IRVING, N.Y. -- Until further notice, March 31st will be the last day that New York State receives any Seneca Casino money.
Since 2002, the Seneca Nation has been paying the state and local communities that host their casinos 25 percent of all slot machine revenue, but the president of the Seneca Nation, Todd Gates, says with the nation is no longer obligated to pay the state any of that money, due to an ambiguous clause in the compact the two groups signed.
"Per the plain language of the compact, the revenue share contribution exists for 14 years. This is not new,” said Gates.
In regards to state contributions, the compact doesn't address payments after year 14. Last December, it was renewed for six more years, without objection from either party, and without including any language about further payments.
Gov. Andrew Cuomo's office released a statement about the issue Thursday morning, saying:
"Under the terms of the compact, as well as the 2013 Memorandum of Understanding with the Seneca Nation, it’s clear this payment structure remains in place. 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.”
Gates, though, is standing his ground.
"The 2013 MOU reached an agreement with the state for their violations of the compact, it did not change the underlying terms of the compact, which is clearly in plain language that the revenue share was for 14 years,” said Gates.
As far as the cities of Niagara Falls, Salamanca and Buffalo, which play host to Seneca Nation casinos, Gates says they'll continue to receive that slot machine revenue; though due to recent declines in profit, he says the overall amount will likely be less than before.
"The revenues have been declining, steadily for the last couple of years due to the shrinking gaming market. They keep putting new casinos around the state or in the region and our revenues are going down,” said Gates.
It's much-needed money for cities like Salamanca, which receives nearly $6 million in casino payments annually. Salamanca Mayor Michael Smith says it's something the city depends on and right now it's a wait-and-see game.
"We urge the state and the nation to solve their issues and work it out. From our end, whatever that works out is the hand that we're dealt and we'll deal with it,” said Smith.
Niagara Falls Mayor Paul Dyster echoes the governor's sentiment that annual payments should continue. He called assertions to the contrary, "categorically incorrect." Dyster says his administration is ready to help all parties involved find a solution.
In the end, Gates says the Seneca Nation is willing to work toward possibly renegotiating the compact with the state.