The Seneca Nation of Indians and New York State have reached a 20-year gaming compact agreement that will allow the tribe to continue operating its three casinos in western New York. The agreement was announced on August 18, 2021, and marks the end of a long-standing dispute between the two parties.
The Seneca Nation of Indians operates three casinos in western New York: Seneca Niagara Resort & Casino in Niagara Falls, Seneca Buffalo Creek Casino in Buffalo, and Seneca Allegany Resort & Casino in Salamanca. The tribe has been operating these casinos since 2002, but its gaming compact with the state expired in 2016.
The dispute between the Seneca Nation of Indians and New York State began when the tribe stopped making payments to the state from its casino revenue. The tribe argued that its compact with the state had expired and that it was no longer required to make payments. The state, however, argued that the compact had an automatic renewal clause and that the tribe was still required to make payments.
The dispute went to arbitration, and in 2019, an arbitration panel ruled in favor of the state. The panel ordered the Seneca Nation of Indians to pay the state $435 million in back payments. The tribe appealed the decision, but a federal court upheld the arbitration panel’s ruling in 2020.
Under the new gaming compact agreement, the Seneca Nation of Indians will make payments to the state based on a sliding scale. The payments will be calculated based on the net win from slot machines at the tribe’s three casinos. The payments will start at 18% for the first $30 million in net win and increase to 25% for net win over $300 million.
The new gaming compact agreement also includes provisions for revenue sharing with local governments. The Seneca Nation of Indians will share a portion of its casino revenue with the cities and towns where its casinos are located. The revenue sharing will be based on a formula that takes into account the population of the city or town and the amount of casino revenue generated.
The gaming compact agreement is a significant development for the Seneca Nation of Indians and New York State. It provides a framework for the tribe to continue operating its casinos and making payments to the state. It also provides a mechanism for revenue sharing with local governments, which will benefit the communities where the casinos are located.
Overall, the gaming compact agreement is a positive step forward for the Seneca Nation of Indians and New York State. It resolves a long-standing dispute and provides a framework for cooperation and collaboration between the two parties. It also provides a mechanism for revenue sharing with local governments, which will benefit the communities where the casinos are located.
