Seneca Nation Announces Gaming Compact ‘Negotiated in Principle,’ Hochul Office Denies Agreement

Seneca Nation Announces Compact Terms

On October 2, J.C. Seneca, President of the Seneca Nation of Indians, announced that a new Class III gaming compact had been “negotiated in principle.” Seneca stated that the proposed terms eliminate the revenue sharing provision that previously required the tribe to direct a portion of its gross gaming revenue to the state of New York.

The announcement follows a period of prolonged legal and political conflict between the Seneca Nation and New York State lawmakers, which began after the state authorized video gaming machines (VGMs). The tribe has maintained that the authorization of these machines violated its existing Class III gaming compact.

Disagreement Over Final Agreement

The Seneca Nation’s claim of a negotiated agreement is currently contested by the executive office of Governor Kathy Hochul. A spokesperson for the governor stated that while discussions have been productive, the administration has not agreed to a new compact. The spokesperson emphasized that no final agreement has been reached and that the legislative process remains incomplete.

“While we have engaged in productive discussions with the Seneca Nation, we were unable to reach a final agreement, and the Assembly did not pass the authorizing legislation. We look forward to continuing to work toward an agreement that works for all parties,” the governor’s office said.

Breakdown of Previous Compact

The conflict intensified after the previous Seneca gaming compact expired in December 2023. Under that expired agreement, the Seneca Nation was required to direct 25% of its slot machine gross gaming revenue to the state. In exchange for this revenue share, the tribe held exclusive rights to operate gambling games in Upstate New York west of State Route 14.

Since the expiration of the compact, the Senecas have continued to deposit 25% of their slot winnings into an escrow account. President Seneca cited the state’s unwillingness to provide market protections as a primary reason for the current standoff. “The Seneca Nation was willing to discuss a fair revenue share agreement as a part of a new compact, but New York was unwilling to provide us any market protections or opportunities to grow and generate more revenue for us and for the local community,” Seneca said.

Commercial Competition and Legislative Next Steps

The exclusivity zone currently contains three state-regulated commercial gaming facilities: Hamburg Gaming, Batavia Downs Gaming, and Finger Lakes Gaming. These three properties operate nearly 3,000 gaming machines combined. In August, these VGMs reported revenue of $27.4 million, a figure that underscores the financial stakes involved in the regulatory dispute.

President Seneca alleged that Governor Hochul’s team prioritized maintaining state revenue over providing value to the tribe. “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,” he stated.

Earlier efforts to resolve the dispute, including a deal reached in June 2023 that would have allowed the Senecas to open a casino in Rochester, collapsed after pushback from local government officials and lawmakers representing the city. The Seneca Nation now intends to put the new terms to a vote by the New York State Legislature next spring, when the body convenes.

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