GOP legislators in Niagara County back legal effort to fight OTB changes
Mark Scheer, Niagara Gazette, Niagara Falls, N.Y.
4 min read
Jun. 22—Republicans in the Niagara County Legislature agreed this week to take an initial step toward hiring outside legal counsel to sue the state in an effort to reverse budget language that changed the makeup and voting structure of Western Regional Off-Track Betting Corporation's Board of Directors.
In a 10-3 vote on Tuesday, lawmakers approved a resolution sponsored by legislator Tony Nemi, R-Lockport, to "commence all necessary legal action" to prohibit the implementation and enforcement of budget language approved by Albany Democrats in May. The language applies to WROTB only; no other OTB operations in the state were affected.
Nemi's resolution identifies the State of New York, the governor and the state senate and state assembly as "potential defendants" in the possible legal case.
Officials said the matter would involve the hiring of outside legal counsel to assist the county in investigating the steps that state lawmakers took before enacting language in the 2023-2024 state budget, which was adopted on May 2.
Assistant Niagara County Attorney Katherine Alexander said counsel engaged by the county would investigate potential violations of home rule law and the state constitution as they relate to the adoption of the budget language that changed WROTB's board and its voting structure.
"It would be to investigate the steps that were taken to implement this law as well as the law itself," she said.
WROTB oversees the operation of gaming parlors and EZ Bet locations across Western and Central New York, however, the public benefit corporation's most lucrative draw is Batavia Downs, a complex in Genesee County that includes a horse racing track, a casino and a hotel.
The agency, which is overseen by former Niagara County Republican Committee chair Henry Wojtaszek, was flagged by state auditors for distributing $121,000 of tickets to professional sports games, concerts and other events — purchased to promote Batavia Downs — to OTB officials, board directors, family members and associates.
In addition, the state comptroller and state attorney general have both challenged WROTB's decision to provide fully paid health insurance coverage to part-time board directors.
In the wake of criticism from both state agencies, WROTB says it has adopted policies to tighten oversight of promotional tickets and put an end to health benefits for new appointees to board director positions.
Wojtaszek acknowledged during a recent interview that WROTB remains the subject of undisclosed investigations involving what he would only describe as entities at the state and federal level.
Language in the state budget resulted in the immediate removal of all 17 board directors who previously represented the 15 counties and two cities served by WROTB. It also created a weighted voting system in favor of larger stakeholders in the operation, including the cities of Buffalo and Rochester and the counties of Erie and Monroe.
The measure was led by state Sen. Tim Kennedy, D-Buffalo, who said he felt changes in oversight were needed to help put an end to what he described as a "pervasive culture of corruption" at WROTB.
Eleven stakeholder communities including Niagara County have since reappointed the same individuals who represented them on the prior board. Genesee County appointed retired judge Charles Zambito to replace long-time director Richard Seibert, who stepped down in May. The remaining five seats, including those representing Buffalo and Erie County, remain unfilled.
Republicans have argued that what Democrats describe as a reform effort is really intended to give greater control over the organization to larger municipalities at the expense of smaller ones like Niagara County.
During Tuesday's county meeting, Republican legislator Chris Voccio, R-Niagara Falls, described it as a "power grab" led by a state lawmaker from "deep blue Buffalo."
"This is a power grab and it is shocking to me that any elected official from Niagara County, any political party chair from Niagara County or any political party chair from any of the counties outside of Erie County or maybe Monroe County would think that this is a good thing, other than Senator Kennedy," Voccio said.
Minority Caucus Leader Chris Robins, D-Niagara Falls, questioned the value of the county obtaining outside legal counsel to investigate, while suggesting county Republicans were themselves playing politics by supporting Nemi's resolution.
"This is political and the only thing we're doing this for is political and that's bad," Robins said.
Majority Caucus Leader Rich Andres, R-North Tonawanda, said he thinks it's important for the county to consider mounting a legal challenge because of the way Albany Democrats asserted their power to change WROTB. The move came without consultation or approval of the counties involved, he added.
Further, Andres argued, in approving that budget language, Albany lawmakers set a precedent that could allow the state to trample on the county's home rule rights in other ways in the future.
"The rest of these are not changing, the other OTBs," he said. "It's this Western Region only. Nobody could tell me that that isn't smacking of a political type of move, and I think it's scary that they can do it."
