New York State Comptroller Thomas DiNapoli is calling for a major overhaul of Western Regional Off-Track Betting (WROTB) following a scathing audit that highlights systemic failures in financial oversight and operational management. The report, which examines the period from January 2021 through December 2024, paints a troubling picture of a public benefit corporation struggling to adapt to a shifting gambling landscape while allowing costs to spiral out of control.
For Western New York taxpayers and the 17 participating municipalities—including Buffalo and Rochester—the findings are particularly concerning. WROTB is designed to generate revenue for local governments, yet DiNapoli’s audit uncovered “poor oversight by the board of directors, significant cost overruns, and critical estimation errors” that have hampered its mission.
“The Western Regional Off-Track Betting Corporation is under significant pressure as revenues from horse racing and wagering operations continue to slide,” DiNapoli stated. “It must rein in costs and bolster its financial operations. While I am encouraged by the initial steps taken by the current board and new management, continued progress is essential to ensure this entity serves its intended purpose for local taxpayers.”
A Breakdown in Board Oversight and Transparency
The audit suggests the WROTB board of directors effectively abdicated its oversight responsibilities, allowing management to dictate financial spending with little pushback. According to investigators, board members frequently lacked the financial reports necessary to track spending accurately and often received critical data too late to make informed decisions.
Furthermore, significant policy changes regarding annual operating plans were reportedly made during undocumented workshops. The lack of transparency extended to procurement; auditors found that the board failed to authorize numerous goods and services contracts valued over $15,000, violating its own internal policies by relying solely on management’s discretion.
Financial Analysis: Declining Handle vs. Rising Costs
The most alarming aspect of the report is the widening gap between the corporation’s gaming handle and its operational spending. While interest in traditional horse racing wagers has plummeted, internal costs—specifically salaries and professional services—have surged.
| Financial Metric | Audit Findings (2021-2024) | Impact / Status |
|---|---|---|
| Total Wagering Handle | Declined 34% ($23.5 Million) | Lower distributions to local governments |
| Operating Expenses | Increased 22% ($8.4 Million) | Outpaced revenue growth significantly |
| Salary Expenditures | Increased 38% | Exceeded 2024 operating plan by $400,000 |
| Professional Services | Increased 23% | Totaled over $2.5 million in 2024 |
The audit also highlights a lack of accountability regarding external consultants. WROTB management allegedly entered into contracts for legal services and lobbyists without proper board approval, exceeding authorized spending by more than $1 million. Of the 17 consultants retained, nine provided no written reports of their work, and several others provided only verbal updates.
Persistent Issues with Promotional Spending
This is not the first time WROTB has been under the Comptroller’s microscope. A 2021 audit revealed over $121,000 spent on luxury items, including sporting event tickets, concerts, and alcohol for board members and employees. While the corporation has improved its record-keeping for promotional tickets and updated its take-home vehicle policy, auditors noted that some logs still lack full documentation, such as the complete names of event hosts.
The Road to Reform: Recommendations for Management
DiNapoli has issued 16 specific recommendations to stabilize WROTB’s financial footing. Key directives include:
- Implementing a purchase order system to prevent spending beyond board-authorized limits.
- Conducting a rigorous review of legal and consultant contracts to determine necessity.
- Requiring itemized invoices and detailed reports for all professional services.
- Developing a strategic plan to stabilize the declining wagering handle.
- Ensuring all procurements over $15,000 receive explicit board approval before costs are incurred.
Response from WROTB Leadership
Current WROTB officials have expressed general agreement with the audit’s findings and state that corrective measures are already underway. Byron Brown, the recently appointed President and CEO of WROTB, emphasized a commitment to a new era of transparency.
“Since January of 2025, my management staff and I have worked closely with our Board of Directors to implement prior recommendations of the Office of the New York State Comptroller and initiate additional necessary reforms,” Brown said in a statement. “With WROTBC’s reforms and new policies and procedures, Batavia Downs experienced a record year financially in 2025 with the highest distributions to our 17 member municipalities in the history of the Corporation. We will work with the State Comptroller’s office to develop a corrective action plan and execute their recommendations in order to operate even more efficiently.”
As Western New York continues to monitor the fiscal health of its regional institutions, the Lake Erie Times will remain on the front lines, providing updates on whether these promised reforms lead to lasting accountability for local taxpayers.
Disclaimer: The content provided by Lake Erie Times is for informational purposes only and should not be considered as professional legal or financial advice.
