Posted on: October 14, 2024, 09:34h.
Last updated on: October 14, 2024, 09:57h.
Seneca casino tax money being held in an escrow account since December 2023 could soon be delivered to its rightful beneficiaries.
The Seneca Nation’s Class III gaming compact with the State of New York expired on Dec. 9, 2023. The revenue-sharing arrangement has since been extended as negotiations persist between the tribe and Gov. Kathy Hochul’s (D) office.
The compact provides the tribe privileges to operate Las Vegas-style slot machines, live dealer table games, and sports betting at Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino.
In exchange for the gaming rights and casino monopoly west of State Route 14 in upstate New York, the Senecas direct 25% of their slot win to Albany. Much of that state tax benefit goes back to the cities that host the tribal resorts, namely Niagara Falls, Salamanca, and Buffalo.
Payments to Return
The Seneca Nation’s original compact was signed in 2002. The tribe stopped sending slot allocations to the state in 2016 after Seneca attorneys determined that the automatically renewed compact didn’t include a stipulation that revenue-sharing payments would be rolled over. In March 2022, the Senecas were forced to pay New York $564 million in withheld slot revenue after state courts seized the escrowed money.
Since then, Hochul, who became governor in August 2021, has been trying to reach a new compact with the powerful tribe. In June 2023, Hochul and the Senecas surprisingly announced a new 20-year compact.
After concerns were raised about the new compact allowing the tribe to further expand its operations with a fourth gaming resort in Rochester, the New York Assembly refused to sign off on the tribal terms. That sent the tribe and Hochul back to the negotiating room, with the expired compact extended in the interim and the tribe forced to place the 25% slot share into another escrow.
With the three cities relying heavily on the casino money, Hochul last week pledged to make sure Niagara Falls, Salamanca, and Buffalo get their fair share in the coming weeks. While the gaming money is protected in the escrow account, the state cannot legally access it at this time. The state government will instead provide the funding and pay itself back once the compact talks are settled.
Buffalo Needs Cash
Buffalo Mayor Byron Brown announced this month he’s departing city politics for a more lucrative role leading the Western Regional Off-Tracking Betting Corporation, a gig that will make him among the state’s highest-paid public employees with an annual salary of almost $300K. Brown leaves behind a city budget deficit estimated to be as much as $50 million.
I’m concerned about the finances. We have been very generous in supporting the City of Buffalo to get through their crisis,” Hochul said.
The Senecas continue to fight for a reduced slot tax or full elimination of the duty. The tribe says New York hasn’t upheld its end of the 2002 bargain after legalizing four upstate commercial casinos in 2013 and three downstate casinos expected to open in the approaching years.
