By JAMES FINK
jfink@bizjournals.com | 716-541-1611

The numbers behind Seneca Gaming Corp. provide a snapshot of the company's impact on the region.

The casino operation of the Seneca Nation of Indians reported one of its strongest quarters in more than a year with gains in gaming and net slot revenues. In the third quarter, gaming revenues rose 2 percent to $139.9 million; net slot revenues were up 3.2 percent to $126.6 million. Non-gaming revenues, meanwhile, rose 2.8 percent to $26.7 million.

Catherine Walker, Seneca Gaming president and CEO, and Chairman Kevin Seneca said that was good news, especially during a difficult economy. They remain cautious, however.

"The economy and the job situation remains one of our biggest concerns," Walker said. "I'd love to see the scenario where entertainment dollars are back to their pre-recession levels. But we keep hearing 2011 will be another tough year, and we may not see an (economic) uptick until 2012."

Seneca Gaming posted stronger-than-expected numbers in the third quarter, which ended June 30.

"We're trying to prove the analysts wrong," Walker said.

Seneca Gaming has been aggressive in efforts to attract patrons to its three area casinos: Seneca Allegany Casino and Hotel in Salamanca, Seneca Buffalo Creek Casino in downtown Buffalo and Seneca Niagara Casino and Hotel in Niagara Falls.

In recent months, it doubled the number of slot machines at the Buffalo casino, opened the Seneca Hickory Creek Golf Course in Lewiston and opened Noodle Bar in Niagara Falls. It also opened 10 retail stores in Niagara Falls and Salamanca.

Seneca Gaming employs nearly 4,000 people and has an annual payroll of $110.29 million. It reports that it spends more than $102.86 million with local companies. Since its first casino operation in Niagara Falls in late 2002, Seneca Gaming has paid $115.46 million in slot machine-based revenues to New York state.

"The outreach we have is massive," Seneca said. "I think what gets lost sometimes is the economic impact we have on the region. A company could come to Buffalo and create 1,000 new jobs and they would get the red-carpet treatment. We created 4,000 jobs in less than eight years."

With three casinos and the recently opened golf course, Seneca Gaming has invested $1.2 billion in local construction projects since 2002.

These days, the public focus is on the Buffalo Creek casino, Construction on the permanent, $333 million casino and hotel project stopped two summers ago when development interest rates more than tripled. A lawsuit filed by anti-casino gaming supporters remains under federal review.

Expansion plans in Niagara Falls and Salamanca were put on hold because of rising interest rates, as well.

The Navajo Nation, meanwhile, recently took out a series of loans for projects it has under way in the Southwest. It's looking at a 16 percent interest rate, up from the 13 percent it had earlier secured.

Walker said those rates are too steep for Seneca Gaming.

"You have to look at interest rates that make sense," she said. "I know we are not going to go out to the market today. It wouldn't be wise, at all, to go out to the market until everything settles down."

That said, she still expects the Seneca Nation to move forward with the permanent casino at some point. The same goes for the Salamanca and Niagara Falls expansions.

"It's a constant process of re-evaluation," Walker said.

For now, she and Seneca say that Seneca Gaming will continue to focus on organic growth by attracting patrons. Combined, the three casinos attracted more than 10 million customers last year.

Growth will come from new slot machines, more concert bookings in Salamanca and Niagara Falls and more patrons visiting hotels and restaurants.

The hotels in Salamanca and Niagara Falls are running a combined occupancy rate of 92.8 percent, down 2 percent from last summer.