Key Takeaways:

• Casino compact expiration halts revenue sharing for Niagara Falls and local entities
• '99h' legislation expiry leaves organizations without legal claim to casino funds
• City officials and entities lobby for renewed compact and updated revenue distribution

The expiration of the casino gaming compact between New York State and the Seneca Nation of Indians on December 31, 2023, has created a complex situation for Niagara Falls and several local entities that previously benefited from casino revenue sharing. This development has particularly affected organizations that relied on funds distributed through the now-expired '99h' legislation.

While the City of Niagara Falls received an advance payment of $7.6 million from Governor Kathy Hochul last year, other entities such as the Niagara Falls School District, Niagara Falls Memorial Medical Center, Destination Niagara, and the Niagara Falls Underground Railroad Heritage Center have been left without their usual casino revenue allocations.

The '99h' legislation, officially known as the 'tribal-state compact revenue account,' previously ensured that a portion of the city's casino revenue share was distributed to these organizations. With its expiration, there is no legal framework for continuing these payments.

City officials, including Mayor Robert Restaino, argue that without a new compact and updated legislation, they are under no obligation to share the advance payment with the other entities. Restaino stated, 'The money that we receive already has a destination,' explaining that the funds are crucial for the city's general operations.

Representatives from the affected organizations are now lobbying state officials to negotiate a new compact and update the '99h' legislation. State Senate Minority Leader Rob Ortt and Assemblyman Angelo Morinello have proposed bills to ensure continued allocations to these entities once a new compact is in place. However, the legislation still lacks a Democratic sponsor in the Assembly.

The situation has sparked debate about the future of casino revenue sharing in the region. Some officials, like State Assembly Majority Leader Crystal Peoples-Stokes, prefer to see a renegotiation of the gaming compact, potentially giving the city more control over fund allocation.

As discussions continue, the impacted organizations face financial uncertainty. The Niagara Falls School District, which previously received around $750,000 annually, has had to adjust its budget expectations. Similarly, Niagara Falls Memorial Medical Center and Destination Niagara are grappling with the loss of substantial funding that supported various initiatives and operations.

The ongoing negotiations and legislative efforts will be crucial in determining the future of casino revenue sharing in Niagara Falls and its impact on local entities that have come to rely on these funds for their operations and community services.