Salamanca casino gets liquor license

The bar is now open at the Seneca Allegany Casino in Salamanca. The Seneca Nation's gambling facility, which has been operating without a liquor license since May 28, was granted a permanent license as of 12:01 a.m. Wednesday. "It will make for a more enjoyable casino experience. People like to have beer when they are out for an evening," said G. Michael Brown, president and chief executive of Seneca Gaming Corp. At the same time, Seneca Gaming reported a significant increase in revenue, largely attributed to the Salamanca facility. The Salamanca casino did serve alcohol from its May 1 debut through May 28 under a series of temporary liquor permits issued by the state. Neither the Senecas nor the State Liquor Authority has explained the delay, but law enforcement sources said the license was stalled by "turf wars" between the State Police and the Cattaraugus County Sheriff's Department over policing the facility. "It doesn't matter what the hang-up was, the good news is we now can serve alcohol and that should boost business," Brown said. Seneca Gaming reported strong revenue gains for the quarter ending June 30 and positive early results for Seneca Allegany Casino. Combined gambling revenues from Seneca Niagara Casino and the new Allegany casino totaled $88.8 million, compared with $62 million for the previous quarter - a 43 percent gain. Brown attributed $17 million of those revenues to the Salamanca facility. "The property has been very well received by the public. Revenues are above projections," Brown said. He also noted that in its first two months of operation more than half the patrons are coming from outside New York State, primarily from Pennsylvania, with additional business from Ohio. The Seneca's Niagara Falls facility charted a 16 percent revenue increase for the second quarter - $71.8 million compared with $62 million in the first quarter. The gain came despite new head-to-head competition from the Niagara Fallsview Casino Resort, the $800 million gambling/hotel facility that opened in Niagara Falls, Ont., on June 10. Seneca Gaming pegged net income for the two casinos at $18.8 million for the second quarter, down 7 percent from $20.3 million for the same period in 2003. The corporation cited numerous capital expenses, including $2.7 million in pre-opening expenses at the Salamanca facility, as a key factor in the net income dip. Over the past nine months, Seneca Gaming has spent $112 million on construction and equipment, including $71.4 million on Seneca Allegany. Another $40.7 million was spent at Seneca Niagara for a new parking garage, bus lobby, restaurant, and renovation of the casino's mezzanine level to add another 250 slot machines, banquet room and poker area. While development of a Seneca casino in Erie County remains stalled by a legal battle over its choice of a Cheektowaga site, the Senecas are pressing ahead with more expansion at their two existing sites. A $200 million hotel is under way in Niagara Falls, while another $162 million is being spent on a parking garage and hotel project in Salamanca. In May, Seneca Gaming completed a $300 million bond sale, which is believed to be the largest initial bond offering in Indian gambling history. The sale of those commercial notes requires the gambling corporation to make public its quarterly financial reports. The current report is the first of those releases.