Seneca Nation and New York Give Conflicting Accounts of Gaming Compact

The Seneca Nation and New York State are telling different stories about negotiations over a new gaming compact. Seneca Nation Says Deal Reached as Hochul Denies New Compact Seneca Nation President J. Conrad Seneca said last week negotiators had reached an agreement in principle. However, Gov. Kathy Hochul said on Monday that negotiations are ongoing and no deal has been reached. It leaves questions about the future of the gaming relationship between the state and the tribe. It could also impact Buffalo, Niagara Falls and Salamanca, which have received funding linked to Seneca casino operations. Under the proposed framework outlined by the Seneca Nation, New York would no longer receive revenue-sharing payments. The tribe also said the new deal would not have the same exclusivity protections as the 2002 compact. That deal required Seneca Nation to share 25% of slot-machine revenue with New York. The tribe, in exchange, was granted exclusive rights to operate certain kinds of casino gambling in Western New York. The compact expired in December 2023. Since then, the Seneca Nation has continued to place its required payments into an escrow account as negotiations have continued on a replacement agreement. Seneca Compact Dispute Puts New York Casino Funding at Risk Hochul noted that the state continues to work with the tribe, but she does not see a final agreement. New York has also continued to offer financial support to communities affected by the dispute, she said. The governor cited Buffalo, Niagara Falls and Salamanca as examples. The state intervened because the Seneca Nation stopped making payments that New York said were legally owed. Local governments could face significant financial consequences. Mayor Robert Restaino of Niagara Falls said the city could face a shortfall of about $10 million to $13 million if the casino money is gone. The potential loss is particularly acute for Niagara Falls, where the payments represent a big chunk of the city’s annual budget. The debate has political implications, too. Republican gubernatorial candidate Bruce Blakeman slammed Hochul’s handling of the negotiations on a visit to Buffalo. He said the tribe has made significant investments in western New York and created both construction and permanent jobs. The two sides have battled over gaming rights for years. One major dispute involved video lottery terminals at several racetracks in Western New York. The Seneca Nation said those machines violated the gaming protections promised in the 2002 compact. New York said the terminals were operated as part of the state lottery system and did not violate the agreement. The dispute is part of the troubled relationship between the parties and led to years of litigation and arbitration. For the moment, the competing claims leave the fate of the talks unclear. The Seneca Nation hopes its proposed framework will result in legislative consideration in 2027, while Hochul’s administration continues to characterize the process as ongoing.