Seneca Nation Declares In-Principle Gaming Compact With New York, Citing Governor Hochul’s Hostility
Seneca Nation claims a new compact negotiated in principle with no revenue sharing, accusing Gov. Kathy Hochul of hostility and failing to offer market protections. Hochul’s office denies agreement, saying talks continue. Three competing VGM casinos in the exclusivity zone generated $27.4M in August.
SCCG Take — The conflicting accounts expose limits on tribal leverage once state facilities erode compact exclusivity. Resolution by spring legislative session will test whether New York concedes territory or maintains revenue flow.
The Seneca Nation of Indians announced that a new Class III gaming compact with New York has been negotiated in principle. The claimed terms eliminate future revenue sharing with the state. This follows more than three years of impasse since the prior compact expired in December 2023.
Under that agreement the tribe paid 25% of slot machine gross gaming revenue to the state and held exclusive rights to certain games in upstate New York west of State Route 14. Payments have continued into escrow since expiration. A June 2023 proposal that included a Rochester casino collapsed after local opposition and failed to secure legislative approval.
Claims of Hostility and Zero Revenue Share
Last Friday (Oct. 2), Seneca Nation President J.C. Seneca stated the deal removes the revenue share provision. “Because of Governor Hochul’s continued hostility toward the Seneca Nation and her team’s unwillingness to provide us anything of value in return for a revenue share provision, we negotiated an agreement in principle with no revenue share agreement,” Seneca said.
He added that the tribe had been willing to discuss a fair revenue share but received no market protections or growth opportunities in return. A spokesperson for New York Gov. Kathy Hochul responded that discussions remain productive yet no final agreement exists. Hochul previously said the state looks forward to continued work toward an outcome that serves all parties.
Encroachment and Revenue at Stake
Three state-regulated video gaming machine facilities operate inside the Seneca Nation’s former exclusivity zone: Hamburg Gaming, Batavia Downs Gaming, and Finger Lakes Gaming. Those sites offer nearly 3,000 machines. In August they produced $27.4 million in revenue, according to reporting by Casino.org.
The claimed compact would face a legislative vote next spring. Conflicting accounts from the parties leave the outcome uncertain and highlight the difficulty of restoring exclusivity once competing facilities are entrenched. Operators and regulators will track whether renewed talks can resolve the revenue and territory disputes before the scheduled vote.
Reporting: Casino.org News
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