Senecas Split with NY Developer

The Seneca Indians of New York State have terminated their contract with Rochester developer David Flaum, who was to have partnered with them to develop a casino in Monroe County. The Indians now operate three gaming halls in the western part of the state.

Flaum involved in two of the state’s 16 casino bids

The Seneca Nation of Indians, with three casinos in western New York State, has cut ties with Rochester developer David Flaum, who was to have worked with them to develop a fourth casino in Henrietta, Monroe County.

Residents and local officials in the community rejected the plan, which would have required the Indians to renegotiate their compact with the state. That agreement limits the nation’s casinos to three; they already own and operate casinos in Niagara Falls, Buffalo and Salamanca.

The agreement between the tribe and Flaum led to an ethics complaint last February by Western Regional Off-Track Betting, which opposed a Monroe County casino and charged that the contract violated lobbying laws, according to the Rochester Democrat and Chronicle.

The OTB accused Flaum of acting as an unregistered lobbyist so he could collect a “success fee” of up to $5 million if a new gaming compact was approved within a proscribed timeframe.

Flaum is the developer for two of 16 casino projects now proposed for upstate New York, including a Hard Rock casino in the Albany area and a Caesars casino near the Woodbury Commons outlet mall in Orange County.

Some in Monroe County suspect the Senecas will revisit the Henrietta casino proposal; the Indians bought a 32-acre parcel of land for the development. Tribal spokesman Philip Pantano did not refute that contention.

“The nation is not pursuing a casino development in Monroe County at this time,” Pantano said. “That stance has not changed.”