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Seneca Nation requests federal stay in financial dispute with New York State

Seneca Nation said the U.S. Department of the Interior declared 'it has yet to review the legality of the payment provisions' of the gaming compact with the state.

IRVING, N.Y. — Seneca Nation on Friday announced that it has requested a 45-day federal stay concerning $1 billion in revenue sharing payments.

In a statement, Seneca Nation said the U.S. Department of the Interior declared "it has yet to review the legality of the payment provisions of the Nation’s Class III gaming compact with the State of New York."

It's the latest development in a legal battle between Seneca Nation and New York State over gambling revenue.

“For the past several years, the Seneca Nation has fought against New York State’s effort to obtain an additional $1 billion in revenue sharing payments despite the clear language of our Compact that no payments are required," Seneca Nation President Matthew Pagels said in a statement.

"Such payments would violate federal law because the Indian Gaming Regulatory Act is crystal clear that no state shall impose a ‘tax, charge, fee, or other assessment’ without a meaningful benefit to the Indian tribe. The State has done nothing to justify any additional payments."

Pagels added: "Indeed, it has made a mockery of our ‘exclusivity zone’ with its three racetrack casinos and a new state-licensed facility five miles from our zone in Seneca County."

Pagels said the federal government invited both sides to submit to a 45-day regulatory review, adding that the state declined to do so.

New York Gov. Andrew Cuomo in February said it was time for the Senecas to pay the state what they owe. 

Cuomo says the Senecas owe $435 million to the state. Of that $435 million, $115 million would go to local governments, including Buffalo, Salamanca and Niagara Falls.

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