New York Gives Sets Payments Deadline to Seneca Nation

New York is now stepping up its efforts to gather its unpaid gaming allocations from the Seneca Nation of Indians. Last week, in a letter to the tribe, state officials urged it to pay its dues of more than US$500 million which it owes to the state under the 2002 gaming compact by Wednesday, or face enforcement and collection efforts.

Several years ago, Seneca Nation stopped honoring its revenue-sharing agreement with the Empire State, on the basis that the renewed contract did not specify payment details. This January, the Nation’s President Mathew Pagels, came out with a statement that the tribe will pay its dues, however, opposition emerged from the Nation, and payments were put on hold.

Protecting Its Interests

Members of the Seneca Nation claimed that Mr. Pagels’ decision to pay up US$539.7 million in casino revenue sharing allocations is not consulted with Nation members. That is why the tribe’s 16-member Council put the payment on hold until the federal government conducts a review of the revenue-sharing agreement between the Empire State and the Native American Tribe.

On Friday, Mr. Pagels commented that now it was not the time for state officials to resort to bullying and greed. He said that the review by the National Indian Gaming Commission is out of the hands of the tribe, and is hopeful for a decision as soon as possible. He said that instead of threatening with aggressive actions, the state should give the federal agency the needed time to review the matter.

A spokeswoman for the Commission, Mary Parker, shared that she could not provide an answer on when the review will be finished. However, the state is pushing for the payments, as in its letter it demanded them by Wednesday. If not received, attorney Gregory M. Starner will attempt to collect them on all amounts under a 2019 federal court ruling, that requires the Nation to pay approximately US$565 million plus interest and recovery fees.

Gov. Kathy Hochul’s spokesman has also addressed the matter by saying that the Nation has been required to make the payments since April 12, 2019. He explained that the state has been patiently waiting for the payments for almost three years and that now it was time for the state to protect its own interests. He also said that Gov. Hochul expects the matter to be resolved quickly and renew discussions on a new compact.

Mothers of the Nation Oppose the Decision

The tribe’s Mothers of the Nation have been one of the parties that have opposed the January agreement with the state to honor the casino payments. The group, which is recognized under the Seneca constitution of 1848 treaties, launched a petition to gather signatures of Seneca women who deem the settlement agreement unacceptable. And the petition has now been filed to the Department of the Interior.

Contract Extended

Besides, having trouble with New York State, more news from the Nation include its Seneca Gaming Corporation ink a contract renewal Pegula Sports & Entertainment. The new contract is five years long, and thus the tribe will continue to be the official gaming partner of the Buffalo Bills and Buffalo Sabres. The two companies have been successful partners for a decade now.

Source: Tokazs, Jay “New York demands Senecas pay more than $500 million immediately or face collection”, The Buffalo News, March 11, 2022