The lack of a permanent gaming compact between the Seneca Nation of Indians and the state of New York has hamstrung three areas in the western part of the state.
Fortunately, it appears those cities – Buffalo, Niagara Falls, and Salamanca – will be getting some financial relief from the Seneca Nation.
Since the compact expired late last year, the three cities have not benefitted from revenue sharing with the state. But as the tribe has continued to negotiate a new and permanent compact, the Seneca has since been depositing 25% of revenue from slot machines into an escrow account rather than paying it directly to the state.
As a result, Buffalo, Niagara Falls, and Salamanca will be receiving money from that account by the end of the month.
How much money will be paid to three Western NY cities
The Seneca Nation has long sought an updated gaming compact with the state of New York. Ultimately, though, neither side could come to an agreement. As such, the previous compact expired in December. The two sides bought themselves some time for extra negotiations, however, by agreeing to short-term, three-month extensions.
But with no permanent deal in place, the three cities of Buffalo, Niagara Falls, and Salamanca could not cash in on revenue sharing. Now, though, that will change.
According to the office of Gov. Kathy Hochul, the amount each city receives will be based on what estimated based on what the Seneca would have paid to the state between Dec. 10, 2023, and the end of June.
Any financial assistance is valuable for the area, particularly in Buffalo, which faces a budget gap of up to $15 million next year.
“Do we want the money? Yes, the City of Buffalo wants the money,” Leah Halton-Pope, an Ellicott District councilmember, told WGRZ 2.
“It’s critically important, and getting that negotiation worked out is something we’ve been working on for a while.”
Seneca continues to work toward new NY casino compact
For years, the Seneca has been at odds with New York State. But both sides have emphasized the importance of coming to terms on an updated gaming compact.
The problem, however, is how long the the process has taken.
It seemed they had crossed the finish line in summer 2023 when announced a 20-year deal. But as more details of the agreement came to light, it quickly fell apart.
Since then, there has not been much progress. And with a new president coming in for the Seneca, that could delay the process even further.
Assemblyman Joseph Giglio said in June that Seneca Nation Council members have noted that “every time they think they have a deal, something happens that derails the talks. A new gaming compact is vital to our regional economy across Western New York.”
He added:
“It’s time for executive branch negotiating team to come back to the table and negotiate a deal in good faith with the Seneca Nation,” Giglio told the Olean Times Herald, “for the benefit of everyone in Western New York, native and non-native.”
