Gambling revenue allocations to the communities in the vicinity of a casino venue are not something new and more often than not this is how they find the needed resources to boost their projects. Now Seneca Nation of Indians has until February 19 to provide a detailed plan for action when it comes to its gambling revenue allocations which would resume, as it was recently ruled by an arbitration panel.
The past nearly a year has been quite heated for the Native American tribe which announced at the beginning of March 2017 that it will no longer make the mandatory gambling revenue payments to the state of New York and the three communities where it oversees the operation of casino venues. It amounts to 25 percent of its gambling revenue generated through the Seneca Niagara Resort and Casino, Seneca Buffalo Creek Casino, and the Seneca Allegany Resort and Casino.
Allocations Could Resume Soon
This allocation reaches $100 million for a single year and the tribe pays a portion of it every quarter of the fiscal year. What led to the eventual halt of payments almost two years ago was the fact that according to the Native American tribe, annual payments are no longer mandatory after the 14th year of the agreement. Ever since then the communities have not seen a single dollar coming from the tribal casino operator.
This, in turn, has resulted in financial complications for the communities, as they depend on the said allocations boosting various projects within their borders. For the time being, management of the Native American tribe has not indicated it considers the opportunity of appealing the recent ruling. The weeks ahead of February 19 will see discussion on the subject and arranging the exact amount of cash each community and the state is about to bag.
Seneca Nation of Indians will also have to pinpoint the exact amount each community is going to receive, as well as the expected day of payment. It should be taken into account that the state receives 25 percent of the slot machines operation, while, in turn, the communities receive 2 percent of that payment. This is being done in order to make it fair for all parties involved in the beneficial arrangement.
Communities Already Make Projections
Estimations at the moment show that Salamanca is going to bag some $12 million from the operation on site of the Seneca Allegany Casino over the span of the past 24 months. This windfall is larger than the usual allocations and is projected to be utilized for some of the most pressing projects in the area. The last payment made by the Native American Tribe covered Q4 2016.
In the meantime, Buffalo Mayor Byron Brown stated that the community expects to bag some $17 million for the past two years. This is where the prosperous Buffalo Creek Casino is in operation with its variety of offerings. Players define it as an attractive venue which has the potential to draw a crowd.
Seneca Niagara Casino is going to boost the local community with the largest portion of cash – $20 million, as it is the most popular destination among the three ones. This is possible thanks to the thousands of tourists making their way to the famous location and deciding to try their luck. If an agreement is reached, the allocations will resume taking place on a regular basis ahead of 2023.