The expiry of a gaming compact between the Seneca Nation and New York at the end of 2023 resulted in difficulties for a number of host cities such as the City of Niagara Falls, among others. While some cities benefitted from advance payments in the absence of casino revenue, a number of organizations, including hospitals, schools and tourism agencies face significant difficulties after losing casino funding.
Cultural and Tourism Institutions Cut from Casino Revenue Funding
Besides Niagara Falls, the host communities of Buffalo and Salamanca benefitted from advance casino revenue payments, greenlighted by Gov. Kathy Hochul in 2024. However, the expiry of the gaming compact on December 31, 2023, combined with the expiration of a law commonly referred to as “99h” effectively halted the casino funds distribution to cultural and tourism institutions.
The loss of quarterly casino revenue funding forced those organizations to readjust their operations. As a result, the Niagara Falls Memorial Medical Center, the Niagara Falls School District, as well as the Niagara Falls Underground Railroad Heritage Center and Destination Niagara, the county’s leading tourism agency, faced significant difficulties over the last couple of years.
Despite those entities reliant on casino funds left without that vital support, officials representing them are trying to lobby with lawmakers to update the expired “99h” law that may ultimately resume the casino funding. A couple of bills are proposing to reinstate the funding for the four entities, as soon as a new gaming compact is signed between New York and the Seneca Nation.
In the meantime, while the City of Niagara Falls benefitted from a $7.6 million advance payment, none of those funds helped any of the entities that used to receive casino funding. City officials confirmed that the advance payments were used for general expenses.
In the words of Jim Perry, Council chairman, who was quoted by the Niagara Gazette, the expired “99h” legislation means that the city didn’t have an obligation to give any portion of the advance payments to the four entities. Mayor Robert Restaino argued that the lack of legislation makes any potential distribution even more difficult.
Expired Legislation Ends Niagara Falls’ Obligation to Distribute Casino Funding
Sara Capan, the Underground Railroad Heritage Center’s executive director and advisor, spoke about the legal hurdle its organization and other entities are facing in light of the expired “99h” legislation. She explained that the expiry of the legislation in question ended the city’s “legal obligation to provide those critical institutions with funding.”
Capan confirmed that an estimated $200,000 in casino revenue funding per year was vital for the Underground Railroad Heritage Center. “Casino funding allowed us to build the heritage center and allows us to operate the heritage center,” she explained. Finally, Capan outlined that losing this revenue, the Center was significantly limited in its operations despite being “one of the only cultural attractions that is located outside state park land and directly benefits the City of Niagara Falls.”
In light of the proposals, it will now be up to the lawmakers to sign a new gaming compact. At the same time, they should also approve an update of “99h” or introduce new legislation that would provide funding for the four entities that would ensure their future.