Niagara Falls Faces $13 Million Gap As Seneca Compact Talks Stall

Niagara Falls could lose as much as $13 million a year from Seneca casino revenue while New York and the Seneca Nation give conflicting accounts of their new gaming compact negotiations.

The disagreement now goes beyond whether a deal exists. Revenue sharing for Niagara Falls, Buffalo and Salamanca could also disappear under the framework described by Seneca Nation President J.C. Seneca.

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Good to Know

• Gov. Kathy Hochul said October 5 that no compact agreement currently exists.
• J.C. Seneca says negotiators reached an agreement in principle without revenue sharing.
• Niagara Falls receives around $11 million to $13 million a year from casino payments.

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Niagara Falls Budget Faces Immediate Question

Niagara Falls Mayor Robert Restaino is preparing a city budget due November 1 without knowing whether casino revenue will continue.

“If you think about the fact that the city’s budget is a little more than $100 million, and if you think about the fact that we have an amount in the budget that is almost 10 percent — not 10 percent but almost — you’re thinking about a substantial gap to fill.”

Restaino said the possible loss ranges from $11 million to $13 million. Salamanca also depends heavily on casino payments, which account for around 30 percent of its operating budget.

The uncertainty comes from sharply different descriptions of negotiations.

J.C. Seneca said the two sides had reached an agreement in principle without revenue sharing to New York. He expects a final compact to reach state lawmakers in spring 2027.

New York rejects that characterization. Hochul said on Monday: “Currently, there is no agreement.” Her office previously described talks as productive but ongoing.

Seneca also said New York rejected continued payments for the three host cities. Under the old compact, the Seneca Nation paid 25 percent of certain slot machine revenue to New York in return for casino exclusivity across part of Western New York. The state then passed portions of those payments to local governments.

The original 2002 compact expired on December 31, 2023. Temporary extensions have kept casino operations running during negotiations, while revenue sharing payments under the expired framework have been placed into escrow.

State Senate Minority Leader Rob Ortt has also questioned the mixed messages.

“I know for a fact the Governor’s Office called certain elected leaders — myself not a part of that — last month to tell them that there was a deal, or at least the framework of a deal. But then I heard nothing after that.”

He later added: “The whole point of the compact was exclusivity and a payment, so if there’s no exclusivity and no payment, that sounds to me like there’s an agreement that we’re not going to have an agreement.”

Any new Seneca gaming compact still needs approval through the required state and tribal processes before taking effect.

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