Casino News

Niagara Falls Bags US$5M Slice of State Cash amid Tribal Casino Money Debate

Casino support is essential for every host community, as it is an additional boost that could be needed for its progressive development or could fund local projects. Niagara Falls, New York received the first US$5-million financial support coming not from a casino venue, but instead from the government ready to support it in this time of need.

The reason is that the Seneca Nation of Indians are set in their ways and refuse to pay gaming revenue allocations reaching US$255,877,747.44. Gaming revenue allocations are a guaranteed source of funds for any community hosting a casino facility and they are a way for it to compensate the locals.

Gaming revenue generated by the casino venue fuels an allocation amounting to some percentage that goes straight to the city coffers. This is where local officials have the freedom to reinvest the casino cash as they deem most appropriate.

Casino Allocations Reach Millions of American Dollars

This could spell roadworks, beautification works, improvement of parks and recreation areas, and more. Over the past two years, Seneca Nation of Indians has refused to pay the aforementioned casino allocations to the City of Niagara Falls which has proven to be devastating to the community. The overall amount of cash owed reached US$255,877,747.44.

In response to the dire situation, Niagara Falls is currently in, New York state government stated it is ready to support it financially. The first slice of the overall US$12 million support was recently bagged by the city officials and it is going to help for the funding of various projects. New York Governor Andrew Cuomo promised the substantial support and things have begun falling into place.

City Council Member Kenny Tompkins has been an avid supporter of this state aid idea. Over the past several weeks, he has been actively seeking information. Now almost half of the overall amount was sent to the bank just in time to prevent a disaster. Mid-June local officials warned that Niagara Falls is going to run out of cash by the end of July.

Another US$7 Million Would Be Bagged Soon

Mr. Morello has been in contact with the state officials, following the progress of the cash aid, as the situation was getting out of control. It could be recalled that the beginning of this year saw Niagara Falls receive a US$12-million loan that was supposed to cover everything until the legal feud with the tribal nation is solved. However, half a year later this issue still remains unsolved.

Niagara Falls City Councilman Kenny Tompkins is among the individuals warning about the repercussions of coffers running dry, especially when it comes to the tourist hotspot. What is missing is the 25-percent allocations generated by Seneca Niagara Falls Resort and Casino, Seneca Buffalo Creek Casino, and Seneca Allegany Resort and Casino.

A special arbitration panel sought to solve the situation, ultimately ruling that the tribal operator has to continue regular payments past the 14th year of casino operation, a detail that has never been negotiated in the operation compact. The Native American tribe filed federal court action that aims to vacate the arbitration panel.