Western Regional Off-Track Betting Corp.

Two weeks after Gov. Kathy Hochul announced significant changes to the structure of the Western Regional Off-Track Betting Corp. board of directors and to the way voting is conducted by the board, The Batavian sat down with Henry Wojtaszek, WROTB president and chief executive officer, on Tuesday afternoon at his office at Batavia Downs Gaming.

On the evening of May 2, as part of the state budget negotiations, Hochul, Assembly Speaker Carl E. Heastie and Senate Majority Leader Andrea Stewart-Cousins announced approval of a bill calling for the immediate dismantling of the current WROTB board and a move to weighted voting based on population.

It was no longer business as usual for the public benefit corporation as the previous system of one vote for one municipality was struck down. Control of the board now has shifted to the Democrat Party-heavy population centers – Erie and Monroe counties and the cities of Buffalo and Rochester.

WROTB distributes a portion of earnings and surcharges to its 17 member municipalities – 15 counties, including Genesee, and the two major cities. Most of the rural counties lean Republican.

Following is the interview with Wojtaszek, who has been with the corporation for 13 years, the last six as the president/CEO:

Q. With all of the recent changes coming from Albany, what do you see going forward?
A. I would hope that as we see the board members being appointed from the various municipalities that we continue to receive very good board members … and that I would hope that common sense would prevail. The results here have been fantastic – and that’s what ultimately matters relative to a company.

We have excellent workers here who perform at an extremely high level, the guests consistently rate their experience here as excellent; they really enjoy coming here, and they enjoy the experience that they have here. I would hope that the people who have worked here over the last many, many years – those who make up a great team – are allowed to continue to do their jobs and provide that kind of customer service.

I feel pretty confident and everyone's ability here. I have not seen any drop-off in terms of attendance … in the last couple of weeks or months. In fact, it’s only gotten busier. We’re definitely at a higher pace, and we’re going to beat last year’s record pace. It’s going to be $83 million this year (in net win). That’s money that’s split between the local municipalities and the state. We have 370 people with good jobs here, and we return a huge amount of money back to the municipalities.

Q. Do you think the jobs of rank-and-file employees will be affected? Will it come down to that?
A. There’s a union here that provides a measure of protection for a lot of the workers that work here. Again, I think that performance really should matter a lot. And whatever direction this company goes, they're going to reward those people who have performed at a high level here. So, I’m optimistic that we're going to be able to continue to provide that great service and great, great entertainment value with most of the personnel still on site here.

Q. Have you had any contact from Buffalo Senator Tim Kennedy (who sponsored the bill to restructure the board) or his office, from anybody in Erie or Monroe County, Buffalo, or from Albany regarding what the future may hold?
A. Nothing.

Q. So, you have no idea right now who will be coming in as directors? (Note: Longtime Genesee County director Richard Siebert resigned his position upon hearing of these changes, and the local Republican Party is in the process of appointing a replacement).
A. That’s correct.

Q. Do you think that the management team will continue?
A. We’ll know when the board takes their seats, which I expect will happen in June. I think it’d be difficult to have a meeting in May (the board was scheduled to meet on May 24-25), knowing that they have to be appointed and some people have to be licensed.

Q. Many Republican politicians have come out and called the move to change the voting method a “power grab.” Would you agree to their assessment?
A. I do. I think for political purposes, I would term it as a political power grab. I can certainly say that it isn’t due to the performance of the corporation or the corporation performing up to par because it continues to break records in terms of the revenue it’s generating and the amount of distribution monies that it's generating to return to the communities. That's what we are charged to do -- prevent illegal bookmaking, create jobs and to return resources back to the member municipalities, and we've done all three of them at a very high level.

Q. Do you think that the things the New York State Comptroller’s Office brought up – mishandling of sporting event tickets, health insurance for board members, legal issues, etc. – prompted people to believe that more should have been distributed to municipalities?
A. We addressed them four years ago. These issues came up four years ago, and we've obviously put in place better safeguards to make sure that we perform at a high level here. We asked for the help from the Comptroller; we asked for his advice. He gave us advice; we took his advice. It was over four years ago.

We continue to be the most regulated industry in New York State, besides maybe the nuclear energy industry. And that's okay. We’re good with that. We have to apply to the (NYS) Gaming Commission for most of the programs that we run here, including the ticket program. Every year, we get renewed by them. We have a very good relationship with the Gaming Commission. We abide by their rules, and we follow their recommendations. And we will continue to do that.

We just had an audit done by our outside auditing firm, The Bonadio Group. Everything came back completely in order; there are no irregularities. We feel very good about that. The board has always felt very good about that. We know that there are no issues within the corporation. And we feel very confident that a new board coming on is going to find the same thing. We hope that they take the time to look at what's going on here and not take some of the reports that are out there in the media as gospel, and they take the time to review what's actually going on here before they make any decisions.

Q. What do you think of WNY politicians questioning the cost of WROTB’s purchase of The Hotel at Batavia Downs.
A. Actually, the hotel has been an excellent purchase for us. It’s really worked out well. It has allowed us to become a destination -- to provide a complete experience for people who want to come here and enjoy the gaming floor, enjoy the horse racing, enjoy the concerts, have a great meal, and stay on site. We think we got it for a reasonable price. We think we'll be able to utilize it now as a marketing tool to bring people here.

Q. The board has been considering adding more rooms to the hotel. With these recent changes, is any talk of expansion now on hold?
A. What we’ve done was take a look at expansion to see whether or not it was something that was worthwhile. We never made a decision to expend any money. We were just looking at it to try to get some preliminary numbers.

Q. Didn’t the board vote to fund a feasibility study?
A. The request was (to spend) between $50,000 and $100,000 to do a market study and do a feasibility study, but it wasn’t authorized. I guess the next board would take a look at it.

Q. In light of what has happened and some of these issues, do you have any regrets?
A. I have a lot of fond memories here. We have some great workers here. I love interacting with the public that comes here, and I like to see that they enjoy themselves. Do I wish we would have handled things a little differently? There are a couple of things I wish we'd handled differently. I wish we would have been a little more open as to who utilized the tickets. I think at one point, we refused to turn that over for FOIA (Freedom of Information Act) requests. And I know, looking back, we should have done that a little early. We probably should have revamped our ticket policies a little bit earlier. Again, all those things were done over four years ago.

Q. Have some of your guests approached you and commented to you about the recent developments?
Well, we have a lot of people that are very supportive of us here. A lot of our, our patrons, our guests that come here, are very supportive of our team that we've put together here. So yeah, I've heard a lot of support. We have had letters and a lot of comments and support in the last couple of weeks.

Q. Genesee County now will get two out of a total of 100 votes under the weighted system, while Erie and Monroe counties, Buffalo and Rochester will combine for 62 votes. And they’re predominately Democrat. Your thoughts?
A. I think things will be different. But again, I hope that common sense and good business sense prevail. And they allow the people here to do their jobs and to continue to do them.

Q. Do you think this was done to get you out? Do you feel that you’re in limbo at this point?
A. Like I said, no one has talked to me. We just do our job every day. We continue to increase the revenue here. We continue to provide a great product for those people who are coming here and try to have a great experience and, and then the end of the day, we'll return the monies back to the municipalities like we're tasked with.

Q. Have you thought about what you would do if the new board decided to replace you? I know you’re an attorney. Has the thought about practicing law gone through your mind?
A. We’ll cross that bridge when the time comes. I love this job. I enjoy the people that I work with to a great extent, and I'm very proud of what they've done -- what we've all done here at Batavia Downs to build such a great business.

Q. One last thing. They’ve used the word corruption to describe the actions of the board and management relating to the issues that we’ve talked about. (“This is a big victory for the people of Western New York. We are rooting out corruption, and we are removing a board that demonstrated a blatant disregard for the public good,” Kennedy said.) That’s a very strong word that speaks about people’s character and reputation. How do you react to that?
A. We know that anybody who's been here asking questions or asking for documents, we've provided complete transparency relative to what goes on here, and we will continue to do that. We’re a public benefit corporation. We understand that we do have to provide that kind of information when people are looking for it, and we'll do it. And we will continue to provide an inside look at what goes on here.”

Previously: State budget provision drastically changes structure, voting format of WROTB board of directors

Previously: County legislature chair on WROTB changes: 'Completely unfair, totally unnecessary'

The Genesee County Republican Committee on Thursday night is scheduled to interview two candidates interested in filling the vacancy on the Western Regional Off-Track Betting Corp. board of directors.

Committee Chair Richard Siebert, who stepped down from the WROTB director position after learning of significant structural and voting changes to the board, said he and the seven other committee members have set up a meeting for 6:30 p.m. tomorrow at the Old County Courthouse.

“There are two people that reached out to me that are interested in being the next OTB director,” Siebert said this morning. “The process will be that the Republican Committee will meet tomorrow night and interview the two people who asked for our endorsement.”

Siebert said the candidates are former County Judge Charles Zambito of Elba and Batavian Fred Gundell, who serves as a county election inspector.

“Our purpose is to interview them and then, hopefully, pass a recommendation to our county legislature, which would then also interview them and do the appointment. It should take place very soon,” Siebert added.

See also: WROTB President seeks to put issues in rearview mirror, praises employees for achieving record revenues  

Siebert served as Genesee County’s representative on the WROTB for 29 years. In a May 3 story on The Batavian, Siebert blasted the action by New York State leaders, calling the move, “a blatant effort to take over the jobs that we have at Batavia Downs that are appointed by their merit and not by political affiliation.”

Speaking today, he said that he heard that three other directors also resigned – Paul Lattimore Jr. (Cayuga County), Thomas Wamp (Livingston County) and Richard Ricci (Seneca County) – but speculated that others would be reappointed by their legislatures.

The Batavian confirmed that Susan May has been reappointed by the Wyoming County Board of Supervisors and that Edward Morgan is expected to be reappointed next Tuesday by the Orleans County Board of Supervisors.

Genesee County Legislature Chair Rochelle Stein said that the local governing body is anticipating the Republican Party Committee’s recommendation.

“This is a time when all the counties are all getting reorganized,” she said. “Some have already placed the person back on the board of directors, and others have yet to do it.”

Asked if there has been any talk of a legal challenge to the changes, Stein said, “Not yet.”

“Here’s the problem at this point. There has been no harm caused to the county because nothing has really changed yet. So, until there's been a change that harms us, we are unsure that we have any standing.”

The previous framework of the board was set up by a “Home Rule” law about 50 years ago – giving each municipality that benefits from WROTB one vote.

Press Release:

Assemblyman Steve Hawley (R, C - Batavia) slammed the Majority’s budget proposal that included a limit on the voting power of rural and suburban communities in Western New York. Since its inception, the 15 Counties, and the Cities of Buffalo and Rochester, have had equal votes on the Board of Directors of the Western Regional Off-the-Track Corporation. The budget bill, which passed the Assembly yesterday, diminishes the equal footing of all board members in the region by placing greater voting power on the counties home to cities compared to rural counties. Hawley is frustrated that rural and suburban New York has once again had their power diminished.

“It’s interesting how we, in Western New York, lament the influence of New York City on the rest of the state yet are called ‘conspiratorial’ for comparing the situation to ‘Big Brother,’” Hawley said. “Yet yesterday, that Big Brother philosophy made its way into our state budget, and the impact will be immediately felt as more populated areas may significantly overpower our rural suburban communities. It upends what was once a fair and equal process.”

Photo: File photo by Howard Owens.

Press release:

Congresswoman Claudia Tenney (NY-24) today released the following statement on the passage of New York State Senate Bill 7855. 

This bill, which was passed as part of the New York State budget, changes the structure of Western Regional Off-Track Betting (OTB). The change will effectively diminish the role and input of rural Western New York counties.

Local leaders from across Western New York joined Tenney in condemning the highly politicized backroom deal, which upends decades of precedent to reduce the input of rural communities and hand disproportionate power to Democrat-leaning cities. The decision was made without any input or consultation from regional stakeholders. 

“Negotiated and agreed upon in the dead of night without any input outside of Erie County and the City of Buffalo, the termination of every appointed commissioner of the Western Regional Off Track Betting Corporation is an attack on rural New York counties,” said Congresswoman Tenney. “For half a century, the Western Regional OTB has operated under shared control between 15 county governments and the cities of Rochester and Buffalo, promoting economic growth, jobs, and tax revenue across Western New York. With the passage of New York’s Big Ugly Budget, the Western Regional OTB has been politicized, and the role of rural counties has been greatly diminished, with far more power now set to go to the cities. Now more than ever, when crime rates are skyrocketing, taxes are soaring, and people are fleeing the state at unprecedented rates, Governor Hochul should be focused on correcting these problems, not destroying the Western Regional OTB.”  

"The Western Regional OTB language snuck into the state budget is Albany's latest attack on rural communities. Governor Hochul and Albany Democrats have conspired to eliminate the longstanding arrangement that allowed 15 counties and the cities of Rochester and Buffalo to have balanced representation on the OTB board. The voice of rural counties is being smothered out simply because they are represented by Republicans. This is nothing more than a partisan power grab disguised as reform," said New York State Senate Republican Leader Rob Ortt.

“With the proposed legislation, including changes to the language in New York State’s Budget agreement regarding the Western Regional Off-Track Betting Corporation, will limit the number of representation Cayuga County has and negatively impact our county. This new plan will immediately remove the current OTB Directors and create a new board, giving more power to larger municipal governments in the public benefit corporation’s service area and taking away the voices of both smaller and rural counties. Ultimately, I strongly oppose any changes to this new agreement as it will create an unfair representation and take economic benefits away from Cayuga County and its surrounding counties,” said David Gould, Cayuga County Legislature Chair.

The proposed legislation to change the membership of the Board of Directors of the Western Regional Off-Track Betting Corporation will negatively alter the balanced representation formula previously provided by the State Legislature and the Governor. This agreement has proven to be fair and impartial by affording each municipality that comprises the Corporation an equitable voice in all Board matters. I strongly oppose any changes to this agreement as it will cause undue harm to Livingston County and its governance and economic interests in the Corporation,” said David LeFeber, Livingston County Board of Supervisors Chair.

 ​​“This is just one more example of Governor Hochul and a downstate, socialist-dominated Legislature usurping the home rule of upstate counties, ignoring 50 years of shared governance by 17 partner counties of OTB in favor of a blatant, and we believe illegal, power grab. The fact they did so under the cover of darkness with not so much as a conversation with the counties impacted is the height of arrogance and abuse of power. We will talk with our partner counties and decide on what steps to take next,” said Niagara County Legislator Majority Leader Randy Bradt.

"This proposed legislation being rammed through would cut the representation of Oswego County down. Diluting the voices of rural counties would only serve to shift the economic benefits away from Oswego and concentrate power to larger counties. Oswego County stands firmly against this,” said James Weatherup, Chair of the Oswego County Legislature. 

“Genesee County, the host county of Western New York Off Track Betting, calls on Governor and State elected officials to halt the assault on rural counties who own, provide guidance and leadership to the most successful OTB operation in NYS. Senate leaders are pushing to restructure the board of director's voting power to two-thirds of the urban counties of Erie and Monroe and the cities of Buffalo and Rochester. Through S7855A resetting the rural counties to 37 percent of weighted voting, from 1 entity/ 1 vote structure since inception of WOTB, 50 years ago. The successful leadership of WOTB is due to consistent leadership by rural counties that provided seed funds to operate and own WOTB. Our rural county leadership has experience in managing municipalities, providing value to owners of WOTB and especially safeguarding investments made by our taxpayers of Genesee County,” said Shelley Stein, Genesee County Legislature Chair.

Once again, Albany is okay with large counties taking away the representation of smaller and rural counties in a power grab ... this time, it is the board of directors of Western Regional Off-Track Betting/Batavia Downs Gaming that is the target. Currently, each member county gets equal representation, but not in the new plan, weighted voting will give control to the large counties, especially Erie County. Governor Hochul should line-item veto this legislation that hurts small counties like Orleans. Fifty years ago, by the Home Rule vote, OTB was created, and representation balanced and fair. This attempted change is wrong,” said Lynne Johnson, Orleans County Legislature Chair.

“To take a fair voting system that has worked for over 50 years and turn it into an unfair politicized system is no more than three people in a backroom politics. Its sole purpose is to take our voices away, and it will do just that. If it’s not broken, don’t fix it. I urge my colleagues to vote no,” said Chairman Michael Enslow, Seneca County Board of Supervisors.

“Wayne County needs equal representation in regard to the OTB setup. There are a lot of people that come from Wayne County that come to participate at the OTB, and we need a voice in what goes on there,” said Phil Eygnor, Wayne County Board of Supervisors Chair.  

Batavian Dick Siebert, longtime director of Western Regional Off-Track Betting Corp., said today that he is stepping down as Genesee County's representative on the public benefit corporation's board.

Speaking on WBTA Radio, Siebert issued the following statement:

"I've been told that when the governor signs the budget today, I will be fired by people other than people who appointed me -- the county legislature 29 years ago. Quite frankly, I thought I would be fired or terminated by the board that appointed me but I'm hearing that I will be terminated. All 17 of us will be terminated and there will be new appointments to be made for directors representing Batavia Downs.

"I've never been fired a day in my life for any job I've ever done. So, rather than being fired by someone that I don't even work for, I've chosen, after 29 years, to notify my chairman and OTB Chairman Bianchi that I am resigning as of today. And so, it ends my career of 29 years of Batavia Downs.

"... and I point I would also make is that this isn't about the distribution of money. This is about distribution and who appoints jobs. We have five department heads; we have 14 department heads, and we have several people that are not union. So, this is a question of who makes the appointments. It's been the board that we have now.

"It will strictly be by weighted vote, and it'd be by the Democrats in Erie and Monroe County and cities that control all the vote. It's a blatant effort to take over the jobs that we have at Batavia Downs that are appointed by their merit and not by political affiliation.

"I'm worried about all of our employees that happen to be Republicans up there right now, quite frankly."

Genesee County Legislature Chair Rochelle Stein expressed “shock and surprise” today over the circumstances surrounding the profound changes made to the structure and voting parameters of the Western Regional Off-Track Betting Corp.’s board of directors.

On Tuesday night, it was announced that language in the just-adopted state budget includes a bill to dismantle the current 17-member board and revoke the one-person, one-vote arrangement that has been in effect for 50 years.

“I was not of the understanding, quite frankly, that this was going to be part of the budget,” Stein said by telephone. “That to me was a shock and a surprise. It is surprising the policy is so wrapped up in a financial document.”

Stein segmented her thoughts into specific areas affected by the legislation, namely the removal of the 17 current directors, the appointment process, the weighted voting format, the county legislature having to appoint or reappoint the director and the host agreement status of Genesee County, the Town of Batavia and the City of Batavia.

DISMISSAL OF CURRENT BOARD?
“What is even more surprising is that it calls for the immediate removal of the 17 current directors, and the counties will be faced with reappointing or appointing a new director,” she said. “Directors, for counties without executives, would be chosen by boards of supervisors or county legislators.”

Richard Siebert has been Genesee County’s director on the WROTB board for nearly 30 years.

Although the process of selecting a director for Genesee County wouldn’t change, it would have to start from scratch as a result of the new provision.

“When we get the bill back, the bill itself, we will work with our county attorney to ensure that when actions must be taken, we will have to comply with the law,” she noted. “That’s number two.”

The third point she addressed is what she called “the incredible change to a weighted voting (system).”

“If my math is correct, 62 percent of the vote will be held by Monroe and Erie counties and the cities of Rochester and Buffalo,” she said. “What means to me is that an organization that is returning funds back to its owner municipalities – and is proven to be highly successful – … will see a reduction in the influence and the leadership and guidance that has proven valuable for this organization to grow …”

Stein said that the county has reaped exponential returns from the initial $23,000 investment it made in 1974 to buy into the public benefit corporation.

“I know that this county has been well benefited by those returns,” she said. “And we in Genesee County are more impacted because we currently have host agreements with the Downs as we provide to the entity fire, public safety, highway services. Since OTB is a non-taxpaying entity for property taxes. So, these three communities -- the county, town and city -- receive a host benefit.”

A POLITICAL POWER GRAB?
Stein, echoing several Republican state representatives, called the bill “a power grab.”

“It’s so political, and it has been so toxic because of certain individuals,” she said. “The rest of us still have to maintain a decorum where we can get business done at the Downs and at OTB because record profits have been shared out to counties.”

She noted that revenue is shared through a “home rule” statute that was passed many years ago by the state legislature and approved by the governor. 

“All that could change, but I hope it doesn’t,” she added.

The legislature chair also said she was disappointed that the county’s representatives in Albany were unable to read the bill beforehand.

“George Borrello and Steve Hawley were not able to read that bill until after it was passed. So again, the three people in a room (actually two men and Gov. Kathy Hochul) have not served us well at all here in New York State,” she said.

Stein also spoke about the state Comptroller’s audit that found deficiencies in certain areas that triggered State Sen. Tim Kennedy’s push for board restructuring.

“OTB is just like any other public entity,” she said. “They’re audited. There are deficiencies found. The organization has an opportunity to address the deficiencies and to improve or change aberrations.

“That's exactly the same behavior pattern that we have in our local governments that the OTB just underwent, and they certainly have taken those deficiencies, and they've corrected them. They took those words and made themselves stronger, better and more resilient.”

SEN. KENNEDY’S STATEMENT
The Batavian sought comment from Kennedy today, but his media manager said he was unavailable today.

She did email a statement from him, however:

“We talk a lot in the state legislature about prioritizing accountability and transparency - about rooting out corruption. Last night, we created an opportunity to deliver on that. From audits to investigations, the Western Regional OTB has been plagued with a pattern of mismanagement and misconduct for years, and a slap on the wrist isn't going to fix this behavior long-term.

“By including a reform I've sponsored to restructure the OTB's board in this year's budget, we're introducing an opportunity for fair representation that serves the public good. This is a common-sense, good government policy, and it's a reflection of the real, meaningful work we continue to advance on behalf of Western New Yorkers.”

Stein took exception to the use of the word “corruption.”

“That's a really strong word. The value that we have in our rural county representatives is that actually most of them know how to run a business. So, they have been sharing their expertise and guidance for years, which has proven beneficial to the off-track betting, to Batavia Downs, to the plans to grow the opportunities here in Genesee County.”

RETALIATION IN PLAY?
She also said the bill reinforces the perception that “only New York City matters to the powers-that-be in Albany.”

“For the state only to look at Western New York when there are four others (OTBs) really makes this smack of retaliation, it makes it smack of It makes it smacks of a power play. For an organization that is returning funds back to its member counties, it is throwing away years of guidance and leadership and business development at OTB and the Downs.”

Stein concluded by recalling something that Siebert said to her about the merging of Batavia Downs and WROTB.

“One thing that Mr. Siebert told me a long time ago was when the racetrack was approached by OTB to join together, they were very concerned about where their representation might go,” she said. “Well, today's the day it happened. And I can't respect the process that this went through. In my view, it is completely unfair and totally unnecessary.”

Tuesday’s passage of the New York State budget includes a provision that means it’s no longer business as usual for the Western Regional Off-Track Betting Corp.’s governing body.

Effective immediately, the new legislation – spearheaded by Democratic State Sen. Tim Kennedy of Buffalo – dismisses all 17 directors on the board and revamps the voting format to give more influence to municipalities with the most population.

It used to be that each of the 15 counties, along with the cities of Buffalo and Rochester, would have one vote; the bill’s new language calls for a weighted system ranging from 24 votes (Erie County) down to one vote (Wyoming, Orleans, Seneca and Schuyler counties).

Genesee, which has been represented by Richard Siebert for more than 29 years, now will get two votes.

While Kennedy reportedly is calling the measure “a big victory for the people of New York,” the WROTB board chair and local Republican are speaking out against it.

“We’re disappointed by the language included in the state budget,” said Board Chair Richard Bianchi in a statement issued last night. “It was negotiated in secret with no open discussion, debate, or input from our member counties. In the short term, we will remain focused on fulfilling the responsibilities to our partners in local government as we look to evaluate potential next steps.” 

In his statement, Bianchi pointed to the record revenues achieved by the Batavia-based public benefit company that owns/operates Batavia Downs Gaming, harness horse racing track and The Hotel at Batavia Downs.

“Many in the hospitality industry never recovered from the COVID era. We not only grew but set new records for revenue, leading to the largest distribution of profits ever to member counties and cities,” he said. “That leadership came from the Board of Directors. We are proud we of the direction and leadership we provided during those historically difficult times.” 

Bianchi pointed out that, in 2022, revenue from net wins increased by 14.5 percent – to $76 million.

“As a result, revenues distributed to member municipalities were at an all-time high. Additionally, Batavia Downs Gaming contributed $37.25 million to State Education via the New York State Lottery. This number was also a record, surpassing 2021’s number by $4.7 million,” he concluded.

The impetus to restructure the WROTB board came from a New York State Comptroller’s audit that found fault with the corporation’s use of tickets to sporting events (notably, Buffalo Bills and Buffalo Sabres) and concerts, and for President/CEO Henry Wojtaszek’s use of a company vehicle.

Wojtaszek, contacted this morning, said he did not wish to comment on the just-passed legislation.

The Batavian this morning reached out to Genesee County Legislature Chair Rochelle Stein and Republican Assemblyman Steven Hawley for comment. The legislature is responsible for making the director appointed to the WROTB board.

Hawley, along with Republican Congresswoman Claudia Tenney and Republican Sen. George Borrello, criticized Kennedy’s proposal last week. They all maintain that the change is politically motivated and "a power grab trying to diminish the influence of smaller, less populated counties."

Local New York State politicians are speaking out against a report that Democratic legislators and Gov. Kathy Hochul are considering changes to the structure of the board of directors of Western Regional Off-Track Betting Corp.

Congresswoman Claudia Tenney, Sen. George Borrello and Assemblyman Stephen Hawley, all Republicans, issued statements Thursday and today, indicating their opposition to what they believe is a proposal to eliminate individual counties’ authority to select WROTB directors.

Press release from Tenney:

“For 50 years, Western Regional Off Track Betting has shared operational control between 15 county governments and the Cities of Rochester and Buffalo. Under this established system, Western Regional OTB has brought jobs, tax revenue, and entertainment to Western New York. Over the past two years, Western OTB returned over $13.9 million to offset local county taxes across Western New York,

“County leaders throughout New York’s 24^th district have reached out concerned about efforts to dismantle, politicize, and disadvantage rural communities within Western Regional OTB. When ‘Home Rule’ created the ownership of Western Regional OTB, member counties were given equal representation. NYS Senate Bill 7855 would strip rural counties of their 50-year established authority of this public-private sector partnership in favor of Governor Hochul and left-wing legislators in Albany.

“I stand with local leaders across the district in calling on Kathy Hochul to drop this misguided plan. It should be dead on arrival during budget negotiations in the Albany sewer. With a budget that is nearly four weeks late, a crime surge, and historic mass outmigration, Albany Democrats should leave Western OTB alone and focus on the real problems facing New Yorkers.”

Press release from Borrello:

“Although they already control the major levers of power in Albany, that hasn’t stopped Democrat One-Party Rule for brazenly and continually hunting for more opportunities to conquer and silence those outside their control. Their latest power grab targets Western Regional Off-Track Betting which has operated for five decades under a model of shared operational control between 15 county governments and the Cities of Rochester and Buffalo.

"However, changes under consideration right now would eliminate this cooperative structure of the past 50 years and replace it with a politicized board that would do Albany’s bidding. The voices of our rural counties would be silenced and the jobs and revenue they depend on put at risk.

"I am fiercely opposed to this last-minute attempt to slide this controversial proposal into the budget as the final details come together. It is another shameful attempt at rigging the system for political purposes and should be rejected.”

Statement from Hawley:

Hawley called the proposal "a power grab trying to diminish the influence of smaller, less populated counties."

"It's called Western New York OTB, not Erie County OTB," he said, responding to a text message from The Batavian. "This is similar to what Western New York complains about in the State Legislature. Excessive control by New York City. Shameful and wrong."

WROTB President/Chief Executive Officer Henry Wojtaszek, contacted today, said he and Board Chair Richard Bianchi are monitoring the situation.

“We are waiting to find out what the actual language of the proposed legislation is before making an official statement,” Wojtaszek said.

Currently, the individuals serving on WROTB’s 17-member board, which represents its 17-member municipalities, are appointed by their county or city (Buffalo and Rochester) legislative bodies.

Just a few months removed from what Western Regional Off-Track Betting Corp. officials reported as a record year for revenue, signs are pointing toward even greater earnings for Batavia Downs Gaming in 2023.

“We experienced a record 2022 and now the first quarter of 2023 is up 16 percent in what we distribute (to member municipalities),” WROTB President Henry Wojtaszek said following this morning’s board of directors meeting at the Park Road facility. “It’s the highest net win by more than a half a million for the corporation, so it’s really been a blockbuster first three months of the year for us.”

Jacquelyne Leach, the corporation’s chief financial officer, provided a report to The Batavian that shows that distribution of surcharge and earnings to the 17 participating municipalities for the first quarter of 2023 compared to the same time period in 2022.

The numbers indicate that $2,269,956 in surcharge and earnings was generated this year compared to $1,956,149 in the first quarter of last year.

Genesee County’s share increased by 18 percent – from $42,002 to $49,664.

Leach also pointed out that the "net win" for March was the corporation's highest ever, $7.7 million. "Net win" is defined as credits played in the machines less credits won, she said.

Wojtaszek said Batavia Downs Gaming is bucking the trend in the gaming industry, citing information shared at a recent conference in Atlantic City.

“We heard that while the industry is doing pretty well as a whole, the indication is that the brick-and-mortar part of the casino (business) isn’t necessarily up, depending where you are, geographically,” he said. “But we’re clearly a brick-and-mortar operation and we’re clearly having a banner year. Our numbers are definitely up.”

He said he is optimistic that 2023 will exceed last year’s figures.

“(The first quarter) is usually the slow season. We’ve experienced no slowdown and now we’re coming into the busy part – with the Triple Crown, the concerts and many other events that we have here. So, we’re looking forward to a great 2023.”

On another front, Wojtaszek said a committee looking into the possibility of expanding The Hotel at Batavia Downs met on Wednesday and is leaning toward recommending the expenditure of up to $100,000 for a feasibility study and architect’s rendering.

“We’re going to be careful in our analysis of it and spending any money, but in order to figure out whether or not the expansion of the hotel is warranted, we’re most likely going to have an architect give us some drawings and have a market study done as to the return on the investment … if we do expand,” he said.

Following last month’s meeting, Wojtaszek mentioned the possibility of adding 42 rooms to the 84-room facility, but today he backtracked a bit.

“We discussed it yesterday and decided not to sit on a number at this point,” he said.

He pointed out that the hotel has been very busy and sold out on many nights, but wasn’t sure if “we’ve hit that tipping point to necessitate additional rooms.”

Wojtaszek also noted that an expansion would enhance the ease of guests’ entrance into the hotel.

“We want to make sure we have a safe drop-off area and convenient drop-off area for people,” he said. “Now, it’s a difficult situation relative to the drop-off and entrance to the hotel. We’ve acknowledged that and we’re trying to give a better experience to the guests arriving at the hotel.”

He did say that Downs’ officials will address the drop-off situation regardless of the decision on expansion.

Western Regional Off-Track Betting Corp. officials are exploring an expansion of the Hotel at Batavia Downs, the 84-bed luxury inn that the public benefit company purchased from ADK Hospitality LLC of Buffalo in mid-2021.

“We’re taking a hard look to determine if we are going to do it, if it’s the right time and if the cost is right. We’re taking a cautious approach to make sure that it is something that we really need to do,” said Scott Kiedrowski, WROTB vice president/operations, following today’s board of directors meeting.

Kiedrowski and director Edward Morgan, chairperson of the Batavia Downs Operations Committee, reported on a meeting with David Hart, president of Hart Hotels, which runs the facility.

“Mr. Hart, along with Rick Likus (hotel general manager), spoke to the board about the operation is 2022, which was the first full year of ownership by Western Regional,” Kiedrowski said. “Our numbers are significantly headed in the right direction – very robust.

“The rooms are sold out on a regular basis; we have a lot of traffic coming, so we’re very pleased with the financials and his (Hart’s) report to the board of directors on just how well the hotel is doing.”

Kiedrowski said that expansion, if and when it was approved, would likely add to the north end of the existing hotel.

“We’re trying to see if the lobby should move and the extent of the expansion,” he said, mentioning that 42 more rooms are being considered.

Board Chair Richard Bianchi said he will select three directors to serve on a committee with senior management and hotel staff to look into expanding the hotel.

WROTB directors voted for the $8 million purchase in February 2021.

At the time, Chief Financial Officer Jacquelyne Leach said the corporation would be able to utilize 20-year tax-exempt bonds to project a savings of $600,000 while bundling the refinancing of a balloon payment due in October 2023 with the hotel purchase expenditure.

In November 2016, Batavia Downs Gaming and members of ADK Hospitality LLC, the hotel ownership team, cut the ribbon on the hotel. ADK Hospitality bought land from WROTB in March 2015 and invested $7.5 million to build the facility.

In other developments, directors:

• Approved a resolution to install floor and wall base at the 34 Rush restaurant/bar, contracting with WNY Tile & Sone Corp. of North Tonawanda for an amount not to exceed $19,139.

The expense will be covered by a portion of a $1.2 million insurance settlement stemming from a flood on the second floor when a pipe burst in September 2022, Kiedrowski said.

“The water did leak downstairs into 34 Rush, and there is a lot of remodeling going on in that area so we decided to replace the floor that did receive some of that water,” he said. “We are expanding the kitchen, which is just a normal course of business to make it bigger. So, while doing that we figured we would also take care of the floor.”

• Approved the purchase of a recreational trailer for use by performers during the Rockin’ The Downs Concert Series from Elizabeth Marino of Florida for $29,000.

Kiedrowski said a concert promoter informed management that the 2014 Forest River Salem Villa destination trailer would be available for purchase, thus fulfilling a need that previously was supplied at no charge by local companies.

“It’s for the performers to use right off stage,” he said. “It is well maintained. Now we have two of them and they are used for the acts.”

The board also approved paying up to $325,000 for the various bands and performers this summer. The eight-week concert series kicks off on June 23 with the Almost Queen tribute band.

Photo: 2016 file photo by Howard Owens

Edward Morgan (photo at right), who represents Orleans County on the 17-member board, said the powers-that-be at Batavia Downs Gaming “need to move ahead” in case the smoking waiver now in force is terminated.

Currently, Batavia Downs Gaming has an indoor enclosed smoking room only.

“The two-year waiver could be gone any day,” Morgan said at today’s board meeting. “We need to be prepared, even if it’s just a small heated outside area with no machines in it.”

Morgan said he visited the Del Lago Resort & Casino in Waterloo recently to check out its smoking accommodations. He reported that a 50- by 150-foot area, featuring about 150 gaming machines, has been installed outside – “exposed to all the elements."

“From the looks of it, people seem to use it to smoke and then go back inside to play,” he said, adding that he saw about a dozen people in the area during his midweek midday stop.

Morgan pointed to Batavia Downs Gaming surveys that reveal “how important it is to some of our patrons to be able to smoke at a machine.”

Scott Kiedrowski, vice president/operations, said that although a tri-county commission has approved a waiver for another two years, “there’s always a fear that something might change in the health department regulations or state regulations and we could lose our smoking designation.”

“A lot of casinos in the area and throughout New York and other states might have some stringent smoking requirements,” he said. “They have some outdoor areas, called smoke gardens, if you will, that are heated and covered with games outside … to have the ability to have smoking on the property but not inside the building.”

Morgan said it would be prudent for the board and management to start looking at options, including the location of an outdoor smoking area.

“Even if it was outdoors and heated, with no machines,” he reiterated.

While acknowledging the difference between private enterprises and not-for-profit businesses, the chairman of the Western Regional Off-Track Betting Corp. board of directors on Thursday defended the awarding of $30,000 in bonuses to the public benefit company’s senior management team.

At its January meeting, the board unanimously (by a 13-0 vote) passed a resolution to award “a discretionary bonus” to President/Chief Executive Officer HenryWojtaszek (photo at left) in the amount of $12,000 and to Chief Financial Officer Jacquelyne Leach (photo at right), Vice President/Operations Scott Kiedrowski and Vice President/Administration William White in the amount of $6,000 each.

Board Chairman Richard Bianchi said the bonuses were justified in light of leadership’s role in guiding the corporation to record revenues and earnings distributions to its 17 member municipalities in 2022.

According to figures supplied by WROTB, credits played (on the gaming floor) topped 1 billion for the first time ever, with net win (revenue) hitting a record $75 million. From that, nearly $8.5 million was earmarked for distribution to the municipalities – up more than $2.5 million from 2021.

“Determining executive compensation in a public benefit corporation can be challenging as you need to balance paying for performance against the fact that we must be mindful of public dollars,” Bianchi said. “But, we are also in a very competitive gaming industry. We have to compete for executive talent.”

Bianchi revealed that the board hired an outside compensation firm, Burke Group of Rochester, to review the pay scale and make recommendations.

“They found, based on revenue, responsibility and successful performance, that our team was below the median in pay in the industry,” he said. “Burke made suggestions that we are following, which we think are both fair and reasonable.”

He noted that the WROTB senior management team “is one that would be prized by any privately held company and would be proud to have.”

“In the private sector, these people all would be $250,000 to $500,000 per year executives,” he offered. “Though they earn a fraction of that, our bonus plan is a way to acknowledge their incredible contribution to our success and do so cost-effectively.”

Salaries for the four, as approved by the board, for 2023 are as follows:

• Wojtaszek, who started with the company in 2010 as general counsel before taking over as CEO in 2016, $264,898.

• Leach, who was hired in May 1989 as a staff accountant and worked her way up to CFO, becoming the first female officer at WROTB, $221,582.

• White, who became VP/Administration in 2012 following nine years as a director and a year as VP/Human Resources, $155,168.

• Kiedrowski, who became VP/Operations in 2016 after serving on the board for seven years, $155,168.

Wojtaszek’s salary has increased by 38 percent over the past two years but is not among the top 25 WNY CEO salaries, despite WROTB generating revenues greater than most of the other businesses, which are primarily in the healthcare sector.

Wojtaszek said that all 392 WROTB employees, plus the 20 who work for Hart Hotels but are paid by WROTB, have benefited financially as a result of the corporation’s successful year.

He disclosed that he approved merit raises to 20 employees and bonuses to two Hotel at Batavia Downs employees. In negotiations, union employees received a 4 percent raise – “our highest yet,” he noted.

“We’ve established a brand name that is synonymous to quality and great customer service,” Wojtaszek said. “And it’s all because of the hard work of our employees.”

Batavia Downs Gaming, Hotel at Batavia Downs and harness track is the hub of the organization, which also has off-track betting locations throughout Western New York. Most recently, Wojtaszek oversaw the Park Road Reconstruction Project, which features numerous enhancements on the property, and the purchase and refinancing of the hotel.

INVESTIGATIONS INTO OPERATIONS CONTINUE
On another front, inquiries into certain practices at WROTB continue, Wojtaszek said, adding that management and the board are cooperating fully with the Federal Bureau of Investigation and the New York State Comptroller’s Office.

“We’ve given them any and all documents requested and, beyond that, have made policy and procedural changes per their recommendations,” he said, referring to the state Comptroller’s probe into gold-plated health insurance for directors, suites at Buffalo Bills and Sabres games and reimbursement for using company vehicles. “We brought in a regulatory compliance firm – consultants who recommended how to improve our operation, and we have followed that advice.”

In December, the board approved a $20,000 contract with Personius Melber LLP of Buffalo to represent employees who have been questioned by investigators.

Reached by telephone yesterday, Rodney Personius said the employees in question “are not targets or subjects of any investigation but those who the organization (WROTB) wanted to be available for interviews.”

“OTB thought it would be appropriate for them to have a lawyer,” he added.

Personius said he did not wish to comment on what was discussed in the interviews, noting that between five and 10 employees were interviewed.

A lawsuit filed by an attorney representing Michael Nolan, a former WROTB chief operating officer, was dismissed due to time restraints last year but reportedly will be refiled.

Nolan is claiming that his federal First Amendment rights were violated when he alleged that he was retaliated against by WROTB leadership for speaking to federal agencies about alleged improper practices at the Batavia-based corporation.

The attorney representing WROTB issued a statement today supporting Wojtaszek’s contention that the corporation has cooperated with authorities.

“Since 2018, my firm instruction from the WROTB board of directors has been to cooperate with all agency requests for information and document subpoenas,” said Terrence Connors, partner, Connors LLP of Buffalo. “We have accomplished that goal, and no state or federal agency has ever advised that WROTB or any of the officers or directors is the target of any investigation for wrongdoing.

“In addition, WROTB has voluntarily engaged a prestigious compliance company staffed by compliance experts and a former FBI agent to review practices and policies and implement any necessary changes.  While there have been rumors and speculation, WROTB continues to return record profits to the 15 counties and the cities of Rochester and Buffalo.”

If and when iGaming comes to New York State, Western Regional Off-Track Betting Corp. officials say they want a piece of the action.

Speaking about the corporation’s lobbying efforts in Albany, President and Chief Executive Officer Henry Wojtaszek said that he is keeping abreast of a bill that would allow iGaming in New York.

“Six states actually have it already and they’re reporting record levels (of revenue),” he said during this morning’s board of directors meeting at Batavia Downs Gaming on Park Road.

An internet search of iGaming reveals that it’s an increasingly popular form of mobile betting or gambling that includes Casino games, real money slot games, sports betting and horse race betting. Per Transparency Market Research, the iGaming sector is set to generate $100 billion by 2024.

“iGaming is something that’s being proposed by State Senator (Joseph) Abbaddo (Jr.), who’s the chair of the Senate Gaming Committee,” Wojtaszek said. “He’s submitted it as a bill and it allows for mobile or remote gaming on your computer or on your phone.”

Wojtaszek said Batavia Downs Gaming would be asking to be included in this opportunity, along with Finger Lakes and Buffalo Raceway.

“We would be looking to establish an online platform, as well as other casinos across the state, so that we can be competitive within the industry,” he said, noting that WROTB’s Batavia Bets interactive online platform covers harness race betting only.

Currently, the other six states that permit iGaming are New Jersey, West Virginia, Michigan, Delaware, Pennsylvania and Connecticut, he said.

Abbaddo, a Democrat who represents the 15^th District (Queens), recently spoke about the bill, which moved forward into the State Assembly on Feb. 3.

He cited projections that iGaming would surpass mobile sports betting (which already is legal in New York State) and urged his colleagues to pass the bill into law.

“Every year we don’t do iGaming in New York, if you do the math, there’s roughly $4 billion lost – if you think of it that way; revenue lost – and lost to another state and to the illegal market,” he was quoted as saying.

Abbaddo said his goal was to get the bill passed by the end of this year’s legislative session.

In other developments:

• WROTB directors approved the promotion of Danielle Fleming to the Director of Human Resources position, a move up from her current role as payroll supervisor.

“We had three excellent candidates from within who applied and Danielle is the one who has been recommended for hire,” Wojtaszek said, adding that she started in the marketing department before moving to payroll. “She is very smart and very talented and we’re glad to have her here.”

• Batavia Downs harness racing’s handle in January and February 2023 represented a 35 percent increase from the handle at Buffalo Raceway for those two months in 2022. There had been no January-February racing at Batavia Downs previous to this year, when WROTB officials reached an agreement with the Western New York Harness Horsemen’s Association to conduct a slate two or three days a week during those months.

Wojtaszek called the limited meet a “great success” and will be exploring continuing it in 2024 depending on the WNYHHA’s position.

• Directors voted to enter into a contract with PPR Energy to provide the infrastructure needed to prepare for the installation of 16 electric vehicle charging stations at Batavia Downs Gaming.

Wojtaszek said the stations would be built in two locations – 12 of them in the general parking lot and four in the valet parking area. Right now, there are two EV charging stations in the valet parking lot.

• WNY Tile and Stone Corp. of North Tonawanda has been hired to install new floor and wall tile on the second floor in the restroom area at Batavia Downs Gaming and the same in the Park Place banquet room and boardroom on the first floor at a total cost of $160,000.

It was reported that the expense would be covered by insurance, stemming from flooding at the facility several months ago.

Additionally, directors approved a $69,900 contract with Painters Plus Home Decorating of North Tonawanda as the lowest bidder to paint the 67 rooms at the Hotel at Batavia Downs.

• Directors voted to purchase a block of eight tickets with parking from Live Nation for the 2023 concert series at Darien Lake at an amount not to exceed $30,000.

Pending verification by the public benefit company’s outside auditing firm, Western Regional Off-Track Betting Corp. generated a record $8.4 million in earnings and surcharge for its 17 member municipalities in 2022.

WROTB Chief Financial Officer Jacquelyne Leach, reporting at this morning’s board of directors meeting at the Park Road facility, put the total earnings and surcharge distribution number for last year at $8,454,261 – an increase of $2,661,077 from 2021.

“Since the corporation’s inception – we started in May of 1974 – this is the highest earnings’ distribution ever paid out to our municipalities,” Leach said.

When asked to explain the 46 percent jump from the previous year, Leach mentioned branch consolidation, the Hotel at Batavia Downs and the company’s ongoing marketing campaigns.

“On the branch side, we minimized our losses through closures and consolidations, so that helped, and then on the Batavia Downs Gaming side, one of the best additions is the hotel – because it’s such a great marketing tool,” she said. “We can get our patrons in and then let them enjoy their experience, including the free play (vouchers) and the food coupons, so it’s a win-win for everyone.

“Plus, all of our events here help contribute and, as always, we value our employees the most and we’re providing good customer service. And (Marketing Director) Ryan’s (Hasenauer) marketing efforts are a big part of it as well.”

Genesee County’s share for 2022 is at $178,732, about $50,000 more than Orleans and Wyoming counties’ amount. In 2021, Genesee received $123,409.

December 2022 numbers show $642 in surcharge while fourth-quarter earnings indicate that $26,701 will go into Genesee County coffers.

The corporation distributes earnings and surcharge to 15 Western New York counties plus the cities of Buffalo and Rochester.

WROTB President/Chief Executive Officer Henry Wojtaszek said the historic dollar amounts represent “a lot of hard work, great marketing strategies, great events and the strength of the hotel.”

“It’s really become a destination,” he said. “We provide, we believe, the best customer service in the industry. We hear it constantly on the floor, so it is no surprise that we had such a banner year … and we’re very happy to share that with our municipalities and give that money back.”

“It’s my honor and pleasure to nominate (Bianchi) as chair because leadership matters,” said Director Dennis Bassett, who represents the City of Rochester, as he wholeheartedly endorsed the Monroe County delegate for a 13^th consecutive one-year term. “He has taken us through tough times and through it all, I have learned that leadership matters.”

Bassett, speaking at this morning’s board meeting at the Park Road facility, said that Bianchi has the corporation’s “best interest at heart” while making the tough decisions and presenting a vision that has resulted in the purchase of a hotel, expanded summer concerts and providing exhibit space for public events.

“We’re experiencing our best years in OTB history and it is the direct result of the leadership of our board chair,” Bassett continued. “There has been sniping at the heels of the chair and this organization, but we have persevered.”

Director Richard Ricci (Seneca County) seconded the motion – noting that Bianchi “gives his heart and soul to this place” – before the board voted unanimously in favor of Bianchi.

That vote was followed by a unanimous vote to keep Edward Morgan (Orleans County) as the vice chair, a position the Murray resident has held for four years.

Bianchi thanked the board for its support, praising the directors’ work as well as the job done by WROTB officers, management and rank-and-file employees.

“The current board is more engaged than ever,” he said. “Let’s just keep up the great work.”

WROTB President/CEO Henry Wojtaszek echoed Bassett’s sentiments.

“Under Mr. Bianchi’s leadership, we have really good morale here with the workers, we've resolved a lot of the labor issues … and the business is at an all-time high,” he said. “And I think the outlook for the future is very bright. The physical plant is in great shape and WROTB is in the best shape it has ever been in.”

In other developments from today’s board meeting:

• Directors voted to contract with Mind Squad Consulting LLC of Orchard Park for up to $75,000 for training and professional development for WROTB’s key officers, starting with Wojtaszek and VP/Administration William White.

“Bill and I will enroll initially and then we will see the results of that type of training. If we think it is beneficial, we will continue on and then we’ll send our other two officers (Chief Financial Officer Jacquelyne Leach and VP/Operations Scott Kiedrowski),” Wojtaszek said.

He said the leadership team has done its “due diligence” regarding Mind Squad Consulting, with the goal to “have us operating at the highest efficiencies that we can.” He said the training will consist of in-person and virtual sessions, lasting up to eight months.

• The board authorized the purchase of a suite at Highmark Stadium for Buffalo Bills’ games for the next four seasons in the amounts not to exceed $109,000 for 2023, $113,000 for 2024, $117,000 for 2025 and $117,000 for 2026.

The resolution states that the expenditure is in line with WROTB’s “ongoing patron attraction and retention program … to provide entertainment event tickets for a certain level of our patrons as well as for special promotions.”

In a related move, directors approved spending $51,878 with Mark-It-Smart of Santa Ana, Calif., for Buffalo Bills’ clogs, coaster sets, backpacks and coolers to be used as promotional items.

• The board extended a contract with Kim Crawford to provide consulting services in respect to the surfacing and banking of the harness horse racing track for the 2023 winter meet that is currently taking place.

WROTB will pay Crawford an additional $21,000 to the previously agreed upon contract of $65,000 for 2023.

• Leach reported that $49,780 in surcharge from November activity will be distributed to the corporation’s member municipalities.

Photo: From left, Henry Wojtaszek, Richard Bianchi and Edward Morgan. Photo by Mike Pettinella.

If it makes financial sense, the Hotel at Batavia Downs on Park Road will be adding 42 rooms in 2024.

Henry Wojtaszek, chief executive officer/president of Western Regional Off-Track Betting Corp., said Thursday his team has been consulting with Hart Hotels, the company that manages the current 84-room luxury hotel.

“We’re going through the process, conducting engineering studies to see if it will be cost-effective,” Wojtaszek said after the morning's WROTB board of directors meeting. “The plan is to report back to the board in January.”

The hotel operated at 70 percent capacity in November, Wojtaszek said.

“Business has picked up,” he said. “Plus, we’re sold out for New Year’s Eve and have a big waiting list.”

Wojtaszek said that Batavia Downs Gaming’s New Year’s Eve party will include guests staying at the hotel as well as other patrons.

In other developments from today’s meeting:

• The board approved a contract extension with Don Hoover, director of live racing and race secretary, for January and February 2023 at a rate of $12,000 per month.

Hoover’s salary will be paid by the Western New York Harness Horsemen’s Association per an agreement with WROTB as a condition of conducting 15 live racing dates in January and February.

Racing will take place on Mondays and Thursdays in those two months, starting on Jan. 9, with a 3 p.m. post time.

Directors also extended a pact with Mark Lowe for live racing consulting services from Jan, 1 through March 31 at a rate of $3,500 per month.

Wojtaszek said Lowe is assisting the corporation in navigating through the Horseracing Integrity and Safety Act’s racetrack safety program and anti-doping and medication control program (with the latter going into effect next month).

• Wojtaszek announced that the 2023 Batavia Downs Summer Concert Series will feature eight concerts on Friday nights, starting on June 23 and ending on Aug. 11. He said the specific acts will be announced next week.

The board approved contracting with Canal Concerts, Inc., of Buffalo, to provide supervision of the series, including the hiring of bartenders, security and other employees.

Canal Concerts has played a role in the productions since 2017, Wojtaszek said. The approved contract will pay the company $5,500 per concert.

• Former Buffalo Bills running back Thurman Thomas will continue as WROTB’s spokesperson for two more years, thanks to a contract that will pay Mariacher Thomas LLC $120,000 through Dec. 31, 2024. The terms of the agreement have not changed, Wojtaszek said.

Thomas has represented Batavia Downs Gaming at events, promotions and advertising campaigns since 2013.

Wojtaszek said that the food service portion of the gaming facility’s 34 Rush will be closed for 10 to 14 days in early January for the installation of a new kitchen hood. Food will be provided by Fortune's and Homestretch Grill.

The board authorized paying $52,700 to Crosby Brownlie, Inc., of Rochester, the lowest bidder, for the work.

• The board voted to spend $240,000 over the next 12 months for the services of three lobbying firms.

The one-year contracts are with Upstate Strategic Advisors, LLC, of Buffalo, represented by Sam Hoyt ($3,500 per month); Mercury Public Affairs LLC of Albany, represented by Patrick McCarthy ($8,000 per month), and Bolton-St. Johns of New York City and Albany, represented by George DiRosa ($8,500 per month).

Wojtaszek said the consultants provide expertise in the areas of proposed legislation in Albany, communication with local municipalities and in public relations.

With one month remaining, 2022 is shaping up to be another record year for Batavia Downs Gaming as actual earnings are well ahead of management’s expectations.

Speaking this morning following Western Regional Off-Track Betting Corp.’s board meeting at the Park Road facility, Chief Financial Officer Jacquelyne Leach said the outlook for distributions to the public benefit company’s 17 municipalities is extremely positive.

“Combined earnings and surcharges could very well be anywhere between $8.5 million and $9 million in distributions this year,” Leach said. “It’s a record year.”

That number represents a difference of more than $3 million from what Leach and WROTB officers projected in their 2022 operating plan. She said their conservative “budget” was crafted after taking several factors into consideration.

“Well, we looked at a couple of things,” she said. “On the pari-mutuel (harness horse racing) side was the (potential) impact of sports betting being legalized in New York State. And on the other side, the gaming side, we had the Park Road (Reconstruction) Project, and we didn’t know the effects of the road being torn up.”

Leach also said management wasn’t sure if COVID-19 would rear its ugly head again.

Looking ahead, the 2023 operating plan is calling for $6 million in revenue distribution to the municipalities -- $5,381,976 in operating earnings and $618,734 generated from surcharge.

“For 2023, we have factored in an additional decrease in our pari-mutuel wagering. That's part of it,” she said. “Also, because of the volume of business we're experiencing here at Batavia Downs, we need additional workforce to handle the increased volume.”

She said next year’s plan – which she considers “a fluid and working document” – does not call for any OTB branch closures but, conversely, includes the addition of four E-Z Bet locations.

When it was mentioned that actual figures could exceed projections in 2023 as well, Leach said, “That’s what we're going to try to do.”

Leach reported that $54,370 will be distributed to municipalities, including Genesee County, from October’s activity.

Previously: WROTB preliminary 2023 operating plan shows a 15.9 percent increase in distributions to municipalities

That was one of the key points shared by WROTB Chief Financial Officer Jacquelyne Leach this morning at a 2023 operating plan workshop for the public benefit company’s board of directors at Batavia Downs Gaming on Park Road.

Leach (photo at right) said that preliminary numbers indicate that, overall, net revenue available to the 17 municipalities, which include Genesee County, will increase by about $800,000 to $5.8 million – a 15.9 percent jump. Those figures are based on net revenue before post-employment benefits.

She also predicted that the amount of money handled at the corporation’s nine branches will go up by $850,000 to $47.4 million while Batavia Downs’ net win will increase by $3 million to $77.5 million, and intertrack wagering and live racing handle will be remain unchanged.

Moreover, Leach said that Batavia Downs’ net gain from operations will increase by about $375,000 to $6.6 million – with net losses from operation decreasing by about $409,000 to $1.4 million and branch retained surcharge revenue increasing by about $16,000 to $619,000.

The surcharge consists of a 5 percent tax that the corporation collects from pari-mutuel (horse racing) winning tickets and, in timely fashion, distributes to its member municipalities and other counties in New York State that have a race track.

Leach emphasized that the operating plan has not been finalized and the numbers could change prior to a vote by the board at its Dec. 1 meeting.

“This is still a work in progress,” she said. “The board, ultimately, will either vote to approve or disapprove the recommendations of management that really will come to fruition in the final plan that will be sent out in summary form to members next week."

Nine of the 17 board members attended today’s workshop, including a new member, Vincent Horrigan, who has been appointed to represent Chautauqua County. Richard Siebert, Genesee County’s director, was not at the non-mandatory meeting.

The plan, which projects the goals of the corporation’s components in monetary terms, is “a collective effort between officers, department heads and staff,” Leach said, adding that the packet features historical data from 2021 and 2022 and anticipated 2023 numbers.

WROTB’s major segments are gaming, of course; live racing and intertrack wagering, food and beverage, and The Hotel at Batavia Downs.

“Keep in mind those two major revenue sources, which are the pari-mutuel wagering and the video gaming activity, are based on our patrons,” she said. “That’s why we say this is a fluid, working document. It is a guideline for the corporation in which to maneuver in the next year.”

She said part of management’s responsibility is to “react” to situations and trends, such as snowstorms that keep customers away from the branches and Park Road, inflation, rising product costs or public health concerns such as COVID-19 – “and I hope we don’t have to deal with that again,” she noted.

“We have adjusted some of our expenses upward … such as the utilities or any of our cost of goods, our food costs,” Leach said. “And, conversely, forecast what are our increases in our … product to end user, the patrons, the customers. So, there's a lot that goes in to putting this plan together. Not only the historical trends and current trends, but where we are going as well. And where do we want to be? And how do we achieve … our net win goals for the next year.”

BRANCH OPERATIONS

Leach said the nine OTB parlors employ 31 people (about 10 percent of the total WROTB employee count) and are projected to generate about $760,000 in surcharge in 2023. This segment, however, has not been profitable in recent years – and the 2023 operating plan indicates a net loss of about $1.2 million.

When asked by Director Dennis Bassett (City of Rochester) if it might be beneficial to eliminate the branch operation, Leach and Chief Executive Officer Henry Wojtaszek said management has downsized that part of the corporation in recent years.

During the OTB parlor heyday, the corporation operated more than 30 branches.

Branch wagering did increase during the six months that Batavia Downs Gaming was closed due to COVID, Leach pointed out.

“That’s when the OTBs and Batavia Bets (online wagering) became invaluable to the corporation,” she said. “Batavia Bets stayed open and then our OTBs opened up at the end of May (2020) and beginning of June. So, at least we had money coming in the door.”

She also spoke of the importance of the EZ Bet locations (in restaurants and bars), which feature TVs, simulcast equipment and terminals for wagering without the overhead of paying staff members.

BATAVIA DOWNS GAMING

Leach said that credits played into the VLTs and credits won make up the “net win” – which is projected to increase from $74.5 million to $77.5 million in 2023.

“So, our total gross operating income increased just about $2.7 million (per the preliminary plan),” she said, adding that a revision is coming due to a decision to reduce the number of summer concerts from 10 to eight in 2023, and upon receipt of the hotel operating plan.

WROTB pays 49 percent of the net win to the state Division of Lottery, and that is expected to increase by $1.5 million, Leach said. Operating expenses also are going up, with the biggest increases to the horse racing purses, breeders’ fund and to the Western New York Harness Horsemen’s Association.

All told, net gain from Batavia Downs Gaming operations is projected to increase by about $374,000, she said.

GENERAL & ADMINISTRATIVE

Leach said that in 2023, management (per information received from department heads) will be assigning 65 percent of the $6.7 million General & Administrative expense to the Batavia Downs Gaming side of the operation and 35 percent of that amount to the off-track betting (racing, intertrack wagering, branches) side of the operation.

This is up from a 51/39 percent split in 2021 and 2022.

“And it makes sense because in the past two years we have closed eight brick-and-mortar facilities,” Leach said. “This procedure and how the corporation allocates those funds have been approved by Western’s outside audit firm. It’s sound reasoning the way it's done.”

HOTEL AT BATAVIA DOWNS

Leach said she just received a report from The Hotel at Batavia Downs, which is operated by an outside company.

“Those numbers will be incorporated into the final plan,” she said. “It was an addition of 92 rooms, which increased the bottom line by about $12,000.”

Western Regional Off-Track Betting Corp. management and union employees at the public benefit company’s branch locations have agreed to a pay contract that will give the workers at 3.5 percent raise for 2022.

The agreement was announced this morning at the WROTB board of directors meeting at Batavia Downs Gaming on Park Road.

WROTB President/CEO Henry Wojtaszek said it is a three-year pact extending through 2023. The supervisory and non-supervisory branch employees will get the 3.5 percent retroactively back to the first of the year.

The percentage for 2023 has yet to be determined, he said, but noted that the union employees will receive the same pay increase that the rest of the corporation’s employees receive.

“It has been a few years since they've been negotiating and this contract will take them to the end of next year -- to the end of 2023,” he said. “We're very happy and excited to have it completed. And we look forward to a great working relationship.”

Wojtaszek said changes in the contract focus on some work rules related to branch operations and the amount of employee contribution to the health insurance premium.

Each side has “ironed out some of the contribution limits for health insurance,” he said, adding that the union agreed to paying 5 percent of the cost for health insurance.

WROTB officials have been looking at the health insurance issue in recent months, stemming from a report from the New York State Comptroller’s Office and questions from Western New York lawmakers about the “gold plated” coverage given to the board members.

Wojtaszek said there is a good chance the 5 percent contribution will be put in place for all of the company’s employees.

“We certainly intend to suggest that and make that as a recommendation,” he said. “It’s a reasonable amount to have. Again, I think the best part about it is that we were looking to have everybody in the company (including directors) contribute for their health care.”

He credited VP/Administration William White, Payroll Supervisor Danielle Fleming and consultant Carl Monti for their work in reaching the agreement, which will affect about 60 supervisory and non-supervisory employees.

WROTB has pared its branch operations significantly in recent years. Currently, there are nine “brick and mortar” locations, plus Dial-A-Bet and Intertrack Wagering at Batavia Downs.

The Batavian has reached out to Antonella Rotilio, labor relations representative for the Long Island-based United Public Service Employees Union, for comment.

In other developments:

• Wojtaszek mentioned “the great curb appeal for the public” when asked to comment about the completion of the Park Road Reconstruction Project.

“It’s beautiful … It's showing now in our ability to have catering events and other trade shows,” he offered. “The people that are coming in to look at the place are really impressed with the way it looks as you approach the building now.”

He said enhancements paid for by WROTB, such as lighting and trees, have been installed.

“The trees have to grow in and then the grass has to grow a little better, but everything's been seeded and everything has been planted. The light fixtures – the street lights – (are in) and we will add some flags and other measures that will make the approach look even better,” he said. “We will be starting out with American flags for Veterans Day.”

• Batavia Downs Gaming staff will be renovating three bathrooms and installing new carpet tile on the second floor – work necessitated by extensive flooding when a pipe burst in mid-September.

The board approved a contract with Tarkett USA, Inc., for carpet and tile in the amount of #28,857.40, to be installed in the administrative, information technology and finance departments, and an expenditure of up to $130,000 to rebuild the bathrooms to current standards.

• Chief Financial Officer Jacquelyne Leach reported third-quarter earnings of $2,230,525, which will be distributed to member municipalities. Genesee County is set to receive $47,228 of that money, plus another $1,040 in September 2022 surcharge.

The corporation’s total handle for last month was $4.6 million, down about 10 percent from September 2021, while the video gaming “net win” was $6.4 million, up by about 2 percent from the same period last year. All told, operational earnings for September rose by 66 percent to $693,628.

The attorney representing Michael Nolan, the former chief operating officer of Western Regional Off-Track Betting Corp., said today that he plans to appeal a federal district court judge’s ruling to dismiss Nolan’s lawsuit against the public benefit corporation.

“The misconduct on the part of WROTB is the subject of inquiries by state and federal agencies, and for good reason,” said Steven M. Cohen of the HoganWillig law firm in Amherst. “We are confident justice will be done, despite the strong political influence of President Wojtaszek and the lobbyists and attorneys on his payroll.”

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District court judge dismisses suit against Western Regional OTB by former employee

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Cohen said an appeal will be filed within 30 days of the entry of Judge Skretny’s order, pursuant to FRAP Rule 4(a)(1)(A).

On Wednesday, Justice William Skretny of the Western District of New York in Buffalo, dismissed – based on statute of limitations -- a suit by Nolan, who claimed that his federal First Amendment rights were violated when he alleged that he was retaliated against by WROTB leadership for speaking to federal agencies about alleged improper practices at the Batavia-based corporation.

While Skretny’s ruling closes the case at the federal level, other aspects of the lawsuit – New York State Causes of Action – will continue, Cohen said.

“We are confident that at least parts of Judge Skretny’s Decision and Order will be overturned, but even if not, the State Causes of Action will be going forward, and Messrs. Wojtaszek and Bianchi, and others, will be deposed as part of the New York State Causes of Action,” Cohen offered. “Judge Skretny’s order specifically dismissed the ‘federal Causes of Action’ without prejudice as to the State Causes of Action.”

Cohen was referring to Henry Wojtaszek, WROTB president and chief executive officer, and Richard Bianchi, WROTB board president.

He said that the Notice of Appeal will be filed with the Clerk of the United States District Court for the Western District of New York. The formal appeal is to the 2nd Circuit Court of Appeals, located in New York City.

“After we file the Notice of Appeal, we need to perfect the appeal, submit briefs, as will our opponents, and then the matter will be heard by the 2nd Circuit,” Cohen said.