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New York State in the Process of Approving Another Tribal Casino?

Posted on November 18th, 2010

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New York Governor, David A. Paterson, is gearing up to sign a casino development project that will be owned by a Native American tribe. The move will allow a casnio to be built in the city of New York. State officials do not expect any delays, and the casino should be approved by the governor without too many objections with lawmakers. The agreement is to be forged with the Stockbridge-Munsee tribe of Mohican lineage. The tribe traces its roots in New York State, although it is currently based in Wisconsin. The tribe has also been, for years, actively lobbying for a casino in Sullivan County.

The casino would be located 90 miles northwest of New York City, particularly in the area of Thompson. Should this be realized, the facility will be the closest any casino that has table games and electronic gambling machines will be to the Big Apple. There are currently gaming facilities closer to NYC, but as of the moment, they only offer electronic gaming machines. This development may be considered unexpected in the administration of the governor, since Paterson has been giving more deals to tribes that are actually based in the state, for example, the Shinnecock tribe in the Hamptons, which has made the news recently after finally gaining federal recognition, a huge qualification for operating a casino.

So far, reception of the news by Sullivan County officials has been overly positive. As expected, not all groups hailed the development. A major New York tribe, the Oneida, did not react positively to the report. Moreover, watchdogs of the government have raised the issue that the negotiations between the state movers and the tribe were actually conducted clandestinely, a major no-no in awarding approval to tribal casinos. These groups are still pinning hopes on a number of factors that may cause delay or shelving of the project. Federal approval should still be acquired by the tribe, for one. But local officials and the tribe believe that they have already gone past most of the obstacles. The tribe and the state have agreed that the former will be settling a land claim suit in Madison County, which will entitle them an acre of land, according to an insider. The source wishes to remain anonymous as the agreement between the tribe and the state has not been actually finalized yet.

With the tribe securing land according to the yet-finalized agreement, this should secure them a foothold in New York, which should hasten the process of federal approval to construct a casino in Sullivan County. This can be a tricky process because federal regulators have always preferred for tribes to propose and construct their casino inside reservations. The tribe is also negotiating a compact with New York that would funnel a yearly income of $15 million to Sullivan County, as well as a percentage of casino revenue to the state. This should further hasten the process of getting approval from both the state and federal regulators. This compact should also be approved by the State Legislature. In an interview, Jessica Bassett, a spokeswoman for the governor, said, “The Paterson administration is working to reach an agreement with the Stockbridge-Munsee Community, Band of Mohican Indians; the secretary of the interior; and a number of local governments to resolve a longstanding land claim. This agreement would clear the way to bringing much needed economic development to Sullivan County.”

Meanwhile, Mark Emery, a spokesman for the Oneida Indian Nation, expressed his tribe’s disagreement over what is going on. He said, “We, and presumably every other Indian nation, were surprised to learn that the State of New York would invite an out-of-state tribe into the state to conduct gaming, which means that all of the profits will be drained from New York.” He also thinks that the idea of letting the tribe settle the claim is not appropriate. He explained, “The claim relates to Oneida Nation homelands, and nobody honestly believes the Stockbridge ever had a legitimate claim here.”
State Senator Charles E. Schumer (D- New York), meanwhile claimed that the deal would be good for both camps. He explained, “It would be a huge boost for the economy that will include job growth and tourism, in a region that has been struggling for decades to get back on its feet.”