New York Faces Pressure to Finalize Gaming Compact with Seneca Nation

24.06.2024

New York Governor Kathy Hochul’s delay in negotiating a new gaming compact with the Seneca Nation of Indians has drawn criticism from Assemblyman Joseph Giglio.

Despite the compact’s significance to the Western New York economy, it appears to be a low priority for state lawmakers. Consequently, the Assembly and Senate failed to finalize a new deal before the legislative session ended.

Importance of the Compact

The current compact, originally negotiated in 2002, was set to expire in December 2023. However, due to the lack of a new agreement, the state has entered its third three-month extension with the Seneca Nation.

Assemblyman Giglio emphasized the urgent need for a new compact, highlighting that the tribal casinos contribute approximately $1 billion annually to Western New York and are major employers in the region.

The Seneca Nation’s casinos employ around 6,000 people, many of whom are non-native. Giglio and Ricky Armstrong, President of the Seneca Nation, both stressed the importance of negotiating a fair and mutually beneficial agreement. Armstrong described the negotiation process as “painstaking, frustrating, and disappointing,” but remains committed to achieving a new deal.

Call for Action

Assemblyman Giglio urged Governor Hochul and her administration to prioritize the compact negotiations. He hopes that lawmakers will convene for an extraordinary legislative session this summer to finalize the agreement. Giglio stressed the need for a new compact that reflects the current market context, given that New York has since allowed commercial gaming, impacting the tribal sector.

Under the original compact, the Seneca Nation had exclusive rights to offer gambling, provided they shared 25% of slot revenue with the state. However, the expansion of commercial gaming in New York has changed the landscape, necessitating a new agreement that addresses the current economic realities.