Seneca Nation, New York State agree to 'short-term' gaming compact extension

Dec. 1—A short-term extension of the gaming compact has been agreed upon by state officials and the Seneca Nation of Indians.

Seneca Nation officials said Friday's decision was made following a face-to-face meeting between Seneca Nation President Rickey Armstrong, Sr. and Gov. Kathy Hochul, along with representatives from both governments, on the current Class III Gaming Compact which is set to expire on Dec. 9.

The two governments have also agreed to continue negotiations on a new compact agreement.

Armstrong said after the meeting, "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 Dec. 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."

According to Hochul's office, the extension runs through March 31, 2024 and will automatically renew unless one of the parties decides not to renew it or a new gaming compact is agreed upon. The terms of the compact are unchanged from before.

Armstrong said it would provide additional time for the 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, the three Seneca 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.

Armstrong also said that in his discussions, Governor Hochul has expressed a desire to reset the relationship between the two 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, Armstrong said.

The current gaming compact, which provides the Seneca Nation with exclusive rights to operate Class III casinos in Western New York, including Niagara Falls, Buffalo and Salamanca, is set to expire on Dec. 9.

Under the current gaming compact, the Seneca Nation is permitted to operate three "class III gaming" facilities, which include slot machines, table games and, more recently, sports books. The casinos also offer other amenities typical of Las Vegas-style casinos.

In return for the right to exclusively operate its casinos in areas "west of State Route 14", the Seneca Nation and its gaming corporation pay, on a quarterly basis, 25% of its revenues on slot machines and other gaming devices to New York state. The state then distributes that revenue to the casino host communities of the Falls, Buffalo and Salamanca.

While all of the tribal revenue sent to Buffalo and Salamanca is spent under the control of those municipalities, the funds sent to the Falls are shared, by state law, between the city, the Niagara Frontier Transportation Authority, the Niagara Falls Board of Education, the Niagara Falls Underground Railroad Heritage Commission, the Niagara Tourism and Convention Corporation, the Niagara Falls Housing Authority, Mount Saint Mary's Neighborhood Health Center and Niagara Falls Memorial Medical Center.

Seneca officials have argued in the past that since the signing of the original compact, other gaming outlets, including so-called "racinos" in Hamburg and Batavia, cut into their exclusivity by offering video lottery terminals similar to slot machines.

The Seneca Nation announced in June that it had an "agreement in principle" with New York State for a new 20-year gaming compact but talks have continued.

Armstrong said the nation has been working on its end of the proposed agreement for about two years and that he's confident it has "covered all of our bases."

Mayor Robert Restaino said Friday he had not been briefed by the state on the specific terms of the extension.

"They have been talking about an extension to get everything right, rather than rush," Restaino said. "I'm not surprised by this."

Hochul said Friday's agreement showed that talks were moving in the right direction.

"With the signing of this agreement, there is important momentum for negotiations around the compact," the governor said. "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."