No new Seneca gaming compact as session draws to a close

BUFFALO, N.Y. — The terms of the current gaming agreement between the Seneca Nation and New York State appear headed for another three-month extension and there are signs that negotiations could continue even longer.

The deal expired last year, but both sides agreed to automatically extend it each quarter as long as they continue to negotiate in good faith. The next deadline is June 30, and with the current legislative session ending and no new deals to approve, that extension seems likely.

State Sen. George Borrello, R-Sunset Bay, said based on his conversations with the Seneca, the sides are still very far apart.

“There were some conditions that were agreed to but were pulled out at the last minute by the governor and I just don’t see any real progress,” he said.

Seneca President Rickey Armstrong said the Nation hopes the state will commit to accelerating negotiations now that the “distraction” of the budget season and session has passed.

“The pace and progress of the process to date, while detailed and deliberate, has been at times laborious, frustrating and disappointing. Regardless, we will continue to focus and work toward a new Fair Deal that adequately addresses our rights and concerns in the area. context of today’s growing and evolving video game market,” Armstrong said.

The governor’s office said the extension both sides agreed to in December was a significant demonstration of good faith in negotiating a long-term resolution.

“Our administration is working with the Seneca Indian Nation to ensure that we have an agreement that is fair, serves the interests of all parties and meets the needs of key stakeholders and we look forward to continuing to work towards ‘a deal,’ he said. the spokesperson said.

Borrello said it was extremely unlikely the state would have time to share the new terms with stakeholders and lawmakers in time for a vote, either in an extended session or to be called back before the end of June . He noted that many lawmakers are holding primaries this month.

The Republican lawmaker believes the automatic extensions caused the governor’s office to move slowly. The Senecas currently pay the state 25 percent of their net slot revenue, which amounts to about $100 million a year, as part of a gaming exclusivity agreement.

While other potential revenue sources, like New York City’s congestion pricing, aren’t up to par, he said that makes the Seneca money even more important. Borrello said it’s unlikely New York will get the same deal this time around.

“They need to understand the reality that this 25% payment on VLT is not practical going forward, largely because of the way New York State has saturated the gaming market and has really diluted the value of any sort of exclusivity that the Seneca Nation has,” Borrello said. .

The senator said another problem is that the state currently escrows payments it receives from the Seneca and does not make previously agreed-upon payments to the casino’s three host cities, Buffalo, Niagara Falls and Salamanca. He said that could leave holes in those cities’ budgets.

A spokesperson for the city of Buffalo said it has not received any payments for this calendar year and is owed $5.5 million. He budgeted $11 million from the deal for the current fiscal year.

“The contract is between the New York state government and the Seneca Nation. This does not relieve the state government of its obligation to pay municipalities,” Borrello said.

Beyond the June deadline, current mandates could automatically extend through the rest of the year or longer if state lawmakers do not return for a special or extraordinary session.