BUFFALO, N.Y. — The terms of the current gaming compact between the Seneca Nation and New York state appear to be heading toward another three-month extension and there are signs negotiations could go on even longer.
The compact expired last year but both sides agreed to extend it automatically each quarter as long as they continue to negotiate in good faith. The next soft deadline is June 30, and with the current legislative session ending and no new deal in place to approve, that extension seems likely.
State Sen. George Borrello, R-Sunset Bay, said, based on his conversations with the Senecas, the sides are still far apart.
"There were terms that were agreed to that were pulled back last-minute by the governor and I just don't see that there's any real progress," he said.
Seneca President Rickey Armstrong said the Nation hopes the state will commit to accelerating negotiations now that the "distraction" of the budget season and session have passed.
"The pace and progress of the process so far, while detailed and deliberate, has been painstaking, frustrating and disappointing at times. Regardless, we will continue to focus on and work toward a fair new Compact that adequately addresses our rights and concerns in the context of today's growing and changing gaming market," Armstrong said.
The governor's office said the extension both sides agreed to in December was a significant show of good faith toward negotiating a long-term resolution.
"Our administration is working with the Seneca Nation of Indians to make sure we have an agreement that is fair, serves the interests of all parties, and addresses the needs of key stakeholders and we look forward to continuing to work toward an agreement," a spokesperson said.
Borrello said it's extremely unlikely the state would have time to share new terms with stakeholders and lawmakers in time for a vote either in an extended session or be called back before the end of June. He pointed out many lawmakers have primaries this month.
The Republican lawmaker believes the automatic extensions have incentivized the governor's office to move slowly. The Senecas currently pay the state 25% of their net slot machine revenue, which has been roughly $100 million annually, as part of a gambling exclusivity deal.
With other potential revenue raisers like New York City congestion pricing falling short, he said it makes the Seneca money even more important. Borrello said New York is unlikely to get the same deal this time around.
"They have to understand the reality that this 25% VLT payout is not practical going forward, largely because of how New York state has saturated the gaming market and really diluted the value of any kind of exclusivity that the Seneca Nation has," Borrello said.
The senator said another issue is the state is currently putting the payments it’s receiving from the Senecas in escrow and not making previously agreed upon payments to the three casino host cities, Buffalo, Niagara Falls and Salamanca. He said that could leave holes in those city's budgets.
A spokesperson for the City of Buffalo said it has not received any payments for this calendar year and is owed $5.5 million. It has budgeted for a projected $11 million from the agreement in the current fiscal year.
"The compact is between New York state government and the Seneca Nation. That does not absolve the state government of its obligation to pay the municipalities," Borrello said.
Beyond the June deadline, the current terms could automatically extend through the rest of the year or longer if state lawmakers do not return for a special or extraordinary session.