Seneca Nation Agrees to Honor NY Gaming Payments

It seems as though the dispute between the Seneca Nation of Indians and New York State is finally about to be resolved. On Monday, the Seneca Nation Council passed a resolution that would transfer funds from a restricted escrow account to settle the tribe’s outstanding gaming revenue argument.  Thus, paying up approximately US$565 million in financial obligations to the Empire State.

Back in 2017, the tribe stopped its gaming revenue payments to the state, as it claimed that the state violated the extended gaming compact. Then, this January the Nation’s President Matthew Pagels announced that the tribe will honor its payments, however, some of its members branded the decision invalid as it was not voted by council.

Issuing the Funds

On Monday, the Seneca Nation Council held a special meeting during which it voted in favor of a motion directing the transfer of funds to settle its argument with the Empire State. The resolution called for the transfer of US$$564,842,625.20 from a restricted escrow account in which compact-related funds have been accumulated during the five-year conflict. The sum covers the period from January 1, 2017, through December 31, 2021.

The resolution also lifts the restrictions which were previously placed on some of the Nation’s bank accounts and businesses. According to the tribe, their accounts were unjustly targeted and frozen by the state in an act of blatant aggression, despite the state being aware that the Nation’s secured account had more than enough funds to cover the compact-related obligations.

At the meeting, Mr. Pagels commented that the Nation could not stand by while Albany intentionally attempted to hold its people and thousands of Western New Yorker residents as hostages. The freezing of the accounts put the Nation’s delivery of services such as healthcare and education to its people in jeopardy. In addition to the transfer of funds, the Nation is now ready to begin new compact negotiations.

According to Mr. Pagels, the Nation has had a major part in the resurrection of the Western New York economy, thanks to its three casino properties in Buffalo, Salamanca, and Niagara Falls. He claims that when the two sides first inked the compact 20 years ago, the state promised the Nation gaming exclusivity, which never really existed, and that is something that must be addressed in the new agreement.

Mothers’ Statement

In addition to that, on Monday, Mothers of the Seneca Nation, which also opposed January’s decision to make the payments, have also released a statement. The group commented that the state has used strong-arm coercive tactics when freezing the Nation’s bank accounts over the last weekend. According to them, this move was a violation of a federal order, as the tribe had more time to issue the funds.

Deadline Given

Previously, Gov. Kathy Hochul’s spokesman explained that the state has been waiting for the Seneca Nation’s payments since April 12, 2019. In his words, the Empire State has been patiently waiting for the money for over three years and now it was time for it to protect its own interests. He also stated that Gov. Hochul wants to see the issue resolved quickly.

Source: Quigley, Kellen “Seneca Nation to make $565M casino payment to NYS”, Salamanca Press, March 29, 2022