The addition of table games to Pennsylvania slot machine facilities, some that have horse racing, could deal another blow to Seneca Nation-owned casinos that recently reported an economic downturn while bracing for expected Ohio casino competition.

The nation owns three Western New York casinos including those in Niagara Falls, Buffalo and Salamanca. In a recent report with the U.S. Securities and Exchange Commission, Seneca Gaming Corp., which runs the sites, reported a $19.4 million net loss for its three sites, attributing that to the economy and competition with other nearby sites.

"The recession and increased regional competition have presented operational challenges resulting in lower net revenues," states the report that showed a 7.2 percent drop in gaming revenues in 2009, compared to 2008. When lodging, food and costs for ceasing construction at some of the sites are added in, a $19.4 million loss was seen for the 12-month period.

How Pennsylvania's recent passage of legislation that allows blackjack, poker, roulette and other table games at slots-only sites such as Presque Isle Downs and Casino will affect that is being watched.

"New developments in neighboring markets are something that we always watch," said Cathy Walker, chief operating officer of the gaming corp.

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"At the end of the day, however, a slot machine or table game does not make a casino property a preferred destination for patrons," Ms. Walker continued. "What separates one property from another in the eyes and hearts of a patron is most often the overall experience they enjoy during their visit - from the excitement on the gaming floor, to the meals and hotel rooms, to the service they receive from the staff," she said, adding the Seneca casinos, including Seneca Allegany, off a complete resort experience. We are confident that the loyalty we have seen from patrons from throughout New York, Ohio, Pennsylvania, and other locations will continue to be strong.''

According to previous filings with the national Securities and Exchange Commission, about 70 percent of patrons visiting the Seneca Allegany Casino are from outside New York. The casino, the SEC filing states, attracts patrons from south Western New York, Pennsylvania and Ohio.

Ohio lawmakers passed legislation in November to allow four casinos to be built in 2010 in its largest cities. Ohio voters cast ballots favoring allowing the casinos by a 53 percent yes to 47 percent. One privately-run casino in each of the cities of Cincinnati, Columbus, Cleveland and Toledo would be built.

At the time of that passage, Ms. Walker said Seneca Gaming staff were monitoring developments there. She said convenience gaming is sought by some, which could lead to Ohio residents choosing the closer facilities, but, she said, Seneca Allegany still offers "a beautiful destination" with amenities and other attractions such as skiing that other areas may not offer.

"I think Ohio patrons enjoy uniqueness," she said, adding Seneca Allegany offers that.

Ms. Walker said casino staff will try to capitalize on that uniqueness, beauty, service and amenities in light of the Ohio vote. She said marketing initiatives are planned to draw Ohio and Pennsylvania customers. She is therefore remaining hopeful the Ohio vote will introduce people to the casino market that may lead them to Seneca Allegany. That, she said, may provide more of a customer base for the area casino.

Seneca Allegany's most imminent competition has been Presque Isle Downs in Erie, Pa., reports an SEC filing, and, that was before the vote allowing table games.