NY Gov. Hochul Approves Seneca Tribal Compact Extension

The Seneca Nation, located in Western New York, has received a temporary extension of its compact agreement with the state. Under this agreement, the tribe can operate its three venues, including the Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino, until March 31, 2024. This extension ensures the continuity of their gaming operations.

Compacts between tribes and states have proven successful in various regions, including Florida, where they enabled the launch of sports gambling. Such agreements allow tribes to operate Class III gaming, which includes table games and provides a comprehensive casino experience. In New York, the compact extension has not only allowed the Seneca Nation to continue its operations but also opened up discussions about tax rates and exclusivity.

The Seneca Nation aims to maintain its exclusivity in offering table and slot games west of State Route 14, ensuring a steady flow of revenue. However, as new commercial casinos emerge near their territories, the tribe seeks a lower tax rate to remain competitive. Currently, the state of New York receives 25% of the tribe's gross gaming revenue, which amounts to approximately $100 million annually. This rate is now under scrutiny, given the changing landscape of the gambling industry.

Governor Kathy Hochul initially faced criticism due to her husband's association with Delaware North, a competitor to the Seneca Nation's gaming enterprises. However, her husband's resignation from the position has allowed the governor to address the compact extension without any conflict of interest concerns.

The extension of the Seneca Nation's compact reflects the ongoing negotiations and challenges faced by tribal gaming establishments in the rapidly evolving gambling market of New York.