New York and the Seneca Nation remain divided over the terms of a replacement gaming compact, with the Nation describing an agreement in principle that contains no state revenue-sharing provision and Gov. Kathy Hochul saying no agreement has been reached.
The dispute puts funding for Buffalo, Niagara Falls and Salamanca in question. The three host communities rely heavily on casino-related revenue, and the removal of revenue sharing would affect payments flowing to them from the Seneca Nation’s three casinos.
J. Conrad Seneca, the Nation’s president, said the proposed framework could be finalized for submission to the Legislature next spring. He also said the framework would need approval from the Seneca Nation Council. Hochul’s office has maintained that discussions with the Nation and other stakeholders are ongoing, and that public discussion of specific terms is premature.
The differing accounts go beyond timing. The Seneca Nation has said the proposed framework would remove the exclusivity protections in the 2002 compact. Seneca said the Nation had advocated for continued funding for Buffalo, Niagara Falls and Salamanca, but that the state regarded the matter as outside the Nation’s business.
Local officials say the consequences of a lost revenue stream would be substantial. Salamanca Mayor Sandra Magiera said casino revenue accounts for 30% of her city’s operating budget and that losing it could force layoffs. She said local leaders felt caught in the middle of the negotiations.
Niagara Falls Mayor Robert Restaino estimated that the city could lose $10 million to $13 million a year, almost 10% of its roughly $100 million budget. Separate state legislation also requires the three cities to distribute some funding to community stakeholders; about $750,000 goes to the Niagara Falls City School District, which has used earlier funding to help build a multimillion-dollar athletic and recreation complex.
The expired 2002 compact required the Seneca Nation to provide New York with 25% of certain slot-machine revenue in return for exclusivity over specified gaming devices in Western New York. The compact expired in December 2023, following years of disagreement over video lottery terminals placed at horse tracks in Hamburg, Batavia and the Finger Lakes. The Nation argued that the terminals breached its promised gaming protections, while the state said they were part of the lottery system. The disagreement produced court cases and arbitration proceedings.
A federally approved extension agreement has kept the prior compact in force through automatic three-month renewals after March 31, 2024, while the parties negotiate. Under that agreement, the Nation’s existing revenue-sharing contributions continue to be placed in escrow. The funds are to be distributed under a new or amended compact, a separate agreement, or the compact’s dispute-resolution process.
Seneca said the Nation was willing to discuss a fair revenue-share agreement, but that New York was unwilling to provide market protections or opportunities to grow revenue. Any new compact would require approval from the New York State Legislature before it took effect.
