IRVING — The Seneca Nation of Indians has filed its official response to New York state’s arbitration demand made earlier this month over the Senecas decision to end casino revenue sharing under the state Gaming Compact.
In its response, the Nation asserted its compliance with the provisions of the Gaming Compact it signed with the state in 2002, notably the provisions related to the Nation’s 14-year revenue share obligation, which the Nation fulfilled earlier this year, a Seneca spokesman said.
According to the language of the Compact, the Nation agreed to pay a percentage of the slot machine revenue generated at its three casinos for a period of 14 years, said spokesman Phil Pantano.
There were three percentage levels for revenue sharing from slot machines and video poker games, Pantano said. Those levels are: Years one to four, 18 percent; years five to seven, 22 percent, and years seven to 14, 25 percent.
According to the Nation’s filing, “The text of the Compact contains absolutely no requirement for payments beyond those three payment periods.”
The Nation made its final payment to New York state in March. The Senecas have paid the state more than $1.4 billion over the 14-year period.
“The Seneca Nation has faithfully honored the agreement we negotiated and signed in good faith in 2002,” Seneca Nation President Todd Gates said in a statement, adding the state is “trying to create a reality that does not exist.”
The arbitration filings come almost six months after the Nation made its final required payment in late March. At that time, Gates spoke directly with Gov. Andrew Cuomo, who asked Gates if he would be willing to meet. Cuomo subsequently canceled two meetings with Gates, one in July and one in August.
“For the state to say that the Nation was not willing to meet is a blatant lie and the height of hypocrisy,” Gates said. “It was the state, and the governor specifically, who was unwilling to meet with me and engage in productive dialogue. The governor spent almost half a year avoiding meeting with me.”
A three-member arbitration panel will now be empaneled to hear arguments on the matter. The Seneca Nation and New York state will each make a selection to the arbitration panel, which will then select a third, mutually-agreeable panel member.
Caught in the middle again are Western New York municipalities and school districts which received a share of the Seneca casino revenue sharing.
They include the city of Salamanca, Cattaraugus County and the Salamanca City Central School District. The city expected to receive almost $6 million this year and the county and school more than $1 million each.
The municipalities use the funds to make up for the loss of property tax revenue when an enrolled Seneca buys property in Salamanca.