Seneca Gaming Corporation (SGC)
is wholly owned by the Seneca Nation of Indians of New
York and chartered to manage all of the Nation’s gaming
operations. SGC was chartered by the Nation in August
2002. SGC’s wholly owned subsidiaries, Seneca Niagara
Falls Gaming Corporation, Seneca Erie Gaming Corporation
and Seneca Territory Gaming Corporation were chartered
in August 2002, August 2003 and September 2003,
respectively. In August 2002 the Nation entered into a
Compact with New York State that provides the Nation
with the right to establish and operate three Class III
gaming facilities in Western New York. We currently
operate Seneca Niagara Casino and Seneca Allegany
Casino, which opened on December 31, 2002 and May 1,
2004, respectively. The Seneca Niagara Casino and Seneca
Allegany Casino are owned and operated by SNFGC and
STGC, respectively. Our two Casinos are the only gaming
facilities in New York State to offer both Class III
slot machines and table games.
Under the Compact, the Nation also has
an exclusive right to establish and operate a third
Class III gaming facility in Erie County, New York. This
exclusive right may terminate if the Nation fails to
commence construction of a Class III gaming facility in
Erie County by December 9, 2005 or if the Nation fails
to commence Class III Gaming operations within sixty
(60) months of December 9, 2002. On April 9, 2004, we
entered into a non-binding letter of intent with Uniland
Development Company, or Uniland, to purchase
approximately 57.1 acres of property for this facility
near the Buffalo-Niagara International Airport in
Cheektowaga, New York, or the Cheektowaga Site. In May
2004, various parties, including the Mayor of the City
of Buffalo, filed a complaint against Governor George E.
Pataki, the State of New York, the Town of Cheektowaga
and Uniland to prohibit the sale of the Cheektowaga Site
to us. On June 16, 2004, The Honorable Joseph G.
Makowski of the Supreme Court of the State of New York
agreed with the plaintiffs and held that the Compact
provision allowing the Nation to locate a Class III
gaming facility anywhere in Erie County “in the event a
site in the City of Buffalo is rejected by the Nation
for any reason” is unconstitutional. The Town of
Cheektowaga and Uniland have filed notices of appeal and
we support their decision to appeal. In the event that
we are able to open a Casino in Erie County, this Casino
will be owned and operated by SEGC.
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