Newly Inaugurated Seneca President Wants to End Revenue Sharing With New York State

Posted on: November 12, 2024, 06:10h. 

Last updated on: November 13, 2024, 10:23h.

Devin O'Connor @CasinoorgDevinO Read More
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JC Seneca, the aptly named president of the Seneca Nation who was sworn in to lead the powerful and influential tribe based in upstate New York on Tuesday, is being rather blunt about what he hopes to achieve in negotiating a new Class III gaming compact with the state.

Seneca Nation compact New York
JC Seneca addresses the Seneca Nation after being sworn in as president on Tuesday, Nov. 12, 2024. Seneca is committed to reaching a new 20-year Class III gaming compact with the State of New York. (Image: Seneca Nation)

The Seneca Nation’s Class III gaming compact allows the tribe to operate Las Vegas-style slot machines, live dealer table games, and sports betting at its three resorts. The compact expired on Dec. 9, 2023.

The revenue-sharing agreement requires the tribe to direct 25% of its gross slot win from Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino to the State of New York.

The tribe and state have since extended the compact’s terms each quarter past the agreement’s supposed expiration. The tax revenue is being placed into an escrow account while negotiations continue.

Seneca, who garnered almost 90% of the tribal vote on November 5, is among the tribe’s most popular members. A longtime tribal leader and council member, Seneca ran on reaching a new, more favorable gaming compact, strengthening the tribe’s financial sovereignty, and reducing ongoing problems with increases in alcohol consumption and drug addiction.

Seneca’s first item of business is likely handling the compact.

‘Zero Percent Guy’

In exchange for giving a quarter of its slot win to the state, the Seneca’s maintain the exclusive rights to casino gambling west of State Route 14. Much of the slot tax revenue goes back to the cities that host the tribal resorts, namely Niagara Falls, Salamanca, and Buffalo.

If Seneca has it his way, the slot tax will disappear.

I’m a 0% guy,” Seneca told Spectrum News. “I don’t think the state deserves any revenue from our nation.”

The tribe contends that New York failed to live up to its end of the compact bargain after authorizing upstate casinos east of State Route 14 in 2013, and allowing video lottery gaming to continue to expand at racinos both downstate and upstate.

Seneca said he would field opinions and advice from tribal officials and the Seneca Nation before resuming negotiations with New York Gov. Kathy Hochul (D).

Compact Casualty 

In June 2023, the Senecas, then under the leadership of President Rickey Armstrong, who was prohibited by tribal law from seeking a consecutive two-year presidential term, announced a 20-year gaming compact with Hochul’s administration. After word got out that the new deal included authorization for the tribe to open a fourth resort casino in upstate New York, specifically in Rochester, the state Assembly refused to sign the agreement.

Rochester city officials and state lawmakers representing the city said they were kept in the dark about a possible casino coming to the region. There was also no confirmation regarding whether the 25% slot allocation would be reduced.

Armstrong blamed Hochul and her aides for the backroom dealing.

The blame for keeping Rochester officials out of the loop lays directly at the feet of the executive,” Armstrong said, referring to Hochul. “The Nation regularly consulted our own legislative branch, and expected that the executive was doing the same.”

Hochul had recused herself during the 2023 discussions because her husband was employed by a direct competitor of the Seneca Nation at the time.

The governor was allowed to directly participate in the tribal gaming talks after her husband resigned from Delaware North in August 2023. William Hochul, a former US attorney for New York’s Western District Court, was employed as Delaware North’s senior vice president and general counsel.