A new gaming compact between New York and the Seneca Nation of Indians is nearly a done deal, according to multiple reports.
The Seneca Nation will continue operating NY casinos for another twenty years under a tentative agreement reached by the two sides, President Rickey Armstrong Jr. said Wednesday. He said some details are still being finalized, but the framework for an extension is in place.
“We celebrate the agreement in principle for what it means for our shared future,” Armstrong said during a brief press conference at the Nation’s William Seneca Building in Irving.
Fair compact contract reached simply by Seneca Country, New York
The spokesperson for NY Gov. Kathy Hochul said the new compact will be “fair” and will “serve the interests of both and benefit Western New York communities.” Hochul recused herself from the negotiations due to her husband’s employment with Delaware North, a Seneca company competitor.
The tribe operates three NY casinos: Seneca Niagara Casino & Resort, Seneca Allegany Casino, and Seneca Buffalo Creek Casino. The current gaming compact with the Nation, enacted in 2002, expires in December.
The gaming compact grants the Seneca Nation exclusive rights to offer class III gaming in the state’s Western region. In return, the Nation pays the state 25% of slot machine and video lottery terminal (VLT) revenue.
New offer came apparently out of no place
News of the compromise between the state and the Senecas has been surprising, as both parties have had a contentious relationship dating back to prior gubernatorial administrations.
In 2017, the tribe stopped making its casino revenue payments, leading to a legal dispute between the state and the tribe. Last year, Hochul was able to convince a bank to freeze the tribe’s financial assets, resulting in the Seneca Nation paying over $565 million to the state.
Recently, Armstrong and the Senecas have been actively pursuing a new gaming compact. At times, the tribe has been openly critical of Hochul’s involvement.
“Throughout the negotiations, our focus remained on reaching a fair, equitable deal that secured the future of our gaming operations, provided critical funding for our programs that serve our people, and delivered significant jobs and economic benefits in Western New York,” Armstrong said.
New small awaits authorization from Seneca citizens
The Seneca Nation citizens will need to approve the new compact through a referendum vote. The US Department of the Interior also needs to approve the deal. Finally, the state Legislature must pass legislation authorizing Hochul to enter into a new agreement.
Earlier this month, state Sen. George Borrello introduced legislation that would add another layer of oversight to tribal gaming compacts. Under the proposal, the State Comptroller’s office would review any gaming compacts and make recommendations if necessary.
The governor is ultimately responsible for granting and approving any tribal compacts. Borrello said his bill ensures the state’s impartiality throughout the process, citing Hochul’s personal and professional conflict.
“There is a lot at stake, not just for the Senecas but for the state, to allow the process to be compromised by politics and discord,” he said in a statement from his office. “It is a common-sense proposal that would improve the process and help ensure a fair outcome.”
Seneca reservations and casinos fall within Borrello’s district. The lawmaker is a member of the Senate Finance Committee, where his proposed bill, S7502, currently resides.
PlayUSA analyst Derek Helling notes that much of the authority granted to the comptroller in Borrello’s legislation already exists and suggests that the proposal may be redundant.
For their part, the tribe has been pushing for the passage of a bill that would enshrine the Nation’s casino exclusivity zone into law. Sponsored by Sen. Tim Kennedy, D-Buffalo, the bill would also allow the Nation to sue NY’s governor during stalled negotiations.
David Danzis is an author for PlayNY. He is a New Jersey native and an honors graduate of Rutgers University. He previously worked as a newspaper reporter for the New Jersey Herald and Press of Atlantic City, where he received statewide awards for his coverage of politics, government, education, sports, and business. Currently, he contributes to the growing legal gambling landscape in New York, including online gambling and the potential legalization of NY online casinos. David resides in Mays Landing with his wife and two children. When he’s not at the beach, golf course, or snowboarding, he enjoys watching his favorite New York sports teams—the Yankees, Jets, Rangers, and Knicks.