The President-Elect of the Seneca Nation has made it clear that he wants to eliminate the revenue-sharing agreement that is currently part of the gaming compact between the United States government, the state of New York, and the Seneca Nation. That position is one that New York is unlikely to accept, signaling that the two main parties are still far apart on the negotiations of a new compact.
Negotiations between the Seneca Nation and New York Gov. Kathy Hochul have been ongoing since December 2023. The amount of gaming revenue that the Seneca Nation remits to New York from its three casinos has been a point of contention.
Recent comments from the incoming president of the Seneca Nation, J.C. Seneca, could put more pressure on Hochul to get a deal done. Ongoing extensions of the current relationship could counteract that pressure, though.
Seneca states position on revenue share
Pres.-Elect Seneca made his view on the subject of a revenue share with New York in a new compact quite clear. According to Ryan Whalen of Spectrum News 1, Seneca is having exactly none of it.
“My position is, I’m a zero percent guy and I don’t think the state deserves any revenue from our nation. But again, as president, I have to look at what our people want.”
Seneca committed to holding meetings to gather opinions on the compact negotiations. HIs position represents quite a deviation from the status quo.
Revenue-share reduction is hot-button issue
Seneca’s wishes are likely a stark contrast to what Hochul would like to see in a new compact. The current agreement mandates that the Seneca Nation pay New York 25% of the adjusted revenue from slot play each year.
Hochul could be as adamant about sticking as close as possible to that number as Seneca is about trimming it. While there are probably other issues that the sides need to iron out, like the length of time a new compact would cover, the money going from the Seneca Nation to New York could be the most pivotal to a compromise.
With the technical expiration of the current agreement nearly a year in the past, patience might be wearing thin on all sides. Whether that means greater amenability to a compromise is uncertain, however.
Pressure building for a resolution
As the calendar approaches 2025, there is going to be pressure on Hochul to present the New York legislature with a prospective agreement. The legislature must approve any gaming compact, and the Seneca Nation’s voters must also ratify it in a referendum.
Members of the legislature have already made public comments pressing Hochul to expedite the process. A timely agreement could aid Hochul in other ways besides silencing those critics.
For example, Hochul has to submit a budget for the state for 2025 to the legislature in the first weeks of the year. Doing so would be easier if she had a better idea of exactly how much revenue to expect from the Seneca Nation’s gaming operations.
Hochul could simply budget for continuances of the 25% agreement, but that would further prioritize a new compact coming in as close to that number as possible. If Seneca gets broad support from his constituents for a far lower rate, the stalemate could continue.
His comments suggest that the compact negotiations could come down to which party blinks first. Delays don’t necessarily benefit his cause any more than Hochul’s.
Time may be on New York’s side
The current New York-Seneca Nation compact may be able to be extended in perpetuity, and each extension might make a change more desirable for the Seneca Nation. At this juncture, the most feasible route to a reduction in that 25% revenue share is a new compact replacing the existing agreement.
The Seneca Nation has already tried challenging the payments to the state tenets of the compact in court and that effort failed. Without unforeseeable interventions, the Seneca Nation has to keep making those payments as negotiations continue.
Seneca’s words in the public sphere and what he’s willing to accept to get a deal done could represent drastically different numbers. Going off Seneca’s words alone, though, there could still be a wide gulf between the parties.
