The Seneca Casino Compact in New York is expected to be renewed around July 1.
Officials from the Seneca Nation have been voicing their discontent with the negotiation process in obtaining a new gaming compact from New York Governor Kathy Hochul (D).
The current impasse has been ongoing since the tribe's Class III gaming compact expired in December 2022, which gave them exclusive rights to slot machines and live dealer table games in upstate New York west of State Route 14. The revenue-sharing agreement sees the tribe sending 25% of their slot machine winnings to Albany, while retaining all table game revenue.
Since January 1, 2023, the 25% slot share has been held in an escrow account as the tribe and the governor's office try to come to an agreement. However, no resolution seems near.
The Senecas are pushing for a reduced slot tax as New York authorized four upstate commercial casinos with Las Vegas-style slots and table games, plus sports betting, which they feel undercuts their exclusivity. They are also asking for the right to open a casino in the Rochester area. These demands have not been received well by city officials and state legislators who represent Rochester.
Negotiations Stagnate
It's suggested Hochul is in no hurry to sign a new Class III gaming compact with the tribe because the state would likely receive less revenue from Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino under a new arrangement. This has left tribal leaders feeling frustrated.
Seneca Nation President Rickey Armstrong commented on the situation, telling WBEN: "The pace and progress of the process so far, while detailed and deliberate, have been painstaking, frustrating, and disappointing." Despite this, the tribe remains hopeful for a "fair new compact that adequately addresses our rights and concerns in the context of today's growing and changing gaming market."
The lack of a new gaming compact is impacting local municipalities that receive funds from the casino revenue. Since the escrow account has been holding the payments, there are now financial gaps in areas that rely on the revenue. For instance, the City of Buffalo is owed $5.5 million.
State Senator George Borrello (R-Allegany) represents the small municipalities that will be affected by the stalemate: "The municipalities that rely on that funding from the compact are sitting in escrow. Those small municipalities that I represent are not getting the payouts as a result of this deadlock."
Borrello's 57th State Senate District encompasses all of Allegany, Cattaraugus, and Chautauqua counties, and parts of Livingston County in the southwesternmost upstate area.
Potential Extension
Throughout February, the most recent extension of the lapsed Class III gaming compact has been effective. Under the terms of the deal, the document must be extended if no new agreement is reached.
Any deal Hochul manages to negotiate with the tribe would need to be approved by the New York State Legislature. Although they have adjourned for 2024, Governor Hochul could potentially call a special session for the state Senate and General Assembly to ratify a gaming compact.
(Image: Evan Abrahamson/Flickr)
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