New York's Seneca Tribe Seeks Lower Revenue Sharing Payments In New CompactLocal Lawmakers Argue Against Reductions, Claiming Infrastructure Relies On The Funds |
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Negotiations on state gaming compact between the Seneca tribe and lawmakers appear to have stalled as the tribe is seeking lower payments to the state of New York.
The tribe operates three casinos in upstate New York and the Senecas’ compact with the state expired at the end of 2023. Negotiations have dragged on and some legislators recently noted that has led to concerns about some essential services and community projects in the Niagara Falls area that are reliant on gaining funds.
“I think it is important that we make sure this is top of mind and that we get something done,” Sen. Minority Leader Rob Ortt recently noted in a news conference. “That doesn’t mean you can’t adjust. I think everyone up here, they would take something over nothing.”
State Has Local Revenue Concerns
Along with Assemblyman Angelo Morinello, the two Republican legislators argued that a new revenue agreement needs to be approved soon. They pointed to services and projects like a local hospital, school district, housing authority health center, and others that are reliant on those funds.
The gaming compact sent 25% of slot machine revenue to the state, which in turn sent a percentage of those to local municipalities, including Niagara Falls, Buffalo, and Salamanca. However, the tribe wants to reduce that percentage as part of the new compact.
According to reports, those negotiations have stalled.
The revenue sharing proposal is known as 99-H and the legislation has already been approved in the state senate and awaits assembly approval. The plan has Niagara Falls keeping 80% of its annual share of casino revenue when a new compact is finalized. Funds would be expanded for more uses under the plan including to enhance economic development, support neighborhood revitalization, public health and safety, and infrastructure improvement.
Niagara Falls received $7.6 million from the state in 2024 as an advance of casino revenue the city would have received under the previous compact. Niagara Falls Mayor Robert Restaino said the city relies on the funds for general expenditures and is reluctant to discuss changes to revenue sharing.
“The money that we receive already has a destination,” Restaino told the Lockport Union-Sun and Journal. “Until we can completely wean off of casino funds in the general fund, that’s got to be entered into the conversation too.”
The tribe’s revenue reduction request comes as New York moves closer to adding three downstate casinos, which should add a large chunk to the state’s total tax revenue.
Groups in the hunt for the downstate licenses have been releasing their plans recently. There is a proposal for a resort near the United Nations, in the Bronx, and next to Citi Field.
New York legalized sports betting in 2022, but hasn’t passed online casino legislation yet. Sen. Joseph Addabbo, a pro-gambling advocate in the legislature, hinted that this could come once the land-based casinos are finalized.
Guaranteeing the Seneca Tribe an online casino license could be an easy negotiating tactic for local politicians.
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