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Seneca Nation and New York State agree to short-term extension of gaming compact

“I think the revenue sharing should go away”
Posted at 6:15 PM, Dec 01, 2023
and last updated 2023-12-01 18:25:33-05

IRVING, NY (WKBW) — The Seneca Nation of Indians announced it has reached an agreement with New York State on a short-term extension of the current gaming compact.

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The current compact was set to expire on December 9. The extension runs through March 31, 2024, and the state said it will automatically renew unless one of the parties decides not to renew it or a new gaming compact is agreed upon.

The Nation and state said they have also agreed to continue negotiations on a new compact.

“Over the last several weeks, our discussions with New York State, including face-to-face meetings with Governor Hochul, have centered, in part, on the potential extension of our current Compact, especially as the December 9 expiration gets ever closer. As a result of those discussions between our governments, the Seneca Nation and New York State have agreed to a short-term extension of our current Compact. As important, we have agreed to continue negotiations on a new Compact.

This short-term extension will provide additional time for our governments to complete Compact negotiations and to seek all necessary approvals in accordance with Seneca Nation, New York State, and federal law. Under the extension, our three gaming properties will continue to operate without interruption, alleviating any concerns about potential impacts for our thousands of casino employees, which was a priority for the Nation.

In our discussions, Governor Hochul has expressed a desire to reset the relationship between our governments. No issue is of greater importance to the economies of Western New York and the Seneca Nation than a fair Compact. Tens of thousands of individuals, families and businesses across Western New York are depending on an agreement that secures the significant jobs, business opportunities, and economic benefits the Seneca Nation delivers to the Western New York economy.

The short-term extension of our Compact is an important step, but even more important work remains to be done. The Seneca Nation remains committed to negotiating honestly and directly with New York State on a Compact that provides a fair and equitable economic and competitive environment for our gaming operations and the many people who depend on them.”
- Seneca Nation President Rickey Armstrong, Sr
"Today, I returned to Buffalo to meet with President Armstrong and memorialize an extension of the current gaming compact to ensure the State and Seneca Nation can continue working towards a long-term resolution. With the signing of this agreement, there is important momentum for negotiations around the compact. I remain committed to working with President Armstrong and the Seneca Nation in finalizing an agreement that is fair to all parties, and I look forward to more conversations in the coming weeks and months as we continue to meet."
- New York Governor Kathy Hochul

But not everyone wants a new gaming compact.

7 New Senior Reporter Eileen Buckley talked to one Native American who says the Seneca Nation should no longer share revenues with the state.

“The gaming revenue is almost the sole source of public finance for the entire Seneca Nation,” remarked John Kane, radio host of Let’s Talk Native.

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John Kane, radio host of Let’s Talk Native.

The first casino gaming compact was signed 21 years ago, allowing the Seneca's to operate Class III gaming casinos in Niagara Falls, Salamanca, and downtown Buffalo.

Kane is a Mohawk, who lives and works on the Seneca nation's Cattaraugus territory.

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Casino compact revenues.

But he's against the casino compact. The state gets 25% of its gross slot revenues which generated about $2.4 billion for the state and some of the revenue is shared with Buffalo, Niagara Falls, and Salamanca.

“What would you like to see change?” Buckley asked. “I think the revenue sharing should go away. I mean, for one thing, revenue sharing was supposed to be based on a protection of the Seneca Nation's gaming market. That's what it was. I was supposed to be an exclusivity for gaming,” Kane replied.

Kane tells me the Seneca’s should be able to keep all the casino cash to help pay for services that support its nearly 8,000 members living on the territory, many of whom struggle financially, with about 30% living below the poverty line.

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Along the Seneca Nation Territory.

“And while they are provided services and they do get a monthly, annual check of about $700; it still doesn't lift them out or over or much over that poverty line,” remarked Kane. “I think there's this misconception that the Seneca’s are all wealthy and that, you know, all this gob of money that they're raking in the casino, yes, the state is justified in taking half of it and I think that that myth has to be busted. With $2.4 billion, you stretch that over 21 years. That's not that much money to operate the Seneca Nation I mean all the services, all the buildings, new building reconstruction, maintenance, seniors, senior services, including senior housing, the clinic in the wellness center, the early child learning center.”

7 News reached Republican State Senator George Borrello whose district includes Cattaraugus and Allegany, territories of the Seneca’s, prior to the announced short-term extension.

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Republican State Senator George Borrello.

“It's my personal opinion that they are under no legal obligation to have to pay anything if this compact expires, so it behooves the governor to have some kind of an extension. No one from the state or federal government is going to be able to come in and shut down their operations,” explained Borrello.

Borrello tells me he wants the state to offer the same or more revenues to municipalities under a future deal.

“New York State has changed the gambling landscape with its new gambling revenue sources, so really, in my opinion, they have undermined and saturated the market, which has had a negative impact on the Seneca Nation. Whether or not the negotiated rate in the new compact is the same – whatever revenue ends up tricking down to the municipalities should be at least the same if not more, because New York State is making a lot more money off gaming than it did when they first signed this compact," stated Borrello.

If and when both sides reach a deal on a new compact, it will need approval by the state legislature, and the members of the Seneca Nation, and then it would have to go off to the U.S Department of the Interior for final approval.