a
TheNew dork Times
Despite Hochul’s Vow, Her Policies
Have Indirectly Aided Husband’s Firm
Although Gov. Kathy Hochul says she has taken no role in
matters directly affecting Delaware North, the company stood to
benefit from her administration's decisions.
onmene
yy Root
‘The day before she was sworn into office, Gov. Kathy Hoch of
New York signed an unusual recusal policy forbidding her from
using her position to help Delaware North, a global giant in
‘entertainment and hospitality services,
‘The privately held company — which owns or manages 11
‘gambling venues and numerous hotels, and handles concessions at
scores of stadiums, airports and parks — employs Ms. Hochul's
husband, William Hochul, as its senior vice president and top
lawyer
‘Yet Ms. Hochul’s recusal, and an even more sweeping addendum.
she signed two months later, hasnt stopped the governor from
taking actions that could benefit Delaware North or hurt its
competitors, especially near Buffalo, the governor's hometown,
"There is no evidence that Ms. Hochul has used her influence with
the intent tohelp Delaware North. But in three recent cases
involving matters relating to gambling or concessions, the state
took actions that aligned with the interests of her husband's
‘company.
Seven months after Ms. Hochul became governor, she said it was
time for the state to play “hartball” with the Seneca Nation of
Indians, Delaware North's biggest competitor in the Buffalo
‘gambling market. The state froze the Senecas’ bank accounts to
force the tribe to turn over $564 milion in gambling revenue —
‘money that had been in dispute for four years.
‘She then directed $418 million of that money toward the financing
‘ofa new home forthe Buffalo Bills. The move drew questions over
‘whether the governor should be subsidizing a football stadium for
the team’ billionaire owners, especially since the Bills have a more
than threedecade relationship with Delaware North, as their
concessionaire. (The team has since announced that it has chosen
Legends Hospitality to run its concessions starting in 2026.)
‘Then last month, Ms. Hochul agreed to an Iith-hour provision to
the state's budget deal calling for restructuring the quasi
‘government board overseeing the lucrative Batavia Downs
Gaming & Hotel in western New York, another direct Delaware
North competitor. The restructuring could make it easier for
Delaware North to attempt to acquire Batavia Downs, which sits
‘between two Delaware North gambling facilities.
Now, as the 2023 legislative session comes to a close next month,
Ms. Hochul's handling of matters that may benefit Delaware North
‘will again be under scrutiny.
At issue isa renewal ofthe Seneca Nation gaming compact, with
billions of dollars at stake. The Senecas and state officials must
hash out the state's cut of gambling revenue atthe Nation's three
‘casinos, and define the area in western New York where the
Senecas have exclusive casino rights —a decision that will affect
Delaware North's gambling market share in the region.
‘The governor says she is recusing herself from the matter, as is her
‘husband, whose $650,000 in compensation last year helped push
‘the Hochuls’ combined income to just under $1 million. Mr. Hochul
has signed his own recusal policy with Delaware North on matters.
‘concerning the company’s New York operations.
‘Governor Hochul has taken unprecedented steps to restore trust
ingovernment, including releasing her recusal policies, and seeks
to avoid even the appearance of conflict while executing the duties
that New Yorkers elected her to do," said Hazel Crampton-Hays, a
Hochul spokeswoman.
‘The wrangling over the Seneca-run casinos highlights how difficult
itis for Ms. Hochul to create an unimpeachable firewall between
her duties as governor and the thicket of Delaware North interests
tied to state regulation or management.
Delaware North was founded more than a century ago in Butfalo,
beginning as a peanut stand run by LM. Jacobs and his brothers,
‘and eventually expanding to stadiums and horse and dog tracks all
lover the country.
‘The family company’s growth was accompanied by some
controversy. In 1972, a Los Angeles federal court convicted the
‘company, then known as Emprise, on felony charges for conspiring
‘with known Mafia figures to conceal their ownership stakes in a
Las Vegas hotel and casino, The founder's sons, reeling from the
‘stigma of Emprise's reported ties to organized crime, eventually
reorganized their holdings under the name Delaware North,
{derived from its location atthe time on Delaware Avenue and
North Street in downtown Buffalo,
‘The company, which reported revenues of $4 billion last year,