Senator George Borrello has introduced a legislative proposal in New York State, aiming to grant the State Comptroller the authority to review tribal-state compacts and provide recommendations for approval or potential adjustments. This development coincides with ongoing negotiations between New York State and the Seneca Nation to replace the current gaming compact, which is set to expire on December 9.
The Proposed Legislation:
The legislation, known as S7502, is currently under consideration in the Senate Finance Committee, of which Senator Borrello is a member. Importantly, this bill does not grant the Comptroller the power to revoke approval or modify the terms of a compact but mandates a comprehensive review of such agreements.
The review process is designed to focus on four key aspects:
Ensuring that negotiations followed proper procedures.
Assessing whether any lobbying of state officials influenced the drafting of the compact.
Evaluating the extent to which the compact might compromise existing tribal gaming exclusivity agreements.
Considering any other factors deemed relevant by the Comptroller.
Rationale for the Legislation:
Senator Borrello underscored the need for this legislative change by pointing to the current negotiations between the Seneca Nation and Governor Kathy Hochul’s administration. Notably, Governor Hochul has recused herself from participating in compact negotiations due to a conflict of interest arising from her husband’s affiliation with a company in competition with the Seneca Nation. Nevertheless, she remains the sole authority with the power to approve the contract.
Senator Borrello emphasized the strain in the partnership between the Seneca Nation and New York’s Executive Branch in recent years, primarily rooted in disputes over revenue from Seneca casinos. He highlighted the importance of a thorough and impartial review by the State Comptroller to ensure a fair and unbiased outcome, particularly when there is much at stake for both the Senecas and the state.
Background on the Seneca Nation Compact:
The original Seneca Nation Compact, established in 2002, paved the way for the development of three Seneca casinos in western New York. These casinos include the Seneca Niagara Casino (2002), the Salamanca location (2004), and the Buffalo location (2007). Under the terms of the compact, the Seneca Nation paid 25% of slot and video lottery machine revenues to the state, amounting to approximately $100 million annually, with a portion directed to the host city of each casino. In return, the compact granted the Seneca Nation exclusive rights to operate Class III casinos in western New York.
The Seneca Nation has been actively advocating for a new compact to be signed before the conclusion of the state legislature’s session on June 8.
The proposed legislation, which would empower the State Comptroller to review tribal-state compacts, marks an important step in ensuring transparency and fairness in the compact negotiation process. It responds to the challenges posed by conflicts of interest and political tensions, seeking to provide a balanced outcome for both the Seneca Nation and the state of New York. As discussions continue, the legislation’s potential impact on tribal-state compacts in the state will be closely monitored.