"To fully understand the casino, we need to separate exclusivity payments to the state of New York from the distrubution of these funds to the city. In laymen terms, the state has a contract with the Seneca Nation and the city has a contract with New York state. If the city wants to change its contract with New York, they need to do so through the state legislature. The law behind the compact, the provisions of the compact and the New York State Finance Law that governs distribution of exclusivity payments can be summerized as follows:
The Indian Gaming Regulatory Act: “A tribe seeking to engage in class III gaming is required to give notice to the state that it wishes to negotiate a compact. Upon receipt of that notice, the state is required to negotiate with the tribe in good faith.” Such compacts are subject to approval by the Department of the Interior.
Gaming Compact-State Contribution: “In consideration of the exclusivity granted by the state prusuant to Paragraph 12a of the compact, the Nation will contribute to the State a portion of the proceeds from the operation and conduct of each category of Gaming Device for which exclusivity exists.” This payment currently stands at 25 percent and the compact is scheduled for negotiations in 2016."
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Dan Davis:
An indepth look at the Seneca Casino issue
(The Niagara Gazette 11/29)
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