New York Assembly wraps up 2023 session with Seneca Nation gaming compact renewal still unresolved

The New York State Assembly is wrapping up its 2023 session, but a special session could loom as the complex situation surrounding the Seneca Nation gaming compact renewal remains unresolved. Lawmakers will not finalize the authorization of the new compact, whose language was approved by the state Senate earlier this month.

The updated compact was shelved amid concerns from Rochester-area lawmakers over a potential casino to be built by the Senecas in their area as part of the new deal, reports Spectrum News. Located in close proximity to the existing Del Lago Casino and Resort, lawmakers worry the potential venue could lose to a potential loss of union jobs. 

The current compact between the Senecas and the state is due to expire in early December. The compact could potentially be extended if agreed to by both the Seneca Nation and the state, said Assemblyman Harry Bronson, as per the cited source. 

"If it can be extended, there's not an absolute necessity for us to come back in the fall," Bronson said. "However, I think it's in the state's interest and the Senecas' interest to get this resolved."

Bronson said he's willing to come back if a revised proposal has stipulations, including specifically ruling out a casino in the greater Rochester area. For the assemblyman, such a move would ensure the gambling market in the region isn't saturated. 

"In order for this to move forward, the Legislature must know what's in the compact," Bronson said. "My preference is those items are statutorily addressed instead of doing a pre-authorization to negotiate an amendment and extender without us having any idea of what's in there."

Earlier in the week, New York Assembly Speaker Carl Heastie had also said he would not be moving forward at this time with a vote on the bill, citing concerns from the delegation in Monroe County.

I believe the Seneca Nation deserves a fair deal. However the sentiment of the Assembly’s Monroe County delegation — coupled with the potential loss of union jobs — is concerning, and we cannot move forward with a vote on the compact at this time.

— Carl E. Heastie (@CarlHeastie) June 16, 2023

Two weeks ago, the Seneca Nation announced it reached an agreement in principle with the state on a new 20-year gaming compact. Seneca President Rickey Armstrong responded strongly to Heastie's tweet a few days later, issuing a statement, directly criticizing Governor Kathy Hochul.

Armstrong said they met with Rochester leaders who were frustrated at not being told about any plans to site a future casino in Monroe County and promised to work with them to find a suitable location. Lawmakers said they were told by the executive's office they were left out of discussions because of non-disclosure agreements but the Seneca president said no such agreements exist, as reported by Spectrum News. 

The Seneca President said the lack of communication falls squarely on the governor and also criticized her willingness to let the deal "die on the vine." Hochul has said very little about the deal after recusing herself and assigning two top aides to negotiate because her husband works for Seneca Gaming competitor Delaware North.

Armstrong's statement argued Delaware North's interests are still being served though and pointed out Finger Lakes Gaming, run by the company, was one of the organizations leading the opposition to a Rochester casino last week.

President Rickey Armstrong, Sr.

The Nation signed its current compact agreement with New York State in August 2002. Since then, the Seneca Nation has invested nearly $2 billion to build, develop and operate its three casinos in Western New York – Seneca Niagara Resort & Casino in Niagara Falls (opened 2002), Seneca Allegany Resort & Casino in Salamanca (opened 2004), and Seneca Buffalo Creek Casino in downtown Buffalo (opened 2007).

Between its casino facilities, other business enterprises, and its government operations, the Nation is responsible for more than 5,000 direct jobs, more than $300 million in annual wages, and nearly $600 million in annual spending with vendors and suppliers, notes Indian Gaming. The Nation has an annual economic impact of more than $1.1 billion on the Western New York economy.

Under the current compact, the Senecas give the state 25% of the casino slot machine revenue. Part of that money is disbursed by the state to Buffalo, Niagara Falls, and Salamanca, the three cities where the casinos are located.

The Buffalo News reported that under the proposed new framework agreement the percentage would drop to 9.75% in the first year before rising to 19.5% for the remainder. Those percentages were negotiated with the inclusion of potential added revenue from a Rochester casino though and also may be a consideration even in a short-term extension of the compact.