The back-and-forth between the State of New York and the Seneca Nation of Indians over its Casino Gaming Compact has gone on long enough, says State Senator George Borrello. He sees an urgent need to remove the economic uncertainty surrounding the deal that expired more than a year ago, though it has had many temporary extensions since then.
A compact between the state and the tribe that outlined the terms of taxes and fees paid for gambling activity expired in January of 2024. The sides have renewed the expired terms in a series of three-term deals, but the finances of a future arrangement are murky.
The state has continued to make payments to regions where prior revenue sharing payments were made by the Seneca. But those payments are allegedly not being divvied up in the same manner as previously. That is a concern, according to Sen. Borrello.
The tribe has reportedly set aside 25% of its net profit from slot machine play in an escrow account, for the purposes of paying an increased bounty to the state. While that occurs, the state is not receiving its revenue share from activity at the three casinos. Sen. Borrello is urging the legislature to halt extensions, forcing the two sides to come to a renewed compact.
State stepping up while revenue payments sit in escrow
While New York awaits a deal with the Seneca to replaced the expired compact, the state is paying revenue share dollars to municipalities out of pocket. Unfortunately, those payments are apparently lower than what was previously distributed. Many counties and local communities receive revenue sharing dollars from a share the Seneca pays under terms of the old compact. For some communities, those funds are important for programs.
Borrello fears the economic uncertainty of continued extensions will harm communities that need the dollars that come from Seneca’s revenue sharing payments.
Seneca Nation of Indians owns and operates three New York casinos: Seneca Buffalo Creek Casino, Seneca Allegany Casino in Salamanca, and Seneca Niagara Casino. It also operates dozens of bingo and video slots locations under its subsidiary Seneca Gaming and Entertainment.
Worries that new deal will be worse than old compact
According to Borrello, a Republican from Sunset Bay, a new agreement will likely be less beneficial to the state and decrease revenue share dollars. For that reason, and the fact that the state budget will be due soon, Borrello wants the tribe to stop making escrow payments and halt extensions of the compact. That action could force Gov. Kathy Hochul, a Democrat, to the bargaining table.
Borrello told Spectrum News 1:
“At this point it’s my recommendation to the Seneca Nation to simply stop payments, to no longer agree to this extension. I think it’s the only way you’re going to bring the governor to the table in any kind of meaningful way to actually negotiate a good and fair compact.”
To reach an agreement, the governor’s office would need to form a negotiating team, and the state legislature would need to approve a new compact. On the Seneca side, a mere majority must approve a new compact via a referendum vote.
