's previously raised the question in internal meetings but has never found the answers satisfactory.  He said he wants to know if an ad can be linked to betting, to meals, to track attendance, remote betting, or hotel stays.

"How do we track and know who these people are and how they came here? In other words, how do we know that a TV ad is running in Buffalo every five minutes -- it seems like -- I live in the Buffalo area -- and every five minutes on one of the TV stations I see a Batavia Downs ad," Callan said. "How do we know the effectiveness of this? How do you track people who watch Channel 2, the NBC station in Buffalo? What's the bang for the buck that -- you know, they're advertising the most, they are getting the most money in the resolution -- that's driving people to want to come here?"

Brown said Thursday's resolutions were based on an advertising budget that was passed as part of the operational plan in December. 

"I was able to share with board members that my management team and I have already reduced some of the marketing spending, but it's critically important to market Batavia Downs Gaming and Hotel to keep people coming to the property, using the property, being aware of the property, so that we can continue our success in this very competitive industry," Brown said.

As for analytics, Brown said he agrees with Callan that measuring results is important. 

"We want to analyze our spending," Brown said. "We want to be able to track the impact of our spending and make sure that we are spending money on the market and in other areas most intelligently and efficiently."

He said, in fact, there is already tracking in place.

"I think we have to do a better job of sharing that tracking and those analytics, and we will certainly do that," Brown said. "But already in the first part of this year, we've demonstrated to the board that we have reduced the amount of money we spend on marketing while still expanding our marketing reach."

First-year Western Regional Off-Track Betting CEO Byron Brown has a four-point legislative plan he's pursuing in Albany in his attempt to grow the business and generate more revenue for the 17 municipalities that own the organization.

The top priority is reducing OTB's tax rate from 49% to 44%. That five percentage point drop would increase revenue for Batavia Downs by $4.5 million.

"We propose to use that revenue to increase disbursements to the 17 member municipalities, which would certainly make 17 governments in Western New York financially stronger," Brown said. "We would also look to provide raises to our hard-working employees, and you know that would certainly go back into the economy of Western New York, and finally, our interest would be to reduce what our employees pay for their family health insurance."

The reduction would make the OTB's tax rate more equitable with Hamburg Gaming and Vernon Downs.

"This would not affect either of those operations," Brown said. "Of course, gaming is a very competitive industry. This would make us more competitive in the industry, and these revenues would go to 17 municipalities and to the employees who work here."

Brown noted that WROTB is unique in that it has 17 member-owners and distributes revenue to 17 municipalities. No other gaming operation in the state has as many stakeholders receiving revenue from the operation.

"Suffolk OTB, for example, has one municipality to which they provide resources," Brown said. "In our case, we have 17. So this has a positive financial impact on 17 different municipalities in Western New York. This is also the fifth largest employer, with roughly 420 employees, in Genesee County, and 52% of those employees are unionized employees."

Brown is also aiming at ensuring WROTB gets a piece of the action if iGaming is approved by the state, a project favored, Brown said, by the chair of the Senate Committee on Racing, Wagering, and Gaming.

iGaming means online gambling, which includes casino games, sports betting, and online poker.

There are statutes in New York that also require, besides the tax, OTBs to pay fees to the gaming commission.  Brown is seeking a reduction in those fees.

The fourth item on his legislative agenda is to extend the boundaries for WROTB's E-Z Bet machines. Right now, they can't be placed more than 40 miles away from the track. That leaves out portions of Erie County. 

These are the sort of issues board members expected Brown to tackle when they approved his employment contract.  As a former mayor and former state legislator, he has a lifetime of political connections in Albany.

But that doesn't mean winning support for these initiatives will be easy.

Annual budget planning starts in June, and Brown started his new position in October, so that's a challenge for Brown to overcome, but he's working at it, he said.

"We're a little behind where we would like to be in terms of our legislative agenda, but we have hit the ground running," Brown said. "I've been to Albany talking to state legislators and the governor's staff and others. You know, the last trip to Albany was just another step in that process. I attended the governor's State of the State speech. We requested a number of meetings with members of the Assembly and with the Governor's staff, and all of the meetings that we requested were granted. So we feel that we're being listened to, that we're being heard, and people have been very receptive to our concerns and our needs."

After The Batavian's Jan. 7 article about the opening of the winter racing season at Batavia Downs, one reader raised questions -- well-informed questions -- about just how well the winter meets are doing for the race track and casino.

On Thursday, Don Hoover, director of live racing for Western Regional Off-Track Betting, sat down with The Batavian to address the issues raised by the reader.

First, the history of the winter meet at Batavia Downs
The meet is in its third season. Before 2023, the race track in Buffalo hosted a three-month winter meet but the storms of 2022 distributed the season, causing several race-day cancelations. Buffalo decided to compress its racing schedule into a season that starts in March.

The horsemen are accustomed to year-round racing, and for many of them, their income stream depends on it, Hoover said.

"Now we're faced with the possibility of no racing in Western New York for three months," Hoover said. "That leads to the question of whether some would have to get out of the business. Would they ship to another racetrack and maybe stay there?"

The horseman's association approached management at Batavia Downs and proposed a January and February racing schedule, promising to cover any losses incurred by the track.

The horsemen promising the track wouldn't lose money on the races is a key point, Hoover stressed.

"We have a shared agreement that benefits both Batavia Downs and the local horsemen so that they can maintain their racing without much interruption and we can provide a venue for them without incurring any significant cost," Hoover said.

The agreement covers direct costs related to each race, not other ongoing operational costs, such as the salaries of permanent staff who might work during the events.

Is keeping winter racing a good business decision?
"I have personally wrestled with that question because it's not really in monetary terms, and the angst that it just brings about naturally due to the constant question of -- are you racing? Are you not racing? Are you racing? Are you not? Is it too cold? Is it a safe track? Those items are hard to wrestle with on a daily basis," Hoover said. "If we look at it as a pure business decision -- I guess, what we would have to do now since this is our third winter -- I guess what we would have to do now is sit down and get the food and beverage revenue and see if we can see a pattern. We know that we do more business on Mondays and Thursdays when we race because otherwise, the clubhouse wouldn't be open.

"The clubhouse is open. We have food specials. People come and attend the races there and eat and drink. So we would have to try to analyze exactly what we could put in dollars and cents as to what ancillary income we get derived specifically by racing in the winter."

What Hoover calls "ancillary income" doesn't count against direct racing expenses.

Even so, it can be hard to separate additional revenue on race days when Batavia Downs has other promotions going on throughout the winter, such as hotel specials, concerts, and group events, "all the things we do here as a corporation to drive people to the property." 

He does believe, he said, that racing does get extra people to the track, though attendance is much, much smaller than the regular meet.

"It's logical that we would get extra people to the property by holding racing," Hoover said. "They are people who are harness racing fans, and they wouldn't be here except for that fact."

Is there enough attendance to justify opening the clubhouse?

"It's a work in progress where we look to see how to do that without losing money,"  Hoover said. "We have one bartender. People order drinks. We've paired down what foods are available. It used to be that they could order food and it would be brought up to them. Now we just have specials for right there. So we've tried to look at all the numbers on it and come up with a specific plan where we won't lose money by having the clubhouse open."

Our reader thinks attendance would be better on another weekday than Monday, such as going to two days, perhaps Tuesday and Thursday or Wednesday and Friday.
"Well, Mondays happen to be our biggest handle day," Hoover said.

During the regular meet, the first post time is 6 p.m., giving people who work, especially in Rochester and Buffalo, time to get off work and make it to the track.

In winter, with lower attendance, it puts more of a strain on staff expense to have a later post time.  The 3 p.m. post time in the winter also eliminates going head-to-head against racing at Monticello.

"The staff doesn't have to go home and come back," Hoover said. "The staff doesn't have to accrue extraordinary overtime. It's not dark yet. We have the track crew still here. We don't have to send them home and bring them back in, so we thought the combination of all those things regarding staffing, overtime, and the time of day was beneficial for us to make that schedule for the three o'clock on Mondays and Thursdays."

Why is Monday your biggest handle day?
There is less competition on Mondays, Hoover said. That is primarily important for off-track betting.

For the live handle, there isn't much difference between Monday and Thursday.

Is it correct that the off-track handle generates about 2% in revenue for OTB and the live-track revenue is about 20%?

Yes and no, Hoover said. When you factor in BataviaBets.com, phone bets, and OTB's own branches, the off-track handle increases to about 2.6%.

What is the typical revenue for a winter race?
Hoover said it is currently about $7,500 to $8,000.  That doesn't include anything from food and beverage or what might be spent by race attendees on the casino floor.

Later on Thursday, The Batavian spoke with CEO Byron Brown, who said winter racing is important to the operation of OTB.

"Winter racing really helps to strengthen the relationship between Batavia Downs and the horsemen," Brown said. "Also, as we work to make this a premier entertainment destination in New York State, it's just another reason for people to come to Batavia Downs."

The 17 municipalities that co-own the Western Regional Off-Track Betting Corp. can expect a payout of $7.8 million in 2025, according to an operational for the new year approved by the board of directors on Thursday.

If the 2024 estimate of $7.4 million holds, that's a $400,000 increase, but it still falls far short of 2023's record of $10,255,058.

The plan projects a net gaming win of $90,495,000.

Of that, close to $45 million will be paid to state agencies by statute.

The total operating expenses for all operations will exceed $38.6 million. Batavia Downs will account for $33 million of these expenses. This is an increase of $1 million.

Net earnings (profits) from all operations are expected to exceed $8.8 million, with branches generating more than $500,000 in surcharge revenue, losing more than $1.5 million, leaving municipalities the anticipated $7.8 million payout.

Previously: Revenue is up at Batavia Downs but expenses, including wages and contract buyouts, cut into municipal profits

Branch operations continue to be a financial drain on the organization, with revenue steadily decreasing every year. 

The anticipated handle for branch operations is projected to be $38.8 million in 2025, down from the planned handle of $43.9 million in 2024. OTB will earn more than $8 million on commissions, with other revenues exceeding $1.8 million. Statutory payments will be more than $4.7 million. Operating expenses will grow by more than $100,000 to $5.6 million.

There are eight branches within WROTB, 28 EZ-Bets sites(including four expected to start in 2025), plus online and telephone wagering.

The plan calls for Batavia Downs to operate 939 gaming machines, with a win per terminal per day of $267.17 for a total net win of $90.5 million.

Food and beverage revenue is expected to exceed $5.6 million with operational earnings exceeding $1.1 million.

The Rockin' the Downs concert series will return in 2025 with eight concerts, including a promise of some bigger name acts. Projected revenue from all sales is expected to approach $1 million. Net earnings will be less than $100,000.  The plan does not project an increase in hotel and gaming revenue associated with the concerts.

Projected revenue for the hotel in 2025 is $2.9 million with a profit of $780,000.

At the track, between the summer-fall season and the winter season, there will be 71 racing dates. The anticipated handle is $968,200. 

Administrative costs is projected to exceed $8.2 million, an increase of $1 million. The increase is related to ongoing demand for new and upgraded computers and software, legal services, and retirement benefits (including one buyout), plus the increased cost in health insurance.

Health benefit plans will increase by 6.5%.

By several metrics, the business of Batavia Downs is growing.

Revenue is flowing in at a record pace. There are more customers, more bets placed, and more bookings at the hotel, but with added success comes added expense, which Western Regional Off-Track Betting Corp. board remembers and executives discussed on Wednesday during the Finance Committee meeting.

Both the casino and hotel have more employees, and with three executives taking buyouts, added expenses have severely reduced the revenue that will be shared with the 17 municipalities that co-own the WROTB.

Based on profits through October, WROTB is paying out $1,677,960 less than it did through October 2023. So far this year, net earnings available for distribution are $7,107,384, compared to $8,785,334 at this time last year.

"I was asked this question by an individual, 'Well, how does that make you feel, Jackie, that the distributions are down?,'" CFO Jackie Leach said during her report to the committee. "I said, "You know, there are reasons why they are down from 2023. One, the board approved a 4.5% wage adjustment for employees.' I've always stated that we're a customer-oriented organization, and your employees are your most valuable assets; 2023 was a banner year for the corporation. So, between the wage adjustments, we do have one leg of Henry's buyout that's included in the 2024 wages, that's the cost of doing business."

In July, the board voted 14-1 to renegotiate the contracts of CEO Henry Wojtaszek, CFO Jackie Leach, and VP of Operations William White to buy out the remaining years on their terms.

Wojtaszek, who earns $299,000, will receive a full year severance. Leach, with a salary of $222,000, and White, with a salary of $160,000, each get six months severance.  By the end of the year, Leach said she and Wojtaszek will receive their full payout, so it will accrue to 2024, for a total of $521,000. White will be paid in 2025.

As for employee expenses, in addition to the 4.5% raise for casino employees, the operation added more than 20 staff positions. Hotel employees received 50-cents an hour raises and the hotel, which is run by a management organization, also added staff.

"The hotel overall has had pretty good revenue," said Paul Bartow, representing Schuyler County. "I guess what you're saying is that we could do better. We need to produce more revenue to cover some of these expenses. If, in fact, it looks like the hotel is doing well, you're like, 'Oh, great,' but it's not doing well enough given these expenses, and these expenses, in some ways, have to be moved, I guess, checked with more revenue from the hotel."

Leach said that's correct.

"When your costs go up, then you've got to make some adjustments," she said.

Ryan Hasenauer, VP of business development, said he and his staff are working on booking more mid-week events in order to increase mid-week room bookings and Leach confirmed that management is looking at increasing room rates.

Total revenue so far this year for the hotel is $2,399,000, up from $2,306,000. Payroll increased from $761,000 to $881,000. Other expenses increased from $647,000 to $682,000.

The other expense cutting into revenue distribution, Leach said, is increased legal expenses.

"Am I concerned? No. I've always said this corporation has to keep reinventing itself because of the competition," Leach said. "We work within a very saturated, saturated market in Western New York."

By the numbers, October was a good month for Batavia Downs. The net video game win was $7,641,556, up over $500,000 from the previous October. The October distribution to municipalities was up by $1,381 ($41,532 compared to $40,151). 

In October, there were 98,676,000 credits played, up from 92,088,000 in 2023. The win per terminal increased from $253.28 to $266.27.

The casino contributed $3.7 million to the state's education fund.

Attendance at the track increased from 74,000 to 76,000.

The casino also saw an increase in food and bar sales. Total sales increased from $676,636 to $774,848. Less expenses, net sales was $526,214.

OTB branches continue to struggle. In October, revenue was down $22,000, at a total handle this October of $3,366,000.  Year-to-date revenue is $36,522,000, a decrease of $5,198,000 (There was a $1.6 million drop in revenue attributed to the closure of one branch).

Total revenue for October is $74,331,000, up $2.5 million compared to 2023.  Expenses also increased from $23,507,000 to $25,429,000.  Salaries increased $985,000, which is still $210,000 less than projected in the 2024 budget.

Besides salary, there has been, so far this year, an increase in expenses of $939,000.

Revenue help should be coming in 2025, Leach said, with new video lottery terminals added to the floor of Batavia Downs, approved by the state, and the anticipated approval of new EZBet machines for bars and restaurants in the region.

"I was assured by the Gaming Commission that the four EZBets that have been in the hopper -- some for a couple of years -- that we could include them in our 2025 plan because they will be approved by year-end, so we will see what happens there."

High construction costs and high interest rates have temporarily shelved plans to expand the Hotel at Batavia Downs.

The Western Regional Off-Track Betting Board of Directors voted on Thursday to temporarily "pause" expansion plans on the recommendation of outgoing CEO/President Henry Wojtaszek.

Wojtaszek said the executive team sought construction estimates for the proposed expansion and the estimates -- not bids -- came in at $16 million and $16.5 million, which is about $4 million more than the original cost estimate.

"Because of the high cost of the estimate to build a hotel and the high cost of borrowing, we recommended to the board that they delay their decision and come back and review (the proposal) in six months to a year," Wojtaszek.

The Hotel at Batavia Downs is currently an 84-room luxury facility that opened in 2016. It was originally constructed and operated by ADK Hospitality, a Buffalo-based company. It costs ADK $5.4 million to build the hotel. The OTB purchased the hotel in 2021 for $8 million.

Officials were looking at an expansion that would essentially double the size of the hotel, with a new wing added to the north side of the current hotel.

Byron Brown, the new CEO and president, said pausing expansion given the current construction market makes sense.

"The construction companies that reviewed this felt that costs in the construction industry are extremely high right now and that interest rates are high right now, and we should delay seeing if construction costs come back down and if interest rates go down," Brown said. "And, you know, one example of this is if you even look at reporting on the Bills new stadium project, construction expenses have ballooned by over $560 million over original estimates."

Asked about the possibility of new import tariffs, as promised by the incoming White House administration, raising the cost of construction, thus making the project even more expensive to pursue, Brown said, "That's why we made the recommendation to delay moving forward with the hotel expansion, so that we would give the board the opportunity, with the management team to look at these things and to look at the costs, and if costs come back in line, then we would be able to move forward. And if costs don't come back in line, that would be something that the board would need to consider."

The board, Wojtaszek said, will likely look at a scaled-down expansion (fewer new rooms) at its December meeting to see if it could be financially feasible. 

The board may also be asked to authorize construction BIDs to see if maybe they come in lower than the estimates, Brown said.

As he stepped into his new role as president and CEO, Bryon Brown noted that the hotel has helped contribute to revenue growth at Batavia Downs and he said he supported expansion.

"(The hotel) has led to this corporation becoming a lot more profitable," Brown told The Batavian in October. "So purchasing the hotel in the first place was a very good decision. From my perspective, just being able to evaluate this during the week that I've been here, I think expanding would be a good decision as well. But again, I don't want to try to speak for the board."

Brown said delaying expansions is a disappointment for all concerned.

"The management team and the board are all disappointed. I'm disappointed," Brown said. "You know, we did not anticipate the numbers being this high with the increase in construction costs and interest rates, but we have to make a sound business decision, and that's what we're doing by recommending that the hotel expansion be delayed at this time."

Shortly after the board of directors for the Western Regional Off-Track Betting Corp. approved Steve Casey as the first chief of staff at Batavia Downs on Thursday, his new boss, Byron Brown, reiterated that he had no involvement with Casey getting a job in marketing before Brown was named the new president and CEO of the corporation.

"I did not know he applied for a gaming license," Brown told a gaggle of reporters after Thursday's board meeting. "I did not know he was hired at Batavia Downs prior to me applying for the position.”

Casey's new position was created by an executive reorganization based on recommendations from consultants at True North. The board on Thursday approved a payment of $30,000 to True North for their consulting work.

Based on those recommendations, the board created a new executive organization with the following job titles:

• Chief Executive Officer 
• Chief Administrative Officer/Chief of Staff 
• Chief Operating Officer
• Chief Financial Officer
• Vice-President of Operations
• Vice-President of Business Development
• Vice-President of Human Resources
• Executive Office Manager
• Director of Communications
• Executive Business Administrator

The board eliminated the following job titles:

• Director of Marketing
• Director of Human Resources
• Executive Chef

In addition to Brown as CEO and Casey as Chief of Staff, Ryan Hasenaurer was promoted from marketing director to vice president of business development. Danielle 
Fleming was named VP of Human Resources. Michael J. DeGeorge, who handled communications in the office of Mayor Byron Brown, was named director of communications at a salary of $130,000.

Brown said that based on the reorganization plan, he recommended Casey and DeGeorge for their new positions, which the board approved. Erie County's representative on the board, Timothy Callan, voted against the reorganization measures.

A number of media outlets have mistakenly reported that Brown hired Casey. On Wednesday, outgoing CEO Henry Wojtaszek told The Batavian he hired Casey not long after Casey first contacted him about a job back in May, months before there was an announced plan to replace Wojtaszek. Wojtaszek told Casey he would need to get a gaming license, which he did. Casey started working in marketing at Batavia Downs before the board hired Brown to replace Wojtaszek.

In an exclusive interview with The Batavian on Thursday, Casey confirmed that series of events with some additional details.

At 58, Casey said he started thinking about his retirement and that perhaps he should try to get back into the state's retirement system. While he's never been close with Wojtaszek, he's known him cordially for years, so in May, he decided to give Wojtaszek a call.

Casey said, "I'm thinking, 'Okay, it might be time to get back in. Where would I like to do that?' I think you saw a bit of chaos in Erie County. So I'm thinking, 'Where would a good spot be to go?' I knew Henry. We weren't close, but Henry and I, over the years, crossed paths, and I know him pretty well, so I reached out to Henry. 'Hey, any openings? I'd like to get back in the pension system.'"

Getting a gaming license normally takes weeks. Casey's was approved in about a week. Casey wasn't ready to start that soon so he didn't start working at the casino until September.

One of the issues Erie County reporters have raised regarding Casey is a wire fraud conviction against his former consulting company, LSS Strategies, in 2021. That came after a five-year FBI investigation that resulted in a $69 fine. 

"That application was the most comprehensive document I've ever seen," Casey said. "I literally sat with my attorney, and together, we went through it, answering all the questions, disclosed everything we possibly could so they could then make a decision. And fortunately, they came back and said, there's nothing there.”

Casey said the Gaming Commission was "100% fully informed."

"The most important factor was Steve Casey, as an individual, I don't have a point on my driver's license. I don't have a misdemeanor. I don't have a felony. There's nothing against me as an individual,” he said.

Casey said he didn't learn that Brown was a potential candidate for the job until August or September.

"I've kept in touch with the mayor over the years since I left city government, but when I first came here, it was not based on whether the mayor would come here," Casey said. "He was still in the middle of his budget stuff in May. You're looking at April, May, June. So, my coming here solely had to do with me looking at opportunities for my pension and getting back into government."

Casey is excited, he said, to take on his new role at the OTB and is already impressed by the quality of the people he will be working with.

"I can tell you, I started at the bottom level here," Casey said. "I was seeing everybody on the floor, talking to all the employees here. They didn't know who I was. They didn't know my background. Extremely professional, incredible staff, very talented. 

I'll tell you one specific example," Casey added. "The CFO here. I've worked in Albany, in Albany for nine years and in government for 24 years. I've seen some of the best budget directors you've ever seen, from the speaker's budget director to the governor's budget director. Jackie Leach is by far one of the single most talented CFOs I've ever seen. She knows everything about this place, the institutional knowledge, and her ability to do what she does here. I mean, it's a top-notch staff, and I'm looking forward to working with such a talented staff."

Previously: Information provided by OTB leaders contradicts widely reported accounts of staff hiring at Batavia Downs

Steve Casey, former deputy mayor in Buffalo under Byron Brown, has been appointed chief of staff for Western Regional Off-Track Betting. 

The board approved creation of the position and hiring Casey as part of an executive restructuring plan. 

Casey applied for a job with OTB in May and obtained a part-time job.  He was deputy mayor under Brown, until 2015.  Brown was recently named CEO of OTB.  

Casey is receiving a one-year contract worth $190,000. 

Michael DeGeorge, also a former assistant to Brown, has been hired by the board as director of communication, at a salary of $130,000.

More TK

In an effort to fulfill his vow for “transparency,” newly hired CEO Byron Brown released copies of his employment contract with Western Regional Off-Track Betting Corporation to members of the press before committee meetings Wednesday, revealing his three-tiered salary increases, a four-month severance provision and other benefits of the job he began just a week ago at Batavia Downs.

The former Buffalo mayor’s annual six-figure base salary begins at $295,000 through 2025 and is set to jump to $305,000 on Jan. 1, 2026, and increase another $10,000 in 2027 to $315,000, “contingent upon continued growth and a satisfactory performance evaluation.” 

“Before I even signed the contract, I knew there was a lot of media interest in the contract. I had been informed that a number of members of the media had requested the contract and that the contract was FOILed. It was my understanding, through the corporation, that through FOIL, the contract would have been released on October 31, but I thought, you know, as we talk about transparency, it was important for me to release the contract today, my first board meeting,” Brown said. 

“You know, obviously, we are in something of a transition," he added. "Some of the decisions that are being discussed today, work that has been assembled today predated me, so as I transition in, I wanted to transition into the organization with transparency, and wanted to provide the contract to the media so that it could be seen and you could evaluate it."

Unlike former employees who have received year-long severance packages, Brown’s is cut off at four months, which was a condition he purposefully chose in working with Board Chairman Dennis Bassett, he said.

“We decided that I would not take that type of severance provision … Again, we thought that that was an important and meaningful reform with me coming in, and I was happy to agree with the chairman to reduce the severance that employees have previously enjoyed,” Brown said, answering why he agreed to a reduced severance length. “I want to start with transparency, want to start looking at potential reforms for the organization. Good work is being done here. This is a very profitable organization that delivers revenue to 17 municipalities in Western New York. I want to work to establish confidence in the organization. So I thought changing that provision and reducing the severance provision in the contract was important for me to do.”

The contract includes a minimum of two weeks paid vacation per year; an $800 monthly car allowance in lieu of any direct payments for expense of leasing or operation of a vehicle; and reimbursements for “necessary and reasonable business expenses incurred in the performance of his duties.”

Brown’s contract allows him to participate in employee benefit plans and programs, including but not limited to medical, retirement and life insurance, as are generally made available by the employer to employees.

The severance package also would include continued medical benefits or a $1,500 annual stipend for choosing not to use the medical benefits.  

His list of duties and responsibilities includes:

• The overall direction, development and day-to-day management of the employer — the gaming operations and hotel, food and beverage, and other gaming-related amenities; and management of vendors, consultants and employees, including the right to select, assign and terminate such individuals and entities and the implementation of personnel and wage and benefit policies established by the board;
• Preparation of annual operating and capital budgets of the employer and of required modifications to budgets, implementation, monitoring and evaluation of such budgets in the course of operations;
• Development and implementation of programs for training of employees and development of policies and procedures;
• Diligent attention to ensuring the compliance of operations with the requirement of the state Gaming Commission and other applicable laws relating to the integrity and operations of employers and maintenance of the integrity of all operations for the protection of the employers, its patrons and the public;
• Assistance in the development of strategic plans and preparation of related proformas for the expansion of the employer and of required modifications to such proformas;
• Overall direction, development and day-to-day management of the process to market, sell and account for the employer’s products and services and for developing, implementing, monitoring and adopting measures to improve customer service;
• Negotiate agreements on behalf of the employer consistent with the policies, and negotiate employment offers for management of the employer, both subject to board approval when required by employer policy;
• Lead the interaction with federal, state and local governments, including legislative bodies, and participate as the employer’s representative to the New York Gaming Association, and serve as trustee to the Employer’s Deferred Compensation Plan.

The annual salaries are listed as minimum base salaries, and will be up for review at the end of each fiscal year. The board may determine, in its sole discretion, to increase the executive’s base salary, the contract states. Brown is happy with the package, he said, which includes those "performance based incentives."

“I am certainly pleased with the contract the board has offered. We did not do a lot of negotiation, very little,” he said. “In fact, I was presented a contract for employment and found it certainly satisfactory to me and accepted it.” 

Contrary to reports in other media outlets, Byron Brown, the new president and CEO of Western Regional Off-Track Betting, says he did not hire a former mayoral office staffer at Batavia Downs.

Steve Casey, a former deputy mayor in Buffalo, does work for Batavia Downs but he was hired by Henry Wojtaszek before Brown even applied for the job, Brown told The Batavian between committee meetings at the casino on Wednesday.

Brown said he did not have details about Casey's employment and referred those questions to Wojtaszek. Wojtaszek said he would answer questions after he has a chance to brief the board of directors on the matter.

This story will be updated as information becomes available.

Byron Brown, the former five-term mayor of Buffalo is stepping into his new role as president and CEO of Western Regional Off-Track Betting/Batavia Downs. Last week, The Batavian sat down with him for an interview.

Brown said is primary focus is on running the OTB as a business, growing revenue and increasing profits for the 17 municipal owners.

"I'm not coming here to be a politician. I'm coming here to be a focused business executive," Brown said.

He didn't follow much news about Batavia Downs before learning of the search for a new executive to replace Henry Wojtaszek.  He said he has little knowledge of prior controversies. The evidence he sees so far is that Wojtaszek did a good job running the organization and he sees no signs, as some have charged, of corruption.

"Henry's been the CEO for 15 years (actually eight years as CEO and 15 years as general counsel)," Brown said. "I had never heard any negative talk about the place until last year. So, being here, seeing how the staff operates, seeing how the staff interacts with him, seeing his command of the knowledge of how this organization works, I have been impressed with him as I've gone through the orientation learning about Batavia Downs, as I look at the financials, as I look at the earnings of this organization, it is very, very profitable. Whatever the controversy might be, Henry Wojtaszek is doing something right because this place is now earning record amounts of money, more than it has ever earned, and producing that revenue to 17 municipalities."

He will leave it to the board to set OTB's legislative goals, but he is confident he can help the board achieve those goals.

"As mayor of the second largest city in the state of New York, I'm talking to state legislators all the time, not just members of the Western New York State legislative delegation, but state legislators all across the state of New York," Brown said. "Some of the state legislators I served with are still in the legislature, and I've stayed in contact with many. I've had to work very closely with Governor Kathy Hochul. Governor Hochul is a resident of the city of Buffalo, so I do have access to state legislators, I have access to the governor, and I have had open lines of communication with all of these individuals for many, many years."

Here is a full transcript of the interview:

The Batavian: If you were speaking to all of Genesee County right now, how do you introduce yourself?

Byron Brown: I introduce myself as a person who's been selected to be the president and CEO of Western Regional off-track betting Corporation. I am very pleased with this opportunity to move in a different professional direction and to extend my years of public service. I will be working in a corporate environment, but serving 17 member municipalities and trying to raise the revenue that Western Regional Off-Track betting Corporation provides to 17 member municipalities, including Genesee County,

Having served as Mayor of the City of Buffalo for over 18 years, I understand how important these revenues are in the city of Buffalo's budget, and I know that they are important to the budgets of the other 16 municipalities that receive proceeds. I will work as hard as I can, as smart as I can and as collaboratively as possible to continue building this organization and making it even more profitable. It is already profitable, but I aim to help make it even more profitable.

Q: One of the things Dennis Bassett said to me is that relative to Monroe County, Erie County, and Buffalo, the revenues for Genesee County and the other rural counties are more significant. Even though the revenue is smaller, numerically, it's much more significant budget-wise. Is that something you're aware of, and want to ensure that it is maintained?

A: It is definitely something I'm aware of. I'm aware of the revenue that goes to all of the 17 member municipalities, for all of the municipalities, including the smaller municipalities. Not only do I want to maintain the revenues that they are receiving, I want to grow the revenues that they're receiving.

Q: Any hobbies or interests? What do you do when you're not a public servant? 

A: I have been pretty much a workaholic, but I like to walk with my wife. We have great parks in the city of Buffalo, so we walk some of those parks. I have some friends I cycle with, ride a bicycle, and I enjoy that. I don't get to watch a lot of TV, but I like Westerns when I do, and my wife and I are helping to raise our six-year-old great nephew and seven-year-old great niece. I like spending time with them, including our son, who is 34 now. Something my great niece and I have started doing together is watching Star Trek at eight o'clock before her bedtime.

Q: Which series are you watching?

A: The original.

Q.: The original, great. Starting her outright.

A: Yeah, starting her outright.

Q: I've seen everything. I grew up on Star Trek.

A: So I've, yeah, I've seen every episode many, many times over.

Q: I've seen all the other series.

A: I have, too.

Q: I've watched Discovery and everything.

You kind of touched on this, but just what attracted you to this job? Well, it's kind of a two-part question. What did you know about Batavia Downs before, and then what attracted you to the job when you found out it might be available?

A: I didn't know much about Batavia Downs before applying for the job or coming here, there were a couple of people that said, hey, this position is available. You should take a look at it. I did. The major thing that jumped out to me is its revenue to the 17 member municipalities. I was very attracted by that because I knew of the revenue that came to Buffalo. I didn't really pay much attention to the revenue that might have gone elsewhere. When I really researched where the revenue goes, I felt that the function of this organization was very important in Western New York and in the state of New York, and I saw it as an ability to move into a corporate environment. This is a public benefit corporation. It's got to be run like a business. I saw it as an opportunity to utilize the management skills that I've been able to develop over the years and, most importantly, help 17 municipalities in Western New York, including the city of Buffalo and Erie County.

Q: It sounds like you have a passion for municipalities. Does that come from your background as mayor?

A: It does. I have a passion for municipalities. Before I ever ran for any office, I had the opportunity to work at senior levels in city, county and state government. Before my five terms as mayor of the city of Buffalo, I was a member of the New York State Senate. I was in the Senate for three terms. One of the committees I served on was racing, gaming and wagering. So certainly, you know, I have exposure to that committee and its functioning, and before that, I was a member of the city council for three terms in the city of Buffalo. Because of those experiences, my alma mater, Buffalo State University, recruited me to teach a course with other professors at the university in municipal governance, and so I was recruited to be a professor of practice at Buffalo State and really leaned into not only my own understanding and learning about local government and municipalities but also the importance of those governments in our state,

Q: You were mayor of one of the finest cities in the state of New York. And it is the state of New York, and this (Batavia Downs) is a much smaller footprint; some might say that's a kind of, it's not even a lateral shift. It might be seen as being a bit of a step-down. I realize it's higher pay, but there's not the same jazz, is there?

A: You know, some people have said that. I don't feel that. I think all work is important, meaningful, and valuable. There are at least 430 people that work in this organization. Their jobs and ability to support themselves and feed their families are critically important to them. The revenues -- since this organization was established in 1973 and began paying proceeds to municipality municipalities in 1974 -- it is almost $300 million that has been paid out to the 17 member municipalities in that period of time. That's significant. That means something; those dollars go to all of those communities in Western New York. I saw it as exciting to be able to come in as president and CEO and not only maintain that but find ways to grow that. So, I see it as an exciting management challenge in an organization that has an important function in the state of New York, and I am honored to have been selected to do this work, which I think is important.

Q: One of the things I've talked with Dennis Bassett about is your legislative experience. That was, I think, a major selling point for him and the board. Please talk about your legislative goals and what you think you can deliver.

A.: My legislative goals are the board's legislative goals. The board will set a legislative agenda. Gaming is something that the board is looking at; maybe expanding the Video Lottery Terminal footprint is something else that the board is looking at, and reducing the tax rate is another.

Q: Explain the tax rate.

A.: The tax rate on Western Regional Off-Track Betting proceeds, so reducing the tax rate ...

Q: That goes to the state?

A: That goes to the state. If that were reduced, the proceeds to the 17 member municipalities would be increased. Those are some things in the legislative agenda that the board has talked to me about.

As mayor of the second largest city in the state of New York, I'm talking to state legislators all the time, not just members of the Western New York State legislative delegation, but state legislators all across the state of New York. Some of the state legislators I served with are still in the legislature, and I've stayed in contact with many. I've had to work very closely with Governor Kathy Hochul. Governor Hochul is a resident of the city of Buffalo, so I do have access to state legislators, I have access to the governor, and I have had open lines of communication with all of these individuals for many, many years. I can certainly have a conversation with them about what's important to this organization and 17 municipalities.

Q: We've talked about how good the revenue has been and the profits going to the municipalities. I've watched over the last few years the ramping up of events here, concerts, and other activities that help bring people here. Are those policies and practices you plan to continue, and what additions might you start?

A: The organization has done a good job in ramping up profitability, increasing hotel stays, increasing the number of events that are here, and when people come here for events, they often find themselves on the gaming floor, or they find themselves at the racetrack. All of those things help with profitability. So I certainly will continue those things. I'll be looking at -- are there additional things that we can do to bring more people here? I see Western Regional Off-Track Betting and Batavia Downs as kind of a resort-type experience in Genesee County in Batavia, New York.

Q: Do you support expanding the hotel?

A: I have been briefed on the hotel expansion. That is ultimately a decision that the board of directors has to make. But from everything that I have been able to review, from the pro forma I've looked at, I think that expanding the hotel would increase the profitability of this organization. It looks like a winning proposition. And when you look at all of the hotels in this geographic area, the Batavia Downs Hotel is, I would say, the most well-used of all of them. The percentage of people who stay at this hotel is higher than all of the other hotels in this area. So there's tremendous demand to stay here, to come here, and that certainly makes a case for expanding the hotel.

Q: Back to concerts. Are you a music fan?

A.: Yes, I'm a music fan. I like all kinds of music. I like country music, I like rock, I like soul music, I like jazz, and I like classical music. You know, people have been talking about the concerts that do really well here, and, you know, building on that concert experience, concerts --

Q: That's honestly one of my number of concerns. I like covering concerts here and I know Henry is a big music fan, so I want to see the concerts continue.

A: I'm a music fan. They will continue. What kind of music do you like to listen to?

Q: Pretty much everything you listed. Probably, primarily country, Americana, but I like a broad range. And one thing I've got to ask -- Buffalo? Rick James?

A: Definitely a Rick James fan, 100 percent.

Q.: I have almost everything he has on vinyl. I'd love to see the Stone City Band here sometime.

A: You know, I used to be a DJ in college, so I also have a pretty significant collection of vinyl. And so I have a number of Rick James albums. 

Q: That's great. 

A: You might even see me do some DJing here.

Q.: Oh, really?

A: Yeah.

Q.: Okay, that'd be great. When you do that, I gotta come down here and get some pictures. Come down and hang out, too.

We probably already touched on this, but I'd say specifically, more than on the legislative side, just as the operation of primarily Batavia Downs, but in general, are there other ideas that you have yet that you want to pursue?

A: It's a complex operation. There are a lot of good things that are happening out here. Three restaurants that do very well. I've eaten in all of them now. The food is very good. The service is excellent. I think about that very famous commercial, 'We don't want you to just like coming here. We want you to love coming here.' The hospitality is great here. The people in almost every facet of this operation are warm, friendly, and welcoming, and I think that translates to success.

I think, you know, building on the events that take place here and businesses being able to hold retreats here, there are a lot of things that can be done to bring more people here. I know coming up, Roswell Park Comprehensive Cancer Center is going to have a major event here. I think getting more events like that from corporate organizations at the facility is something that can be done. They're currently working on that. I look forward to working on that with my new colleagues. So I'm very impressed with the hotel and the operation. They call it a luxury boutique hotel. In my capacity, I've stayed in hotels all over the country, and it's a beautiful place. It's a beautiful space. It's comfortable, and it's a really nice stay. And I think, you know, the more people see what Batavia Downs has to offer, the more they'll want to come here.

Q: Henry's controversial figure. What's your estimation of how he's run the Batavia Downs? Do you think there are issues there with him? What's your estimation?

A: I did not know a lot about Batavia Downs before I applied for the position. To me, the talk about controversy is very new. Henry's been the CEO for 15 years (actually eight years as CEO and 15 years as general counsel). I had never heard any negative talk about the place until last year. So, being here, seeing how the staff operates, seeing how the staff interacts with him, seeing his command of the knowledge of how this organization works, I have been impressed with him as I've gone through the orientation learning about Batavia Downs, as I look at the financials, as I look at the earnings of this organization, it is very, very profitable. Whatever the controversy might be, Henry Wojtaszek is doing something right because this place is now earning record amounts of money, more than it has ever earned, and producing that revenue to 17 municipalities.

My goal will be to continue that profitability and grow that profitability. I will look at all of the issues that people have talked about in terms of their concerns about the operation and will be transparent in the management of the operation, but at the end of the day, this is a gaming resort-type business. It's got many competitors, and it has to be run like a business. It has to compete like a business so that it can earn the money that the business is expected to earn. So, my focus will be on business. Sound, management and no involvement with with politics whatsoever. I think the controversy is bred by Republican-Democratic politics. I'm not coming here to be a politician. I'm coming here to be a focused business executive. And that's that will be what I do,

Q.: That overlaps with the other question I planned to ask you. There are people, even in Erie County -- I'm sure you've seen the story -- who say you're a political appointment. What's your response to that?

A: Well, no, I'm not a political appointment. No, no. Political person. Well, let me say this: I'm not a political appointment. I had to apply blind. I had to go through a number of interview processes. I had to present credentials. I had to go through a background check, and there were 17 board members that had to evaluate my credentials and make a decision unanimously to hire me. That is not a political appointment. The appointment is based on the board, and its 17 members have confidence that I can do this job. My focus is going to be on the business of Western Regional Off-Track Betting Corporation without concern for politics of any kind.

Q.: I think it's Sean Ryan, Senator Kennedy, and Kevin Hardwick, the comptroller. I don't pay that close attention to Erie County politics, but at one time or another, I know at least Kennedy and Hardwick have, and I think Sean Ryan has -- They've called this organization corrupt. Is that a characterization you agree with? Is that a fair question? If that's not a characterization you share, how would you push back?

A: You know, I would say that in particular, Senator Kennedy and I are very close now, Congressman Kennedy; we've worked very closely on many, many things over the years. I can't go back to what people are talking about. I don't know of those things. I can only go forward, since I've been here with all of the documents I've been able to read and review, and it's voluminous, the meetings that I've been able to sit in with various staff, I see a sound operation that is well run. There are some different things that I would do. I certainly will try to erase that perception from everybody's mind. But I haven't seen since I've been here any evidence of (corruption).

Q: So, again, this goes with representing the feedback I get in the community. There's long been an accusation that Batavia Downs was a Republican patronage job. When the board changed to weighted vote, one of the first speculations was that Democrats want to make this a place for a Democratic patronage job. That usually is the biggest concern, say, with middle management. Do you have plans to make changes in middle management? Will party affiliation play any role in who you hire?

A: People's party affiliation and people's last names are of no concern to me. People's performance and qualifications are what I am concerned about. So if the employees here are performing well, we certainly want to see them stay. Anybody applying to come here, if they're qualified for the positions that they're applying for, should be considered. But party affiliation, last name, who's connected to, who? I'm not going to get into that at all.

Q: Okay, so that leads to my next question. It has been reported that there's an issue with Henry's son being hired. Do you have any concerns about him being hired here at his current job, and what's your position on him maintaining employment?

A: Again, the last names of employees that are here are of no consequence to me. I'm focused on the performance of every employee, and as long as the employees here are performing their job duties as expected, then they will be welcome members of this team.

Q.: Do you think there's anything inappropriate about his son getting a job here?

A: Again, I don't know the circumstances around that. I haven't even met the young man yet. So you know, my goal is to go forward, to evaluate performance, to evaluate the effectiveness of employees, and if people are performing their jobs properly and are effective in their jobs, that's my only concern. other

Q.: Another issue that's been raised is Henry getting lifetime health insurance. Do you think that's an issue?

A.: Again, whatever his benefit package was and whatever his benefits are in retirement, those are decisions that have been made by the board of directors. As the incoming president and CEO, those are not decisions that I have the ability to make, and I would suspect if the board made those decisions, they were within their right to make them.

Q.  This is pretty much my last question. I know this has been people talking around the community, including elected leaders, concerned that with the change to weighted voting for the board and the Democrats gaining more control, the real end game is to eventually sell this to Delaware North or the Senecas. Have you heard that? Do you have any response to that? What is your position on that?

A.: I have not heard anything like that. Again. This is a very profitable operation. It is a corporation that provides proceeds to 17 member municipalities. There are plans that I have seen to increase the revenues that go to 17 member municipalities in Western New York. And I wouldn't want to see anything happen with the organization that would financially disadvantage 17 municipalities in the state of New York.

Q: (After the recording was off, Byron Brown mentioned plans for a trip to Albany, so we asked him to explain it on the record.)

A: Albany? It's the New York Gaming Association Board meeting. So we'll attend with Henry. We'll see how the board meeting works. We'll meet some of the members of the board, and then we'll try to have some other meetings in Albany while I'm there just to hit the ground running. This is my second day; it's been a lot. There are a lot of lot of meetings, a lot of briefings, lot of stuff to read, and I'm looking forward to going to Albany to the New York Gaming Association meeting

Q.: While we're recording again, is there an excitement about being here? Is it a change you're excited about?

A.: I like the place. I'm excited about it. I'm excited about what the future holds for the place. I'm excited about what I think I can do to grow revenue, to grow excitement, to grow awareness of Batavia Downs. You know, I've looked at some demographics to see where customers come from. I think, you know, a lot more people could come from Buffalo and in Erie County. So certainly, I have some ideas on how to get more people to come here and enjoy what I think is a great experience.

In a press conference in Buffalo at 5 p.m., Mayor Byron Brown confirmed that he is stepping down as mayor in order to become the president and CEO of Western Regional Off-Track Betting.

The announcement comes less than a week after the OTB board unanimously approved a contract offer for Brown that will pay him an annual salary of $295,000.

Brown will replace Henry Wojtaszek, who has overseen record revenue growth and profits for the 17 municipalities that own the OTB in recent years. His final day with the OTB is Dec. 31. 

Brown said he will retire in the coming weeks without a specific date. His start date at Batavia Downs has not been announced.  Board President Dennis Bassett said on Thursday that he expects Brown to start before the end of the year so he can learn about his new role from Wojtaszek.

Bassett praised Brown as the most qualified candidate from a pool of applicants from throughout the United States and from overseas.

"We think that we have done a thorough job to get where we are today," Bassett said on Thursday. "The success we had and what we need for tomorrow to continue our success. And I cannot say it enough that we are extremely fortunate to get an individual like Mayor Byron Brown to lead this organization after the job Henry Wojtaszek has done. I think we've just been extremely fortunate. And we look to continue to grow. We look to continue to venture into things that we have not ventured into before."

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. 

Wojtaszek's most recent annual salary is $299,000.

One of the primary expectations for Brown as he steps into the new leadership role is to open doors in Albany so that Batavia Downs can grow its business. Bassett has expressed interest in sports betting, online betting, and table games, all potential revenue sources that the state has denied Batavia Downs so far.

"Brown expressed to us that he's taken over a position now that he's managing a corporate entity, and he's looking to make sure that we run this organization in a corporate way and not in a political way," Bassett said.

At Monday's press conference, Brown did not discuss any aspects of his new job or what he hopes to accomplish.  He expressed his pride in Buffalo, the job that leadership has done together, especially during recent tough events, and expressed optimism about the city's future.

The Western Regional OTB Board of Directors on Thursday morning, by unanimous vote, approved a contract offer to Buffalo Mayor Byron Brown to become the next CEO and president of the OTB.

Brown will receive a salary of $295,000 in the first year, with the possibility of incentive bonuses. The contract will have an annual renewal clause, said Board President Dennis Bassett.

Bassett declined to release copies of the 18-page contract to the press until Brown signs it.

Brown is expected to announce his future plans next week, a spokesman for the mayor's office said.

"We have a unique situation here at Batavia Downs where we have harness racings, we have a casino, we have gaming, we have a number of different avenues in which we endeavor to make sure that we do well," Bassett said when asked to defend the size of the salary. "I'm not so sure that other areas that are in this business have as diverse and as complex an operation as we do here in Batavia Downs, so we think that for what we are asking our new president and CEO to do, that he is being paid comparable."

Henry Wojtaszek, the outgoing CEO and president, makes $264,898.

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. 

After Thursday's meeting, Bassett reiterated previous statements that Brown was hired primarily because of his extensive legislative background and productive relationship with key powerbrokers in Albany.

"We hope that Mayor Brown's influence and his knowledge of the individuals who work in that environment will help us open doors that we haven't been able to open before," Bassett said.

The OTB is interested into expanding operations into other ventures, such as sports betting and online betting.  Bassett has expressed concern that Wojtaszek, a Republican disliked, it seems, by at least some key Democrats, wouldn't be effective in lobbying on behalf of the OTB on those issues.

"The thing that is important for all thriving institutions is change," Bassett said. "Change is good, and change is inevitable, and the most important thing around change is how you manage to change, how you deal with the change. We think that we have done a thorough job to get where we are today, the success we had and what we need for tomorrow to continue our success. And I cannot say it enough that we are extremely fortunate to get an individual like Mayor Byron Brown to lead this organization after the job Henry Wojtaszek has done. I think we've just been extremely fortunate. And we look to continue to grow. We look to continue to venture into things that we have not ventured into before."

Batavia Downs is on pace for its third consecutive year of record revenue and record payouts to the 17 municipalities that are OTB's owners.

As for potential bonuses for Brown, Bassett indicated that the pending contract does not include specific language. The board will develop incentive criteria and the nature of the incentives.

Before Brown can sign the contract, the state's gaming commission must issue him a license to run a gaming operation. Wojtaszek's last day with the organization will be Dec. 31.  Bassett said he expects Brown to be able to start his new job before then and enter into a period of training by Wojtaszek.

When the board agreed over the summer to buy out Wojtaszek's contract, they also voted to buy out the contracts of CFO Jackie Leach and VP of Operations William White.

Bassett said Brown, who has spent nearly all of his professional career as a public servant, is ready to step in and run Batavia Downs like a business.  To that end, he expects whoever Brown hires to fill those vacancies to be based on business qualifications and not political affiliation.

"Brown expressed to us that he's taken over a position now that he's managing a corporate entity, and he's looking to make sure that we run this organization in a corporate way and not in a political way," Bassett said. "And that's a big 'a-ha,' because I've been on this board 14 years, and I can honestly say, as much as you (the press) may not believe me, the decisions that we've made in this room have never been political," Bassett said.

Bassett noted that for the majority of his tenure on the board, he's been a member of the minority party and only after voting rules were changed did he join the majority (weighted vote based on population). Bassett is a Democrat. Until the change in weighted voting, the large majority of the board were the Republican-run municipalities.

"I have never felt slighted. I have never felt disadvantaged. You know why? Because on this board, we make business decisions," Bassett said. "We make business decisions for 17 municipalities because they're interested in whether we are going to write them checks at the end of each month, and we continue to write them record-breaking checks each and every month, and that's what I'm most proud of."

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."

Contrary to an assertion by Dennis Bassett, chairman of the board for Western Regional OTB, Erie County officials believe a request to add an Erie County representative to the CEO search committee is timely.

On Wednesday, The Batavian received a copy of a letter sent by Erie County Executive Marc Poloncarz to Bassett asking that Timothy Callan, currently representing Erie County on the OTB board, be appointed to the board.

On Tuesday, Bassett told The Batavian he wasn't going to add Callan to the committee because he has confidence in the current committee as it is comprised, and too much progress has already been made in the process.

A spokesman for Poloncarz, Peter Anderson, claimed Erie County wasn't informed a search committee was formed until this past week.

"This request is not late," Anderson said in response to a set of email questions from The Batavian. "Dr. Callan was only informed of the hiring process at last week’s OTB meetings, and he briefed the County Executive earlier this week. The process has been opaque to many of the corporation’s directors, including Dr. Callan."

However, at OTB's June meeting, Callan was present and cast a vote opposing negotiations to buy out the contracts of CEO Henry Wojtaszek, CFO Jackie Leach, and VP of Operations William White. That resolution also authorized Bassett to form a search committee.

The Batavian recorded the motion's reading at the June meeting, which was read by Elliott Winter, Niagara County's representative on the board. The motion states, "Dennis Bassett is authorized to execute the renegotiation contracts for the corporation and to immediately assemble a search committee."

Callan's "no" vote is also recorded, confirming his presence at the meeting.

Anderson did not respond on Thursday for clarification of his response, given the contradiction in timelines.

The letter from Poloncraz touted Callan's high-level government experience as a qualification for inclusion on the committee but did not specify any private-sector business experience.

Anderson said there is no need for business experience to hire a chief executive.

"Erie County is a nearly $2 billion annual operation, which Dr. Callan has overseen both as deputy budget director and deputy comptroller," Anderson said. "Western Region OTB is not a private business and is, in fact, an NYS-regulated public entity. It is ludicrous to insinuate that a lack of private-sector business experience precludes Dr. Callan from the search process."

More than $1 billion passes through Batavia Downs annually, generating more than $86 million in revenue and leading to a profit of more than $10 million paid to municipalities.

Bassett has repeatedly promised, as board chair, to run Batavia Downs as a business, given the importance of its remaining competitive in the marketplace, so it can continue to generate profits to the benefit of its shareholders (the municipalities).

In early July, Bassett told The Batavian, "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, a Democrat representing Monroe County on the board, has a solid business background. In 2021, he retired as the director of Customer Operations at Ortho Clinical Diagnostics in Rochester. He's held various executive-level positions at Bausch and Lomb and Eastman Kodak Company.

The Batavian suggested that Poloncarz’s letter could be read to express a lack of confidence in Bassett and that he wasn't qualified to run the search committee. We asked what defect with the current committee Erie County is trying to cure with its request.

"The current committee lacks representation from the corporation’s largest member, Erie County," Anderson said. "As noted above, Western Region OTB is public, quasi-governmental entity, and Dr. Callan is a known subject matter expert in governmental management and financial procedures."

On Wednesday, Bassett said Callan will participate in the hiring process when he votes on a candidate to fill the CEO role.

Bassett has pledged not to let politics enter into the CEO hiring process, even promising not to inquire about the party affiliation of candidates. The Batavian asked Anderson if Poloncarz/Callan/Erie County was willing to make the same pledge.

Anderson did not make such an explicit pledge, and he did not respond to a follow-up email requesting a more explicit pledge.

He said in his first response, "Erie County’s objective is to find the most qualified candidate possible to lead Western Region OTB for the purposes of maximizing returns to the taxpayers of Erie County. Period."

After the June meeting, The Batavian emailed Callan to ask him why he voted against the buyout/search committee resolution, and he did not respond. So we asked Anderson why Callan voted against it.

"There continue to be outstanding legal and ethical questions regarding the golden parachutes authorized for Henry Wojtaszek and other senior Western Region OTB officials," Anderson said. "Such buyouts are not considered a best practice and, in fact, are illegal for NYS ABO-regulated entities."

Bassett, under the advice of the OTB legal council, has publicly stated that Western Regional OTB is not an NYS ABO-regulated entity. 

Anderson is apparently referring to 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.

Bassett said Western OTB is a public benefit corporation organized under the NYS Racing, Pari-Mutuel Wagering and Breeding Law and, therefore, not subject to the Authority Law. 

"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."

Anderson said the payouts are not a "best practice" in the business world. Bassett, with 51 years of corporate experience, says they are. (This reporter has received two contract buyouts as an executive with corporations during his career, and in both cases, when adjusted for inflation and relative executive positions, they were comparable to the buyouts offered to the OTB executives.)

In New York, all authorities, not just OTBs, similar to private businesses, are authorized, if not expected, to operate as businesses and follow standard business practices based on a ruling in a 1958 lawsuit, Civil Service Forum vs. New York City Transit Authority.

Authorities have the power to do all things "necessary or convenient to carry out its purposes," and "unlike other agencies performing governmental functions, (the authority) 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."

In 1976, the Office of the Comptroller issued an opinion regarding the Suffolk Regional Off-Track Betting Corporation and came to the same conclusion. 

The establishing statute for OTBs gives the board the power to "appoint officers, agents, employees ... and to fix their compensation ... and to "make contracts ... and execute all instruments necessary or convenient to accomplish its corporate purposes."

In a follow-up email, The Batavian asked Anderson to address contradictions between his statement and the evidence of standard business practices, as previously reported, but he has not responded.

The search process for a new president and CEO of Batavia Downs is too far along to add another board member to the search committee, said Western OTB Board President Dennis Bassett in response to an inquiry from The Batavian.

Erie County Executive Marc Poloncarz sent a letter to Bassett on Wednesday, which a Poloncarz spokesman shared with The Batavian, asking that Timonty C. Callan be added to the search committee.

Callan is Erie County's deputy comptroller and Erie County's representative on the OTB board. He has been kept apprised of open and closed sessions, which Bassett agreed, gave Callan every opportunity over the past few months to request inclusion on the board.

"I have worked hard to put together a search committee over several sessions and I feel comfortable that we have a solid process in place," Bassett said. "I have shared with the entire board and kept the board apprised of our progress. The board is the final decision maker of who we elect to be president and CEO."

He added, "I don't think at this late stage should change players or add more players to the search committee. I'm going to stay with the team that I have."

In his letter, Poloncarz suggested Callan should be appointed because Erie County is the largest weighted voting member of the OTB board.

Poloncarz also seems to indicate he doesn't have confidence in the current search committee.

"Filling such a critical role requires a serious regional and nationwide search to find a skilled, reform-minded individual who can lead OTB into the future as the organization competes against the rapid growth of online sports betting and the decline of the horse racing industry," Poloncarz wrote. 

He touted Callan's background in government service but did not mention any qualifying business experience.

"Dr. Callan's expertise and experience, including as the executive director of my transition team and participation on the search committee to hire the new State University of New York at Erie Community College president, make him well suited to enhancing and professionalizing your search," Poloncarz wrote. "Not including Dr. Callan in your search process not only does a disservice to all the members of OTB, but to the taxpayers of every constituent municipality."

Bassett said he wouldn't speculate on why Poloncarz would weigh in on the composition of the search committee so late in the process.

"I really want to deal with facts and want to make sure we stay steadfast, that our process has transparency, that we go through our process and put the right candidate in front of the board and then vote on who is the most qualified individual," Bassett said.

"I took great care," he added, "to select board members who would aid this process, and I thought I did a pretty good job of that. Though he wasn't on the selection list, I respect Mr. Callan's opinion, and he will, as a large voting block of the board, have a chance with the board to decide who is the next president and CEO."

In an exclusive interview with The Batavian in early July, Bassett promised that there would be no politics in the hiring process of a new CEO. The search process is focused entirely, he said, on hiring the right business person with no regard for political affiliation. 

"We are looking for people who can take Western OTB to the next level," Bassett said during that interview. "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."

Bassett, a Democrat representing Monroe County on the board, has a solid business background. In 2021, he retired as the director of Customer Operations at Ortho Clinical Diagnostics in Rochester. He's held various executive-level positions at Bausch and Lomb and Eastman Kodak Company.

"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 earlier this month.

The other committee members are Mike Horton, Steuben County; Mark Burr, Cattaraugus County; Ed Morgan, Orleans County; and Elliott Winter, Niagara County. 

While Batavia Down's revenue and returns paid to municipalities have grown substantially during Henry Wojtaszek's tenure as president and CEO, the period has also been striven with controversy, from questions about health care plans for OTB board members, the distribution of tickets to sporting events, and Wojtaszek's bookkeeping for a company-provided vehicle.  Wojtaszek has said in numerous interviews over the years that these issues have been resolved or corrected.

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

The lone no vote to terminate the employment contracts early came from Callan, which is a vote he has not explained and he did not respond to an email from The Batavian in June asking that he explain the vote.

Erie County Democrats have claimed the contract buyouts violate state law, but Bassett has previously explained that they are citing the wrong section of New York authorities law, and the buyouts under the enabling legislation for OTB make the buyouts legal as a standard business practice. 

Board President Dennis Bassett said on Wednesday that he will no longer require people attending Western Regional OTB meetings to recite the Pledge of Allegiance.

"I would like to say I erred and that I respect the First Amendment," Bassett said.

His decision to tell attendees that they needed to stand for the pledge and place their hands over their hearts or leave the meeting was something he had "no right to do."

"I'm just trying to be a good board chair and I made a mistake," Bassett said. "Not respecting the First Amendment was a mistake on my part."

The Pledge of Allegiance was written in 1892 by the socialist minister Francis Bellamy, who lived from 1855 to 1931. It was first published in The Youth's Companion later that year.

The Youth's Companion promoted the placement of flags in classrooms and placed more than 26,000 of them in classrooms near the close of the 19th Century.

The pledge wasn't included in the U.S. Flag Code until 1942.  Prior to World War II, students were encouraged to recite the pledge at school with a hand raised toward the flag.  During the war, citizens realized the salute was too similar to a Nazi salute, and the practice of placing the right hand over the heart began.

In addition to First Amendment concerns, requiring people to leave a public meeting for anything other than a closed session or disruptive behavior violates the state's Open Meetings Law.

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."

The Western Regional OTB Board of Directors passed multiple resolutions at its regular meeting on Thursday.

Highlights:

• Hire Kim Crawford at a cost of $155,661 to maintain the race track in 2024 and 2025, which includes resurfacing, rebanking, and maintaining the track at the highest possible level. The contract runs July 27 through Feb 27 (72 live race dates) and July 26, 2025 through Dec. 6, 2025 (56 live race dates).
• Contract with Quality Inn and Suites, 8250 Park Road, Batavia, to provide four units at the hotel to accommodate up to nine groomers, required under an agreement with the New York Horsemen's Association, at a cost not to exceed $40,000. Quality Inn and Suites was the only hotel in the area that responded to a request for proposal.
• Contract with the Genesee  County Sheriff's Office is to provide law enforcement officers with assistance with security at Batavia Downs from June 1 to May 31, 2025, at a cost of $150,000.
• Contract with Batavia PD to provide law enforcement officers for additional security at the concert venue on concert nights, June 10 through Aug. 31, for a cost of $35,000.
• In order to provide additional parking for customers, contract with DAB LLC to allow parking in the former Kmart parking lot at a cost of $80,000.