LOCKPORT, N.Y. — The Western Regional Off-Track Betting Corporation has been the subject of federal and state investigations, audits and legal opinions since at least 2019.
Perhaps the two people blowing the loudest whistles were former New York State Senator George Maziarz and attorney Steve Cohen on behalf of his client, former OTB Chief Operating Officer Michael Nolan.
"I think this is total vindication for me, for the message that I've been trying to carry out," Maziarz said.
Cohen said he is feeling vindicated as well.
"There was a lot of stench, a lot of stink with the Western Regional Off-Track Betting Board and this sweeps it all clean," he said.
The enacted state budget included language immediately unseating all 17 board members, establishing new procedures for appointments and weighting votes to skew influence to the population centers among the 15 counties and two cities, Buffalo and Rochester, that govern and collect revenue from the public benefit corporation. The original sponsor, state Senator Tim Kennedy, D-Buffalo, highlighted ethics concerns as the reason for a reboot.
"It is my belief that when honest people are appointed that moving forward Western Regional Off-Track Betting is going to be operating with the disinfectant of sunlight," Cohen said.
Cohen and Maziarz have repeatedly accused the OTB of impropriety and misuse of public funds, specifically but not exclusively, offering its board members an expensive health care plan and using tickets and suites meant for high-roller gamblers on themselves, friends and family. However, there have been no indictments, arrests or charges to this point.
Cohen and Maziarz believe it's because the board and high level executives have insulated themselves with expensive attorneys.
"It's totally illegal and unethical for them to be using taxpayer money to hire attorneys to represent people who are under investigation for stealing from the taxpayers," Maziarz said.
Cohen said his client Nolan was ostracized and ultimately fired because he cooperated with an FBI probe. Nolan is moving forward not only with civil litigation on his own behalf but is also suing on behalf of the public in an attempt to recover funds.
Maziarz said the Legislature's action should put law enforcement on notice while also increasing transparency and accountability moving forward. Republicans in the Legislature meanwhile say they believe this is a power grab by Democrats.
They said it minimizes the voices from rural towns and villages including Western OTB's flagship Batavia Downs in Genesee County.
Current chair Richard Bianchi also pointed out while the corporation has been under intense scrutiny it returned record high profits to the municipalities last year.