The Seneca Nation of Indians in upstate New York is poised for a significant political shift as the tribe prepares to elect a new president in November. The successor to President Ricky Armstrong, Sr. will inherit the critical task of navigating the ongoing and unresolved Class III gaming compact negotiations with the state.
Since the expiration of the Seneca Nation’s gaming compact in December 2022, tribal leaders, including Armstrong, have been in discussions with New York Governor Kathy Hochul’s administration to establish new revenue-sharing terms. A key issue at stake is the tribe’s effort to reduce the current 25% tax on its gross gaming revenue from slot machines paid to the state. An earlier proposal that would have allowed the Senecas to build a casino resort in Rochester fell apart due to local opposition and the cessation of compact talks in the State Assembly.
New gaming compacts negotiated by the governor must be ratified by both the New York State Senate and Assembly. After an agreement reached in June 2023 was rejected by the Assembly, both sides have repeatedly agreed to extend the expired terms while the tribe places the 25% slot revenue into an escrow account.
The Seneca Nation imposes no limit on the number of terms a president can serve but prohibits consecutive two-year terms. Armstrong’s current term, his third, will conclude in November. He previously held the office from 2002-2004 and 2018-2020 and was reelected in 2022.
This week marked a significant development as Seneca Nation Councilor J.C. Seneca announced his candidacy for president. Seneca emphasized the need for new leadership to move past the impasse in the gaming compact discussions. He pledged to address and resolve pressing issues, including the gaming revenue dispute.
“I think inserting some new energy, some new vision, and some new personality can help the situation and push it forward,” Seneca remarked regarding the ongoing deadlock.
However, Seneca’s stance on the tribe’s financial arrangements with the state may pose challenges to reaching a new compact. A prominent business figure in Western New York, Seneca owns and operates the Native Pride Travel Plaza in Irving along Interstate 90. He asserts that New York no longer merits a share of the tribe’s gaming revenues unless it offers equitable compensation.
“No state has the right or authority to receive revenue unless the Indian Nation receives just compensation for it. If we’re not getting what we believe is value from the state, then they don’t get anything,” Seneca asserted.
The annual 25% slot allocation from the Seneca Nation has been contributing approximately $100 million to the state’s coffers. There are unconfirmed reports that Armstrong is lobbying for a substantial reduction or total elimination of the slot revenue share in the new compact. This could potentially explain why Governor Hochul appears to be in no hurry to finalize a new agreement, as reduced tribal payments would impact state revenue.
New York might easily compensate for any loss in tribal gaming revenue by issuing licenses for the three downstate casinos authorized through a 2013 state constitutional amendment. Each of these licenses is expected to include a substantial one-time fee of $500 million, with the coveted licenses anticipated to be issued next year.
