Kathy Hochul’s husband in conflict of interest as governor: criticism

Lt. Gov. Kathy Hochul’s upcoming rise to New York governor has put her husband’s position at gaming and hospitality giant Delaware North in the spotlight, government ethics experts calling her a conflict of interest.

Hochul is married to former Federal Attorney William Hochul, who is now General Counsel and Senior Vice President of Delaware North, based in Buffalo, NY, which owns and operates casinos across the country, manages concession stands under contract with the government at sites such as rest areas on highways. and state parks, among other operations.

In his role as governor, Hochul will be able to choose who heads the New York State Gaming Commission, which regulates the sales and acquisitions of betting facilities in the state.

Hochul will also control the New York State Thruway Authority and New York’s Office of Parks and Recreation – both of which provide big business for her husband’s employer, the Daily Beast first reported.

The impending conflict of interest must be “at the top of the list” of issues Kathy Hochul tackles in her first days in office, Richard Painter, former White House chief ethics counsel for the president, told The Post. George W. Bush.

“She has to have a challenge,” Painter told the Post. “She needs to stay out of anything that has to do with gambling. Not only her, but she should make sure that the governor’s office stays clear of any issues that might affect this business. “

He added that Hochul should delegate all potentially relevant matters to his lieutenant governor. There is no way around the fact that Hochul will have control over who is appointed to the Gaming Commission, he added.

John Kaehny, executive director of good government group Reinvent Albany, told the Beast that Delaware North has spent $ 700,000 lobbying the state since 2019, mainly trying to increase its position in the gaming market. state money.

“It is unacceptable to have her as general counsel and her as governor,” he told the newspaper. “The next governor shouldn’t get involved in enriching his spouse, it’s that simple.”

As governor, Hochul will also oversee airports and transit hubs in New York City, as well as the expansion of the state’s new plan to allow online gambling, an opportunity Delaware North has reportedly hired for at. less a powerful lobbyist in Albany.

Delaware North owns and operates Finger Lakes Gaming & Racetrack in Farmington, NY, operates Hamburg Gaming Casino, and just sold Jake’s 58 Casino on Long Island for $ 120 million.

It also provides service to the Buffalo Niagara International Airport and operates The Westin Buffalo.

The company has raked in nearly $ 50 million over the past 20 years in New York State contracts, including a $ 40 million travel seat maintenance award and more than $ 10 million for the operation of concession stands and the Niagara Falls National Park gift shop.

A Delaware North representative noted that his contract with New York State Thruway ended in July.

“With his succession as Governor of New York State, Delaware North is implementing additional restrictions on Mr. Hochul’s interaction with the company’s business activities in New York State in order to avoid even the appearance of a conflict of interest that might be claimed to exist by virtue of the governor’s private interests arising from Mr. Hochul’s employment by Delaware North, ”said Glen White, spokesperson for Delaware North.

“Effective immediately, Mr. Hochul will be excluded from any involvement in matters relating to matters conducted by Delaware North in New York State in which any official, department or agency of the State government of New York is, or could potentially be, engaged, ”White added.

Representatives for Kathy Hochul insisted to The Daily Beast that there was “already a recusal process in place” to deal with conflicts of interest, but the state executive’s office did not. not provided more information to The Post. “He is being evaluated with her new role. As governor, and that will be completed before she takes office,” a spokesperson told The Beast.

It’s unclear exactly how much Delaware North’s Hochul is paid, either in salary or as a private company stake. Published tax returns suggest he earned over $ 1 million pre-tax in the past three years.

Kaehny de Reinvent Albany also described the Hochuls as part of the “Buffalo oligarchy,” which controls almost all of the city’s political and financial affairs. Kathy Hochul was born in Buffalo and represented a district that included Buffalo in Congress.

She also served as Erie County Clerk, which includes Buffalo.

Kaehny noted that the family of Delaware North President Jeremy Jacobs, who also owns the Boston Bruins, are from the same tight-knit group of Buffalo-born leaders.

“Buffalo is singular in the concentration of power and in the way that you really have a handful of people and businesses that are totally in control,” he said, noting that a local hospital and university buildings state bear the name of Jacobs. “It’s based mainly on money, but also on political position.”