Federal court ruling again backs state in casino revenue dispute with Senecas
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The compact, which runs through 2023, included an automatic renewal at the end of 2016 that took effect for the remainder of the compact term when neither side objected to it.
When the Senecas stopped paying in 2017, they maintained that the renewal of the original agreement didn’t specifically call for further payments to the state.
The dispute ended up with an arbitration panel that decided against the Seneca Nation in 2019. A federal court confirmed the arbitration award – a ruling that later was affirmed by the U.S Court of Appeals for the 2nd Circuit.
The payments since the dispute began add up to about $450 million, which is sitting in an escrow account.
The Senecas again asked a federal court last April to intervene, while also requesting a U.S. Department of the Interior review of the terms of the revenue sharing as spelled out in the 2002 compact.
The Interior Department earlier this year questioned whether the revenue payments complied with federal Indian gaming laws, and it referred the issue to the National Indian Gaming Commission for “possible enforcement action,” according to court papers.
The Senecas said they were concerned the Gaming Commission could force them to shut down the casinos for violations related to the revenue sharing.
