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Niagara Falls could lose as much as $13 million a year if revenue payments tied to the Seneca Nation’s casinos stop while compact negotiations with New York remain unresolved.
That uncertainty is landing at a difficult time for the city, with Mayor Robert Restaino preparing a budget due Nov. 1 without knowing whether the payments will continue. Restaino said the potential shortfall ranges from $11 million to $13 million, a significant gap in a city budget of around $100 million.
Conflicting messages on compact status
Gov. Kathy Hochul said on Oct. 5 that no deal is in place, stating, “Currently, there is no agreement.”
But Seneca Nation President J.C. Seneca has said the sides reached an agreement in principle that would not include revenue sharing to New York. That dispute over where talks stand has left local governments waiting for clarity on whether host-city payments will continue.
Under the previous framework, the Seneca Nation paid 25% of certain slot machine revenue to New York in exchange for casino exclusivity across part of Western New York. The state then passed portions of that money to host communities including Niagara Falls, Buffalo, and Salamanca.
The original 2002 compact expired on Dec. 31, 2023. Temporary extensions have kept casino operations running during negotiations, while revenue-sharing payments under the expired framework have been placed into escrow.
Other host cities also have money at stake
Niagara Falls is not the only municipality affected. Salamanca depends heavily on casino payments, which account for around 30% of its operating budget, according to the source report. Buffalo also receives a share of the funding.
State Senate Minority Leader Rob Ortt said he had heard there was either a deal or at least a framework for one, but then received no further update. Any final Seneca gaming compact would still need to move through required state and tribal approval processes before taking effect.
What New York readers should watch next
For now, the key dates are Niagara Falls’ Nov. 1 budget deadline and the longer compact timeline. J.C. Seneca has said he expects a final compact to reach state lawmakers in spring 2027, but Hochul’s office says no agreement currently exists. Until those questions are resolved, host-city funding in Western New York remains uncertain.
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Source: As reported by igaming.org.
