2nd Casino in Niagara Falls?

February 4, 2013 Updated Feb 4, 2013 at 10:07 PM EDT

By Ed Reilly

February 4, 2013 Updated Feb 4, 2013 at 10:07 PM EDT

NIAGARA FALLS, N.Y. (WKBW) It is still speculation, but rumors are swirling in Albany that Governor Cuomo is ready to propose a new privately operated casino for the City of Niagara Falls.

"Yes, they are considering a non-indian casino in Niagara Falls. I have not heard that it is a definite," said Assemblyman John Cerretto.

"The Governor is exhausted like everyone else at the lack of payment of the local share and the State share of casino revenue money. I personally think the Governor is serious," added New York State Senator George Maziarz.

While there was no comment from the Governor's office, it appears the idea is stemming from frustration over the on-going dispute with the Seneca Nation of Indians.

Since 2009, the Seneca's have been putting required revenue payments into escrow because they claim New York State has violated the 2002 gaming compact.

The amount now totals close to $500-million dollars.

Under the terms of the gaming compact, the Seneca's were promised an exclusive gaming zone in the Western Part of New York State.

But when New York allowed gaming machines at three racetracks within the exclusivity zone, the Seneca Nation stopped making the payments.

The matter is now in arbitration.

A spokesperson for the Seneca Nation says they have been ordered by the arbitrator to not comment about the situation.

As to whether Governor Cuomo will formally move to propose the 2nd Niagara Falls casino: "The rumor around Albany is that he will throw this amendment out with Niagara Falls as one of the areas for a casino. So stay tuned and see what happens next," added Assemblyman Cerretto.