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Borrello Wants Comptroller To Review Gaming Compact

With the state Gaming Commission leading negotiations between New York and Seneca Nation on a new gaming compact, state Sen. George Borrello wants to see the state Comptroller’s Office given an opportunity to review an agreement.

A separate bill (A.7350/S.7117) was recently introduced granting Gov. Kathy Hochul the ability to begin negotiations with the Seneca Nation of Indians on a new gaming compact, but Hochul has said she will defer to the state Gaming Commission because her husband, former U.S. Attorney William Hochul, works for Delaware North, which owns two racinos that compete with the Seneca Nation’s casinos. But only Hochul can actually sign off on a contract between the state and Seneca Nation.

The acknowledged conflict of interest prompted Borrello to introduce S.7502 on Thursday. The legislation would ask Comptroller Thomas DiNapoli to review whether or not proper procedures were followed by the governor or her designee and any other parties that entered into a recusal agreement if the recusal was warranted, direct lobbying by interested parties and continued compliance with recusal agreements, whether the agreement to share revenue is equal to exclusivity value as required by federal law, and any other factors the comptroller finds relevant.

“The partnership between the Seneca Nation and New York’s Executive Branch has been strained for several years, largely over disagreements concerning revenue from Seneca casinos,” Borrello said in a news release. “Those tensions, combined with the governor’s institutional role in the process which makes full recusal difficult, underscore the importance of a full and impartial review by the state comptroller. There is too much at stake, not only for the Senecas but for the state to allow the process to be compromised by politics and conflict. This is a common-sense proposal that would improve the process and help ensure a fair outcome.”

It’s unsure if legislation authorizing Hochul to negotiate a new compact or Borrello’s bill requiring comptroller oversight will be approved by the state Legislature before the scheduled end of the legislative session on Thursday. A special session isn’t out of the question. Gov. George Pataki received authority to negotiate with the Seneca Nation during an October special session in 2001.

Gaming from the Seneca Nation’s casinos in Buffalo, Niagara Falls and Salamanca generates roughly $100 million in payments to the state. A portion of that money is then distributed by the state to host communities, counties and school districts that host the casinos. The Senecas withheld payments for five years — before turning the money over to the state in 2022 — in a protest over their interpretation of the existing gaming compact. The Seneca Nation said the compact ended in 2016 while the state, arbitration panels and courts disagreed. Payments were made in 2022 and the Seneca Nation then said it wanted to negotiate a new compact.

Nation officials haven’t been happy with the state of negotiations, hosting a rally recently.

“Despite the fact that the Seneca Nation-New York State Casino Compact is set to expire in December 2023, the state has not been bargaining in good faith and, in fact, has delayed negotiations for a number of months,” rally organizer J.C. Seneca said. “It is time that the true decision makers from the governor’s executive chamber and the state gaming commission bargain in good faith with Seneca Nation leaders to reach a fair coagreement.”

Borrello also recently called on the state to do more to show fairness to the Native American nations within its borders during a speech on the Senate floor while debating creation of an Office of Native American Affairs.

“We both share access to the Seneca Nations in our districts and I’m proud to represent the sovereign nation of the Seneca Nation,” Borrello said. “And more importantly we talk about the past and offenses against our native tribes here in New York state, but unfortunately, the past is not all that far in the past. You saw the previous administration that was actively engaged in sabotaging the Seneca Nation and others. For example, we saw a compact that was violated by the previous governor and, other such atrocities that made it more difficult for the Seneca Nation and others that provide economic support, particularly to our local governments through the compact. I really urge the governor to move forward this new compact. It’s critically important as you run into the end of this session. Part of this legislation says to develop and maintain cooperative relationships between New York state’s tribal nations, tribal organization, Native American citizens and the state. We have a long way to go to complete that. I am glad to see the legislature is stepping up to try to be a part in that, so I proudly vote aye.”

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