New York threatens Senecas’ Niagara Falls casino monopoly

New York Gov. Andrew Cuomo is threatening to end the Seneca Nation of Indians’ casino exclusivity in Niagara Falls unless the tribe resumes revenue-sharing payments with the state.

In March, the Senecas announced that its three upstate casinos in Buffalo, Niagara Falls and Salamanca would stop remitting a 25% share of their slot machine revenue – worth approximately $125m per year to state and local governments – on April 1. The tribe argued that its gaming compact allowed it to stop making the payments once the compact’s initial 14-year term concluded at the end of 2016.

On Monday, the Buffalo News quoted a Cuomo spokesman threatening that the state would authorize a new commercial casino in Niagara Falls if the Senecas failed to resume their revenue payments to the state and to the local host communities in which the Seneca gaming venues operate. The Seneca Niagara Casino is the tribe’s most lucrative gaming venue.

This isn’t the first time Cuomo (pictured) has issued his Niagara Falls ultimatum, having made similar threats in 2013 when the parties were at loggerheads over local racetracks adding slots to their gaming mix. That impasse was eventually resolved after the state admitted it had violated the terms of the gaming compact and allowed the Senecas to keep $200m in withheld revenue sharing payments.