New York cities face financial difficulties after loss of casino revenue

Some New York cities that benefited from casino funding are now facing difficulties in a number of key areas.

A gaming compact between the Seneca Nation and New York expired at the end of 2023 and has led to a number of issues for New York cities since then. While some have received advance payments in lieu of casino revenue, some organizations are struggling to fund key activities like hospitals, schools, and tourism following the loss of casino funding.

For example, while Governor Kathy Hochul awarded the City of Niagara Falls, Buffalo, and Salamanca advance casino revenue payments in 2024, other organizations have been forced to tighten up their operations. The compact expiration came at the same time as another law, often called ’99h’ that essentially halted the casino funds distribution to cultural and tourism institutions.

A few groups affected include the Niagara Falls Memorial Medical Center, the Niagara Falls School District, the Niagara Falls Underground Railroad Heritage Center, and Destination Niagara, the county’s leading tourism agency, despite the fact that the City of Niagara Falls itself received a $7.6 million advance payment. All of these organizations and more have subsequently faced significant difficulties since the end of 2023.

None of the advance money payment went to these groups, with city officials telling Gambling News that the funds were reserved for general expenses.

Officials representing these groups are lobbying lawmakers to update the ’99h’ law, with the hope of resuming casino funding for these organizations. There are also two bills in the works that propose reinstating funding specifically for the four entities mentioned above as soon as a new gaming compact is signed between New York and the Seneca Nation.

The lack of legislation usually provided by the ’99h’ law means that there is no obligation for the City of Niagara Falls to award any portion of the advance payments to the organizations. According to Mayor Robert Restaino, the lack of legislation makes any future potential distribution more difficult.

This comes as gambling hits new record highs in the US in 2024, with last year being the fourth consecutive record year for commercial gambling.

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