The temporary Seneca Buffalo Creek Casino opened in 2007 with little fanfare in a bland metal

building, painted light blue, that had 124 slot machines

Tuesday the Senecas showed off a new $9 million expansion that doubled the size of the

temporary operation. But a steel frame for the permanent casino and hotel still looms over it.

The Senecas insist they plan to finish the permanent casino once the economy recovers, but

they have pumped $20 million in all into the temporary casino.

"The expansion project that we are unveiling today was built on excitement and momentum,"

Kevin W. Seneca, chairman of the Seneca Gaming Corp., said during a news conference. "Despite

economic conditions that have challenged every casino operator in this country, Seneca Gaming

Corp. has continued to stand out as a leader in our industry."

The expansion unveiled Tuesday boosts the casino to 10,800 square feet and raises the

number of slot machines to 455.

Seneca officials say the expansion is a sign of their ongoing financial commitment to

Buffalo.

However, several lawsuits seek to shut down the casino, and opponents say the Senecas'

three area casinos have hurt the region economically and increased problem gambling.

"The new temporary casino will be twice as damaging as the old temporary casino," said Joel

Rose, co-chairman of Citizens Against Casino Gambling in Erie County.

Tuesday's event was intended to tout the expanded casino, but Seneca Nation President Barry

E. Snyder Sr. also took the chance to criticize the state's efforts to tax Indian cigarette

sales. The move would violate sacred treaties in an attempt to alleviate the state's budget

woes, Snyder contended.

"It is a crisis that the state created, and not a problem that the Seneca Nation should be

expected to fix," he said.

This is the second expansion of the temporary casino since its unpublicized opening in

2007.

This $9 million investment added 223 slot machines, with names such as "Quick Hit Platinum"

and "Bright Diamonds," and 5,300 square feet of gambling space to the facility.

The slot machines started going online about two weeks ago, and the expanded wing of the

casino was about half-filled on a sunny Tuesday afternoon.

"We go to the other casinos, but now that this one has expanded, we'll probably come here

more often. It was too small before," said Pat Woelfel, a retired nurse from West Seneca, who

came with her husband, Tom.

"I think it gives added value to Buffalo," said Gene Utech, a retired Army veteran from

Amherst who visits the casino weekly. He praised the Senecas for continuing to spend money in

the city.

The financial downturn prompted the Senecas in 2008 to stop construction on the planned

$333 million casino and hotel just a short distance from the temporary facility.

The steel frame for the new casino has sat exposed to the elements for two winters now, but

Seneca officials say the steel remains structurally sound.

The leaders vowed to continue building the larger facility, though the gaming corporation

last year wrote off its $87 million investment in the project.

"We promised a few years ago that Buffalo Creek would be one of our future casino

enterprises, and we continue to work on that," Snyder told reporters. "Hopefully, some day

shortly, when the economy changes, we'll see the fruition of the casino downtown."

No city or county officials were introduced at the news conference and Peter K. Cutler, a

spokesman for Mayor Byron W. Brown, said he didn't know if the mayor was invited.

"The city's always had a good relationship with the Seneca Nation leadership. The decisions

they make are based on the current economic conditions," Cutler said. "Once the economic

conditions improve ... we expect that the nation and the gaming corporation will likely

revisit that original plan."

The Senecas' financial picture improved in 2009.

The gaming corporation announced last month that, despite declining revenue, profits rose

23 percent in the fiscal quarter that ended Dec. 31, compared to a year earlier, as the

corporation slashed costs.

Overall, the Senecas' three casinos drew in more than 9.5 million people in 2009, as many

gamblers chose to visit regional casinos instead of traveling to Las Vegas or Atlantic City,

according to industry experts.

The downtown casino drew 541,063 visitors in 2009, up 29 percent from 2008.

The Senecas face threats on several fronts, however.

State officials continue to try to find a way to tax Indian cigarette sales, an effort that would eliminate much of the price advantage the Senecas enjoy.

In Washington, D.C., the Senate this month voted to ban the shipping of cigarettes by mail, potentially dooming the Seneca Nation's profitable mail-order cigarette business.

And Ohio has joined Pennsylvania in allowing casinos to operate in those states, creating more competition for the Senecas and shrinking its market share in the area.

"I think what we have to do is diversify more. ... There's a lot of things we can do beside cigarettes and gasoline and other things," Snyder said, noting that the nation has launched a radio station, WGWE 105.9FM.

The legal battle over the Buffalo Creek Casino is unsettled.

Two lawsuits filed by casino opponents have made their way to the Second Circuit Court of Appeals and a third suit awaits a verdict in federal district court, said Cornelius D. Murray, an Albany lawyer representing one of the anti-casino groups.