Erie County comptroller says there has been a 'seismic shift' in OTB's openness

Oct. 9—Erie County Comptroller Kevin Hardwick said he left a meeting earlier this week with Western Regional Off-Tracking Betting Corp. senior management sensing there had been a "seismic shift" in the public benefit corporation's attitude about sharing information and being upfront about operations.

Hardwick, who has in recent weeks stepped up efforts to compel OTB to answer questions about its inner workings, said Friday that while the attitude is better, his office is still expecting more answers from the people who run Batavia Downs and OTB branches in Erie and Niagara counties and across Western New York.

"We went down (our list of questions) and ticked them off and they provided us answers. I assumed I would go in there and they would give us some reports about what a good job they are doing and not answer our questions," Hardwick said.

'That's not to say that we were satisfied with all their answers to all our questions, but I think it's a seismic shift in their approach and their attitude to handling us and I'm grateful for that," Hardwick added.

In recent weeks, Hardwick sent OTB CEO and President Henry Wojtaszek a series of inquiry letters in which he requested more detailed information about various aspects of OTB's operation, including the handling of sporting game and concert tickets as part of its promotional program, and fully funded health insurance provided to members of OTB's board of directors.

In response, Wojtaszek invited Hardwick and other representatives of the 15 local counties and the cities of Buffalo and Rochester to a private meeting at Batavia Downs to discuss various aspects of the operation. The meeting, held Wednesday without the public or members of the press present, included Hardwick and fiscal officers from seven other counties served by OTB.

Topping Hardwick's list of questions still to be answered are the number of board members that are currently eligible for OTB-paid health insurance and the total cost of that expense.

Hardwick said OTB officials told him they would provide an accurate number of directors receiving the health insurance but also indicated that delving into the cost of the perk could involve a violation of the Health Insurance Portability and Accountability Act of 1996, commonly known as HIPAA. The federal law protects people's sensitive health information from being disclosed without their knowledge or consent.

Hardwick said his office isn't interested in personal health information, rather concrete numbers on how much it costs OTB to provide health insurance to members of its board.

Both the state attorney general and the state comptroller have issued opinions that suggest OTB's part-time directors are not legally allowed to accept health insurance as compensation for board service.

OTB officials are now contesting those opinions, with Wojtaszek noting that the corporation's private attorney, Terry Connors, has developed his own opinion suggesting the health insurance perk is allowed. During an interview on Thursday, Wojtaszek said OTB is prepared to argue its position in court if necessary.

Hardwick said he "feels strongly" that OTB's board directors should not be receiving fully funded health insurance from the public entity. He said he believes the opinions on the matter from the state attorney general and state comptroller have weight but also thinks, in light of the fact so many Western New Yorkers in other walks of life contribute to their health coverage in some way, the free perk is not appropriate.

"This is probably my biggest bone of contention," he said.

Hardwick said he walked away from Wednesday's meeting feeling better about the way OTB is now managing another perk: tickets to sporting games, concerts and other events that are supposed to be given to high rollers at Batavia Downs.

Last fall, state auditors found OTB officials improperly helped themselves to $121,000 worth of tickets to Buffalo Bills and Buffalo Sabres games, concerts and other events. Those tickets, according to the audit, were used by OTB employees, board directors, friends, family members and associates.

On Thursday, Wojtaszek said OTB is now only sending a single designee to sponsored events.

Hardwick said he was glad to see a new policy in place for the handling of promotional tickets and hopes OTB will continue to be vigilant about ensuring that guests — not relatives and friends — benefit from access to suites at Highmark Stadium, KeyBank Center and other venues.

"It was pretty apparent from the conversations we had in the meeting the other day, the ticket policy was lacking or there was no policy," Hardwick said. "It was a lot of family friends and family and that was a problem. They've instituted new procedures and I think they are being a lot more careful. I think the policy in place today is night and day from what it was before and we're certainly pleased by that."

Hardwick is reserving judgment on OTB's purchase of a hotel near Batavia Downs, expressing concern in one of his letters about the amount paid for the property. While his office estimated that the original owners built the hotel for between $5 million and $5.5 million, OTB paid $7.5 million for the site.

Wojtaszek said an appraiser hired by OTB estimated that the property was worth at least $8 million and he considers the hotel purchase a "fair deal" and a sound investment.

Hardwick said his office was assured on Wednesday that it would get a copy of the actual appraisal, which it had not as of Friday.

As for the future, Hardwick said he's expecting to maintain an open dialogue with Wojtaszek and other OTB officials.

"Stonewalling just lent the appearance of impropriety so they decided to be a little bit more transparent and I think that was a good move on their part," he said.