Buffalo Mayor Brown Set to Become New York’s Highest-Paid OTB Director: Investigative Post

The current head of Western OTB earns more than his colleagues in New York, and there is talk of an even higher salary for the mayor.

Buffalo Mayor Byron Brown. Photo by Garrett Looker.

Buffalo Mayor Byron Brown has a good chance of becoming New York’s highest-paid OTB executive if he accepts an offer to become the new president and CEO of Western Regional Off-Track Betting Corp.

Henry Wojtaszek, the current head of OTB, earns $299,000, significantly more than the $220,000 to $250,000 paid to other OTB executives. Two board members told the Investigative Post that Brown’s reported compensation ranges from $275,000 to $350,000.

Pay in that range would be as good or better than some private racetracks and casinos. The head of Finger Lakes Gaming & Racetrack, for example, reportedly makes about $280,000. That operation is owned by Delaware North.

At least one OTB board member has advocated for the new CEO to earn more than $300,000, according to Schuyler County Executive Paul Bartow. Bartow said he favors a salary closer to $275,000.

Regardless of his compensation package, Brown is set to receive a big raise. As mayor, he currently earns $178,518.

The city is a much larger organization than OTB, with an operating budget this year of $602 million and a staff of 2,770.

Western OTB, meanwhile, expects to post revenue of $102 million this year, giving it an operating budget of $53 million after statutory payments to the state. The agency had 469 employees last year.

Brown was elected to head Western OTB at a special meeting Sept. 5, although he has not yet accepted a job offer. He and OTB management — namely Dennis Bassett, the board chairman, members of the hiring committee and senior staff — are continuing to negotiate a contract. Board members told Investigative Post they expect to discuss and possibly vote to approve the contract at their regular meetings on Wednesday and Thursday.

Bassett did not respond to a question about how much compensation Brown was seeking or was offered, but said he and others were “working” to get a vote on the matter this week.

City spokesman Mike DeGeorge also did not respond when asked how much Brown might earn.

The CEO of Long Island’s Suffolk OTB makes $250,000. The CEO of Nassau Island’s OTB makes $230,000. And the CEO of Albany-based Capital OTB makes $220,000. A fifth New York OTB, located in the Catskills, did not respond to a request for information.

Meanwhile, some OTB observers question Brown’s hiring. It’s “a good example of why the public sees Western OTB as a nest of cronyism and patronage,” said John Kaehny, executive director of the Reinvent Albany good-government organization.

“This is a legacy of political bosses, corruption and partisan machines that should have been swept away a long, long time ago,” Kaehny said. “And yet here we are.”

Michael Kane, former CEO of Western OTB and now president and executive director of the New York Gaming Association, said he was “a little surprised” that Brown could earn more than $300,000, but said he trusted OTB to manage its budget.

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“Do I think that’s an exaggeration? No, I wouldn’t say that,” he said. “I’m sure Western knows its business model and what the expectations are for Mr. Brown.”

Bartow, of Schuyler County, said he would prefer a salary of $275,000 and a one-year contract for Brown. That’s because Brown has experience in government but not in the gaming industry, Bartow said, noting that the agency should give Brown a chance before signing a longer contract.

“You want a nice way to end it,” if it doesn’t work out, he said. “He’ll have to move on immediately.”

Brown was chosen as CEO in part because of his Albany connections, board members told the Investigative Post. OTB intends to change or amend several state racing and gaming laws to ensure its survival as horse racing’s popularity has declined, they said. OTB’s penny and nickel slot machines currently subsidize the racetrack. However, the state license to operate the slot machines is contingent on operating the racetrack.

Among the requested changes is permission to place EZ-Bet terminals in Buffalo. This is currently not allowed due to Hamburg Gaming, which is operated by Delaware North, having an effective right of veto over machines located within a 30-mile radius of its facility.

Bartow said he is optimistic about Brown joining OTB.

“It’s an evolutionary change. It’s exciting,” he said. “We want to do it in the most productive way possible.”

published 9 seconds ago – September 24, 2024