Niagara County fights Seneca compact revenue pooling
Niagara Falls’ mayor warns the city could lose $11 million to $13 million a year if a new compact drops host-community provisions.
Key Takeaways
- Niagara County lawmakers in New York unanimously approved a resolution on Tuesday urging Gov. Kathy Hochul and the Legislature to protect local casino revenue-sharing as talks on a new Seneca Nation compact continue.
- The measure seeks an amendment to State Finance Law 99-h to keep Niagara Falls’ share from Seneca Niagara Resort & Casino at 25 per cent of the state’s share, and Buffalo’s percentage unchanged.
- Lead sponsor Chris McKimmie said pooling could hurt Niagara Falls and Niagara County, since Seneca Niagara earns the most of the three.
U.S.- Lawmakers in Niagara County, New York, have unanimously approved a resolution urging Kathy Hochul and state legislators to protect local casino revenue-sharing payments as negotiations over a new gaming compact with the Seneca Nation of Indians continue. The measure calls for changes to state finance law to ensure that Niagara Falls and Buffalo retain their current shares of slot machine revenue generated by the Nation’s three casinos in Western New York.
The resolution seeks an amendment to New York State Finance Law 99-h that would preserve Niagara Falls’ allocation from Seneca Niagara Resort & Casino at 25 per cent of the state’s share. It also calls for Buffalo’s percentage to remain unchanged and opposes any provision or interpretation that would allow revenue from the three casinos to be pooled before local governments’ shares are calculated.
Legislators are also asking the state to include explicit legal protections for local revenue-sharing arrangements.
Concerns over revenue pooling
Third District Legislator Chris McKimmie, a Republican representing Niagara Falls and the Town of Niagara and the resolution’s lead sponsor, said pooling revenue from all three casinos before distributing local payments could hurt future returns for Niagara Falls and Niagara County. He noted that Seneca Niagara Resort & Casino generates the most revenue among the Nation’s three casinos in the area.
“The state’s current legislation is just another way for the state to shortchange Niagara Falls and Niagara County and funnel more money away from Niagara County and into the City of Buffalo,” McKimmie said. “I believe any of the revenue generated in Niagara Falls and in Niagara County should stay in Niagara County.”
Niagara Falls Mayor Robert Restaino has warned that the city could lose between US$11m and US$13m annually if a new compact removes revenue-sharing provisions for host communities.
Frequently asked questions (FAQs)
- What is the revenue-pooling concern? Pooling revenue from all three casinos before distributing local payments could reduce Niagara Falls’ returns, because Seneca Niagara Resort & Casino generates the most, according to McKimmie.
- How much could Niagara Falls lose? Mayor Restaino warned of US$11m to US$13m annually if a new compact removes revenue-sharing for host communities.
- What share does Niagara Falls receive now? The resolution seeks to preserve its allocation from Seneca Niagara at 25% of the state’s share.
