Local leaders and state lawmakers in Western New York say they aren’t panicking?yet. But they are pressing Albany to fix a disagreement over competition that has prompted the powerful Seneca Indian Nation to suspend badly needed payments from the tribe’s gaming revenues.
The tribe has halted the payments as of March 31, claiming that by licensing four major new commercial casinos the state has violated the terms of their 2002 gaming compact, which grants the Senecas exclusive rights to operate three casinos?in Buffalo, Niagara Falls and Salamanca?in exchange for kicking back to the state 25 percent of slot machine revenues.
The state splits those funds with the three cities in exchange for providing municipal services to the casinos?and it’s been a substantial haul, a total of $1.4 billion over the last 14 years.
The new Seneca President Todd Gates, who was elected in November, said the tribe is willing to negotiate directly with the three cities for services but its financial obligations to New York became legally void with the expiration of the revenue-sharing provisions of the compact, which covered 14 years of the 20-year agreement.
“This is not new,” Gates said. “The language of the compact has not changed. We’re following the language of the compact as we always have.”
Gov. Andrew Cuomo’s office sees it differently, saying the compact stipulates the revenue-sharing provisions are automatically renewable.
“It’s clear this payment structure remains in place,” Cuomo spokesman Rich Azzopardi said. “If the new leadership of the nation has questions, or a different interpretation of this, they haven’t shared them with us, but we’re willing to meet and discuss any issues.”
Local officials are hoping that happens soon.
“What I take from what I heard from President Gates is that the Seneca Nation of Indians is not looking to harm the interests of the city of Niagara Falls, and if all else fails make some provisions to make us whole,” said Niagara Falls Mayor Paul Dyster. “We’re nowhere near that as we stand today.”
Dyster and state Assemblyman Angelo Morinello are urging the Senecas and state leaders to come to the table, via arbitration if necessary.
“To do it any other way is outside the four corners of the compact. That’s why I’m urging the governor and the Seneca Nation to utilize the process and move toward an expedient compromise that will benefit all parties,” Morinello said.
“I count on the Seneca Nation and the state of New York to settle their differences,” said Salamanca Mayor Michael Smith, who is a Seneca member.
Most of Salamanca is located on Seneca territory, making 73 percent of its land tax-exempt. The tribe’s annual casino payments of about $6 million account for 60 percent of the city’s budget.
“We’re not in panic mode because of this,” Smith told The Associated Press.
“(The tribe) asked us to believe that the host communities would continue to be taken care of,” he said, “and I believe that.”
