Elected officials including Assemblymember Monica Wallace, State Senator Sean Ryan, and Erie County Comptroller Kevin Hardwick are criticizing the board members and executives of Off Track Betting (OTB) regarding contract buyouts and severance packages. Hardwick stated that it is time for the "gravy train country club culture" at OTB to end.
Last month, the board members voted to buy out President and CEO Henry Wojtaszek and two other executives from their contracts. Ryan described these actions as those of corrupt corporations focused on self-interest and excessive financial gain. Wojtaszek's salary of $287,000 is higher than Governor Kathy Hochul's annual pay of $250,000. Ryan accused Wojtaszek of corruption and wanting to take more taxpayer dollars upon leaving.
The leaders are urging OTB to revoke the severance pay packages before the board's next meeting on July 24th. Wallace emphasized that if the packages are paid, $500,000 will be diverted from public services in counties and cities. In 2019, Wallace passed the Severance Pay Limitation Act, which restricts severance pay for public employees to three months' salary. She argued that OTB's buyouts violate this law. Wallace criticized the board members and executives for treating OTB as their personal piggy bank and expressed hope that they would do the right thing and rescind the contracts.
However, OTB released a statement combatting the various complaints and corrected Assemblymember Wallace who was mistaken on her application of the Severance Pay Limitation Act as it pertains to the buyouts.
The full statement can be found below:
As always, Western OTB is focused on running the best OTB in the state. By any metric, the hard work being done at our branches, Batavia Downs, and our Board is working, and those results should be recognized. We have continually set revenue records in the last three years, and that means more critical revenue going to local governments across the region.
We’re confident in the multiple legal opinions asserting the recent Board decision on severance and compensation is appropriate and legal. It is clear we are not organized under chapter 43-a of the consolidated laws, and the Severance Pay Limitation Act does not apply.
We look forward to working with our partners in government. We hope that sometime very soon we can move past issues that have already been addressed. It’s not about politics. It’s about results, and that’s what our team has consistently delivered for years.
In a written opinion provided to members of OTB’s board on Friday, renowned attorney Terry Connors correctly points out that the state’s Severance Pay Limitation Act has no bearing on a June 27 decision by the agency’s board to renegotiate buyouts for three departing executives, including CEO and President Henry Wojtaszek.
From the OTB Board of Director’s point of view, this matter is decided and closed. We have now shifted toward finding our new leadership team. -Dennis Bassett, Chairman of the Board of Directors, Western Regional Off-Track Betting
“When Assemblymember Wallace made her public statement that OTB was only permitted to provide limited severance payments to its executives, OTB asked me to review the issue. While I have great respect for Assemblymember Wallace, our review suggests she was wrong and cited an inapplicable statute. Nevertheless, OTB will cooperate with any agency that wishes to review the severance payments.” -Terrence M. Connors, Esq.