With no one representing the “power block” of Erie and Monroe counties and the City of Buffalo, this morning’s meeting of the Western Regional Off-Track Betting Corp. board of directors was absent of any official business.
Instead, 12 of what in time will be 17 directors received updates on the various WROTB departments and listened on as Henry Wojtaszek, corporation president and chief executive officer, and Dennis Bassett, representing the City of Rochester, discussed the situation surrounding the potential placement of a full casino in the Flower City.
The City of Buffalo, along with the counties of Monroe, Erie, Cayuga and Schuyler, have yet to appoint their board members in light of a New York State-imposed directive to disband the previous board and change the voting parameters from a one-municipality/one-vote format to a weighted system based on population.
Since most of the voting power is in the hands of Buffalo and the two large counties west and east of Genesee, the board today did not have a quorum to conduct any business.
The 12 directors in attendance are holdovers from the previous board, except for Genesee County’s representative, former County Court Judge Charles Zambito. The Genesee County Legislature, in May, appointed Zambito to replace longtime board member Richard Siebert, who resigned after learning of the structural changes.
Speaking to The Batavian after the public portion of the meeting at Batavia Downs Gaming, Zambito said he’s had his eye upon joining the board for quite a while.
“It goes back to maybe part of my background (as) my family has been involved with the horses (harness racing) for years. And I spent time as a kid here -- sitting in the kiddie stands,” Zambito, 71, said. “I think it’s an important asset that we have, not just in Genesee County, but the whole area.
“It’s always been in the back of my mind to serve on the board. When Dick Siebert decided to leave, I’d be interested in doing it.”
When it was mentioned that he was coming in at a crossroads, so to speak, Zambito said, “Yeah, it’s going to be interesting.”
“Well, I’m a little concerned about the changes that were made, I mean. Obviously, it doesn't help Genesee County in the sense of the voting power or lack of power that we have. But you know, it could work. We'll see how it goes,” he said, adding that he found it strange that nobody was there representing all of the municipalities. “It’s not a good situation if you can’t operate as a board.”
Zambito briefly commented on the prospects of legal action by the rural counties which had their voting strength diminished. County Legislature Chair Rochelle Stein has said that Zambito’s legal experience was a factor in his selection.
“I've heard that there that there may be (litigation), but as of now, I'm not part of it,” he said. “So, I don’t know exactly what’s going on. But I think that was from our legislature’s point of view. We’ll see how it goes.”
An Elba native and resident, Zambito was the county attorney for 10 years prior to becoming a judge. He also served on the Genesee County Legislature, was an assistant district attorney and has been a lawyer since 1977.
CEO PROVIDES SENECA NATION UPDATE
Wojtaszek said the state Assembly finished its business for the year on Wednesday night, and lawmakers returned home without considering a bill to extend the gaming compact with the Seneca Nation, which would have included the placement of a casino in Rochester. He bemoaned the fact that negotiations took place by the governor, Senate speaker and Assembly leader without the input of local and regional stakeholders.
“That bill was passed by the Senate, but nobody really knows what’s in it other than some tidbits, such as the Senecas would pay 9.75 (percent in taxes) the first year, and contrast that with what we pay, 49 percent (to the New York Gaming Commission),” Wojtaszek said. “And even over the next 19 years, that would be 19 percent, and contrast that with our 49 percent.”
He said that Batavia Downs joined forces with union employees from Finger Lakes and Del Lago to protest the proposal during a rally in Rochester.
“It would clearly affect our businesses; certainly, reduce the employees that we have here … and, if you think about it, would probably mean the end of Batavia Downs,” he added. “If you lose 50 percent of your jobs, we do have fixed costs here. We put together a really nice package in terms of doing the construction of a hotel. You can't really keep up with that if you're going to lose half of your staff and can't that handle the people that are coming in here.”
Wojtaszek said if and when this issue resurfaces, he hopes that for more transparency in the process – calling for public hearings and an economic analysis, among other things. The current compact with Seneca Nation expires at the end of this year.
He also found it “incredible” that the state Senate voted overwhelmingly in favor of the bill (59-4) without knowing all of the details.
“Now, the City of Rochester and the County of Monroe have weighed in – and maybe there are some places in the county – and it certainly seems as though the city is not interested in having it sited … They didn’t see the benefit from it,” he said.
Bassett emphasized the importance of supplying Monroe County and Rochester leaders with accurate data to take the emotional angle out of the picture.
“We have to be really prepared to provide the data,” he said. “I know that Rochester is pushing back because of all the … the elevated amount of crime in Rochester. The last thing we need is a gathering place such as this (but) I’ve got to believe this is years off, it is going to happen at all.
“But I think the leadership in Monroe County and Rochester is more irritated because you're going to do something in my backyard, and you don't tell me that you're coming. That is really the rub. At least, show me the courtesy to say he would like to do this in your home. And what do you think about it? What do your people think about it?
“And having not done that, that brings an emotional issue to it. And I think it's important for us to follow that emotional rub with what the true downside is from a data perspective.”
Along those lines, Wojtaszek said a consulting firm concluded that gaming in upstate New York is “clearly at the point of either saturation or oversaturation.”
A casino in Rochester would have to generate $800 million in “net win” to provide the same amount of money given to the state by Batavia Downs, Del Lago and Finger Lakes, he said.
“We combined for about $350 million to $400 million in net win, and we pay the state about $150 million. In order for them to pay $150 million, they gotta generate $750 to $800 million in net win. Think about that, because they’re only paying 20 percent; we’re paying 49. It's a staggering amount of money. Where are they going to get that from when they're already oversaturated?”
Previously: Assembly puts plan to build casino in Rochester on hold
