The Seneca Nation of Indians has reportedly told the state that it will stop paying $110 million a year in revenue sharing to Albany, as agreed on in gaming compacts dating back to 2002. New York’s tribal casino industry is not happy with the competition that comes with the opening of four new casinos in the north of the state. Three of the four casinos have already opened their doors to New York’s gaming public, while the fourth is due to open sometime this year. It is this fourth casino, the Del Lago Resort and Casino in Seneca County that has the Seneca Nation of Indians particularly concerned, due to its proximity to their own facilities. The Senecas run the Seneca Niagara Casino, the Seneca Buffalo Creek Casino and the Seneca Allegheny Casino in New York.
A conflict is now brewing between the state and the tribe over the latter’s declaration that its revenue sharing with Albany can now be stopped, despite the fact that the compact is set to only expire in six years time. The tribe has not explicitly said that it is because they feel they have lost exclusivity in the area that they are stopping payment, only that they understand from the wording of the 2002 compact that they can stop revenue sharing after 14 years.
The state, of course, disagrees with the tribe’s claims and will fight hard to keep the money flowing. Since signing the compact, Albany has pocketed over $1.5 billion from the agreement.
Some analysts have now stepped in to question whether lawmakers may be more keen to allow online poker in the state of New York, now that they see that they could lose out on valuable income from the tribes. Losing $110 million a year from tribal revenue could be offset by a viable online poker industry, which, according to estimates, could bring in around $120 million in its first year of operation. New York’s commercial casinos are in agreement that online poker will not cannibalize their own facilities and would even help boost their own numbers.
“All four casinos have said they don’t have a problem with the state offering online poker—and the seven racinos are also eligible to be in partnership with organizations that handle online poker,” noted Assemblyman J. Gary Pretlow, Chairman of the Committee on Racing and Wagering who is pushing for legal and regulated online poker in the State of New York.
