Seneca Nation Casino Revenue
The Buffalo News reported last week that the New York’s Seneca Nation of Indians is discontinuing its payments of casino revenue to the state. The plan is to halt the casino share this week; if. DEMOCRAT & CHRONICLE: By Joseph Spector - 3/27/2018 ALBANY - The del Lago casino in the Finger Lakes is seeking a better tax deal from the state to address its struggling revenue — slightly over a year since it opened. Tom Wilmot, the principal owner of the casino, told USA TODAY Network’s Albany.
Trey Killian@treykillianNovember 14
th, 2019 - 09:00am@treykillianA federal court ruled in favor of New York against the Seneca Nation of Indians last week, saying that the tribe must pay the state at least $255 million in previously withheld casino revenue payments.
The court upheld a claim determined earlier this year by an arbitration panel that the Seneca, who stopped making payments to New York in 2017, must begin rectifying their debts to the tune of around $100 million per year.
The dispute hinged on the terms of a tribal compact signed in 2002 in which the Seneca were given exclusivity to offer gambling services to western New York. In return the tribe was to send the state 25% of all revenue generated from slot machines and video lottery machines.
The Seneca announced in March 2017 that they would stop paying the state as they believed that obligation was no longer in effect after 14 years. The state argued that the compact was supposed to automatically renew after that period for another seven years.
The $255 million figure was determined by the arbitration panel, which consisted of three members that ruled 2-1 in favor of New York.
It’s not known whether the tribe will appeal the decision by the court, but Seneca Nation of Indians President Rickey Armstrong, Sr., said in a statement that they are reviewing the matter.
“We understood the reality that the arbitration and court proceedings may not ultimately uphold the language of the Compact as written,' Armstrong said. 'Yet, it is our obligation to defend our agreements, so they are not compromised for the benefit of others. We will take the time to review today’s decision and determine how the Nation will proceed.'
Rich Azzopardi, senior advisor to Governor Andrew Cuomo, said in a statement that the court 'confirmed what we’ve said all along.
'The Seneca Nation needs to fulfill their obligations, make their neighbors and the state whole, and pay what they owe in exchange for their exclusive gaming rights,' Azzopardi said. 'It is our hope that they end this charade, stop using the courts to delay, and pay what they owe.'
Seneca Sports Betting Future Still In Question
The Seneca Nation operates three major casinos in western New York: The Seneca Buffalo Creek Casino in Buffalo, the Seneca Niagara Casino & Hotel in Niagara Falls and the Seneca Allegany Casino in Salamanca.
The dispute over the compact might help explain why the Seneca have lagged behind fellow New York tribes the Mohawk and Oneida in offering sports betting.
The Seneca have yet to establish partnerships with a sportsbook service provider while the Mohawk partnered with The Stars Group and the Oneida partnered with Caesar’s Entertainment.
As a result, the Oneida’s Turning Stone Resort Casino in Verona and Point Place Casino in Bridgeport began taking sports bets in August. The Akwensasne Mohawk Casino Resort’s sports lounge is under construction, but is scheduled to open soon.
Meanwhile, according to Spectrum News in Western New York, the Seneca have claimed that they are 'making progress' with plans to launch sports betting but are hesitant to place a strict timetable on when customers can expect it.
How, or if, the latest court decision will affect that sports betting timetable remains to be seen.
Times are profitable on a larger scale for tribal casinos in the United States, as their revenue increased by 4.1% in 2018. Having to pay back the revenue shares owed to New York will be a setback for the Seneca, but it would seem the sooner the tribe can begin offering sports betting the better.
Check out legal online gambling options available at PA Online Casinos
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sharetweetcopy linkLink copied!WRITTEN BY@treykillian<p>Trey Killian covers the gambling and casino industries in the U.S. A budding reporter, Killian is a graduate of Marquette University and writes about a range of topics, including but not limited to digital casino gaming, online poker and industry news.</p>... Read More<p>Trey Killian covers the gambling and casino industries in the U.S. A budding reporter, Killian is a graduate of Marquette University and writes about a range of topics, including but not limited to digital casino gaming, online poker and industry news.</p>... Read MoreARTICLES YOU MAY LIKE
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NIAGARA FALLS, N.Y. (WKBW) — On Tuesday, Compact Arbitrators ruled in favor of New York State when it comes to casino revenue owed by the Seneca Nation of Indians.
The two sides have been at logger-heads for more than a year. It surrounds a 2002 Compact Agreement between the Senecas and the state that only required the Senecas to pay for the first 14 years of the deal, according to the Seneca Nation.
Niagara Falls and NYS officials were disputing that interpretation of the compact and believed they were still owed a portion of casino revenue.
The Seneca Nation issued the following response in relation to Tuesday's decision.
“The Panel’s new provision rewrites the Compact in a way that harms the Nation and provides an unjustified windfall to the State,” according to dissenting Arbitration Panel member Kevin Washburn.
“We continue to believe, as anyone who has read the Compact, that the Nation’s Compact payment obligation was fulfilled, and we believe we had an obligation to the Seneca people to defend the Compact as it was written and agreed upon,” President Armstrong continued. “It is the Seneca people who voted to permit our Nation to negotiate our Compact and, like all government leaders, we must act every day in the people’s best interest. We created our gaming enterprise so that we could invest in the services that our people need, want and deserve. To that end, our casino operations have been transformational in helping the Seneca Nation serve our residents, from our youngest generations to our elders. None of that changes with this arbitration opinion.”
“While we know we are right on the law, we also knew that making that argument to an arbitration panel gave no assurance of an opinion in our favor. As is often the case, the Courts, and apparently arbitration panels, do not always decide cases on the law, even their law,” President Armstrong added. “We have prepared for this circumstance, and, now that the panel has issued its opinion, we will take the appropriate time to review and respond to the opinion, and move forward.”
Seneca Nation News
Since the Seneca Nation began its gaming operations in 2002, the Nation has sent more than $1 Billion in revenue share contributions to Albany. The Seneca Nation has also invested more than $1 Billion to develop its casino properties in Niagara Falls, Salamanca and Buffalo. Today, the Nation’s casino operations employ more than 4,000 workers, making Seneca Gaming Corporation one of the largest private employers in Western New York.
Statement from Rich Azzopardi, Senior Advisor to Governor Cuomo, Regarding Victory in Seneca Nation Arbitration:
Seneca Nation Casino Revenue Department
'We're thankful the arbitration panel held a fair hearing of the facts and ruled in favor of the state and the local communities that have been hurt by the Seneca Nation's actions. It was clear to us that the Nation had an obligation to continue payments - period. According to the Compact, this arbitration process was prescribed to resolve conflicts and now that it's concluded, we ask that the Nation to cease any further delays, make the state and local communities whole, and resume payments.'