Seneca Nation Files For Federal Stay In NYS Argument

Seneca Nation firmly stands behind its position that the New York State legislature has violated its gaming compact with the former. Last Friday on April 23, 2021, the tribal corporation has informed that it has applied for a 45-day federal stay in relation to its alleged financial obligations to the state. The sum now amounts to US$1 billion in revenue sharing payments.

The legal dispute between the two sides continues for quite a while now. The gaming compact was signed in 2002 and according to which the tribe has to share a portion of its gaming revenue with the state. However, the corporation argues that the state has violated the contract by extending it and thus leading to the native-American corporation refusing to honor its financial obligations.

Federal Stay Application

The financial debate continues to unravel between the two sides, as last Friday the tribal corporation has officially announced its submission for a 45-federal stay regarding the payments. The Class III gaming compact and its payment provisions will be revised by the U.S. Department of the Interior and will shortly provide an update on the matter.

President of the tribal corporation Matthew Pagels has recently shared his thoughts on the issue between the two parties. He stated that over the course of the last few years the gaming company has battled the NYS legislature’s desire to acquire an additional US$1 billion in revenue sharing payments. He added that the Compact evidently states that no payments are required.

Mr. Pagels has also stated the payments would be a violation of the federal law as the Indian Gaming Regulatory Act states that no state is allowed to impose tax, charge, fee, or other assessments without meaningful benefit to the tribe. The president of the gaming company has also argued that the NYS has not justified any of the further payments.

Additionally, Mr. Pagels claimed that the state has made a mockery of the Native-American corporation’s exclusivity zone with its three racetrack casinos and recently issued state-licensed facility which is 5 miles from Seneca County. He concluded by saying that the federal government has requested both sides to file a 45-day regulatory review, as the state has refused to do so.

Cuomo’s Budget Plan

Back in February Governor Andrew Cuomo urged the tribal company to honor its financial obligations to the state as the budget is heavily struck by the unprecedented situation. The state’s legislature argues that the tribe owes over US$450 million in revenue tax payments accumulated in the corporation’s three non-commercial casino venues in the state.

Federal Court’s Verdict

Additionally, also in February, a federal court of appeals has given its decision on the 2002 Gaming Compact dispute between the two sides. The court stated that Seneca Nation must fulfill its financial obligations accumulating to more than US$255 million in casino revenue. The tribe’s argument was that the court deliberately disregarded the Indian Gaming Regulatory Act and incorrectly issued its verdict.

Source: “Seneca Nation requests federal stay in financial dispute with New York State” WGRZ, April 23, 2021