Monday, July 30, 2012

Indians, the Internet and Withheld Payments to Localities

As things ramp up on the National Level for Internet Gaming, the Native Communities are flexing their muscles in DC.

The Senate Committee on Indian Affairs (SCIA) released a discussion draft bill on Internet gaming titled the “Tribal Online Gaming Act of 2012.” The draft was publicly announced to Tribal Leaders gathered at the National Indian Gaming Association’s Legislative Summit in Washington, D.C.

 A summary provided by the SCIA acknowledges the important economic contributions that Indian gaming provides to this country. It states that Indian Gaming “has created 628,000 jobs for Indians and local communities, and comprises 40 percent of all gaming in the United States,” and finds “that any federalization of online gaming must provide positive economic benefits for Indian Tribes.”


You have to love Robert Odawi Porter, President of Seneca Nation.  He can speak so eloquently, he can make gaming sound poetic.

Robert Odawi Porter, the president of the New York-based Seneca Nation of Indians, said "a thousand flowers bloomed for Indian nations" after Congress allowed tribes to enter the big leagues of gambling in 1988. At a Senate Indian Affairs Committee meeting in February, he said online gaming threatened tribal sovereignty and the tens of thousands of jobs the casinos had created.


However, the municipalities are not looking so kindly upon the Seneca and Mohawks nations right now.  The Albany Times Union is reporting today on the withheld Indian payments to localities:

The Seneca and Mohawk tribes have for years withheld casino payments to the state, claiming that New York violated contracts with the tribes by allowing gambling in their exclusive territories. Consequently, the state stopped sending money — more than $100 million so far — to municipalities where Indian casinos operate.

Without their share of casino money, the local governments are straining to provide basic services. And with no compromise in sight, arbitrators may have to resolve the long-running dispute.

The Seneca Nation of Indians, which operates casinos in Buffalo, Niagara Falls and Salamanca, stopped sending payments starting in 2009. They say the state violated the compact that gives the Seneca exclusive gambling rights west of the Finger Lakes when it allowed three western New York harness tracks to operate video lottery terminals.

 Seneca President Robert Odawi Porter said about $400 million worth of withheld payments to the state has been placed in escrow. A quarter of the money would have gone to host cities like Buffalo and Niagara Falls.

The St. Regis Mohawks, who operate a casino on their land straddling the Canadian border, separately decided in October 2010 to stop making payments, citing slot machines operating on Indian territory elsewhere in northern New York.

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