Seneca Tribe Disputes Court Ruling According to Which They Owe $256 Million to State of New York

A ruling by arbitration court in New York against the Seneca Nation of Indians by which the tribe is supposed to pay up $256 million to the state of New York is being challenged by the tribe’s representatives.

A dispute with New York State in January ended in defeat for Senecas, who refused to share 25% of their three casinos’ slot revenue with the state, as was stipulated in a gaming contract between the tribe and the state.

At the same time, the arbitration consisting of three persons wagered, with a vote of 2 against 1, that the tribe owed circa $200 to NY state.

Senecas vs New York

However, last week, these numbers were adjusted and according to them, the Senecas now owe $255,877,747.44 to New York! The tribe was also informed that they should resume the quarterly payments that have been halted in April 2017.

As an alleviating condition…

…Senecas’ funds that are due to be paid to the state have been put into escrow, which means that the tribe wouldn’t go bankrupt or get themselves in credit debt with banks in order to fulfill their obligations.

However, the Seneca Tribe has filed in an official complaint and has formally asked the federal Department of the Interior (DOI) to review an amendment that the arbitration made to the contract. DOI oversees the Bureau of Indian Affairs.

Tribe’s Reasoning

According to Seneca Nation spokesperson, the amendment does “create an obligation on behalf of the Seneca Nation that does not exist in the contract as it is written”…

…and even presents New York State with additional payments in the region of over a billion dollars!

According to them, the original agreement was devoid of any language where the tribe is required to make payments to the state after the initial 14-year term. However, with New York announcing and authorizing new upstate venues, the timing of their payment halt was unfortunate, leading many to believe this was done out of protest against such a decision.

One of the proposed new casinos was supposed to be located just outside Seneca County, the tribe’s exclusive territory.

Casinos’ Troubled Days

Not all is going according to plan for the said casinos, however:

Empire Resorts already announced in January that it would shut down its operations at Monticello, as it looks towards enhancing traffic at new Resorts World Catskills casino. Other commercial casinos are also struggling to meet financial objectives, while two of them asked for approval to reduce the number of slot machines and were allowed to proceed.

The looming perspective of legal sports betting is eagerly awaited by all operators in NY – tribes included. According to local laws, New York tribal operators are allowed to offer any gambling service commercial casinos are allowed to. Seneca Nation has stated that they are closely monitoring the discussions regarding sports betting, while some other tribes have already confirmed they will engage in these activities, once made legal.

Source:

“Seneca Nation stalls on paying $256m slots tab to New York”, Steven Stradbrooke, calvinayre.com, April 18, 2019.