The state of New York will soon be receiving some mail from the Seneca Nation of Indians in the form of a $57.3 million check.
As per an agreement between the state and nation providing for the operations of three Western New York casinos, the Senecas previously sent the state an annual share of slot machine revenues. The recently mailed payment is the first time the nation has begun six-month payments, as per the contract for the casino operations. In 2010, quarterly payments will be made.
''The Seneca Nation has always honored its agreements and continues to live up to the terms of our compact agreement with New York state,'' said Maurice A. John Sr., nation president.
''The revenues generated at our facilities have supported several important projects throughout Western New York and will continue to have a positive economic impact on the local community.''
Twenty-five percent of the payments made return back to hosting municipalities. The Seneca Allegany Casino payment totaled $16,361,346. It will be split between the city of Salamanca, Cattaraugus County and the Salamanca City Central School District. The Seneca Niagara Casino and Hotel payment totalled $38.1 million, and $2.8 million was generated from the temporary Buffalo Creek Casino in Buffalo.
In addition to the revenue slated for the host community in Buffalo, it is anticipated that the community of Niagara Falls will receive $9.5 million, while the community of Salamanca will receive $4.09 million from the six-month payment.The Nation has now made more than $357 million in exclusivity payments to New York state since Seneca Niagara Casino opened on Dec. 31, 2002.
In Cattaraugus County, the share will reimburse the county, city and school for properties that come off tax rolls. When Senecas purchase land on their reservation, on which most of Salamanca is built, they do not pay property taxes. Reimbursements will then go to the county and city for expenses occurred for hosting the casinos. The remainder goes to the county and city for economic development plans they will put together. Once the plans are approved by the state, they get a check to implement them.
''Our enterprises have created thousands of jobs for local residents, tremendous opportunities for local businesses and needed revenue for local governments,'' John said. ''The people of Buffalo are seeing the first fruits of the Seneca Nation's investment downtown.''
According to the Nation State Gaming Compact signed in 2002, the nation pays the state 22 percent of the ''net drop'' of the slot machines - which represents money dropped into the slot machines, after payout but before expense. The state then returns 25 percent of the amount to the ''host community'' based on the facility's location.