Court Rules in Favor of Indian Casinos

In the Hudson Valley, the Might M Gaming at Monticello Raceway opened for business on June 30. The facility features more than 1,700 VLTs. State officials say that the VLT facilities at horse racing tracks in Monticello, the Finger Lakes, Saratoga Springs and the Buffalo suburb of Hamburg will remain open since the case will likely be appealed. VLT facilities are also planned at Yonkers Raceway, Aqueduct, Batavia Downs and Vernon Downs racetracks.

The Appellate Court in a unanimous decision ruled that the VLTs were constitutional, but said the state's plan to divert some of the VLT revenues to horse tracks to enhance purses and breeding funds violated the State Constitution. It also ruled that the State Constitution requires the net proceeds of any lottery game to go strictly to fund education. In addition to the court's favorable opinion on the state's Indian gaming law, the court also held that the state's entrance into the multi-state Mega Millions lottery was legal.

A spokesman for Gov. George Pataki said in response to the VLT ruling, "While we are still reviewing the decision, we do expect that the ruling will be appealed."

Bernard E. DeLury, Jr., executive vice president and general counsel with Caesars Entertainment, was pleased with the court's decision on the Indian gaming issue. Caesars Entertainment is planning to build a $500-million casino in partnership with the Saint Regis Mohawk Tribe in the Town of Thompson in Sullivan County.

"Today's court decision represents a major step forward in the effort to finally begin construction of a world-class casino resort in the Catskills…" DeLury stated. "The Appellate Division … spoke clearly and without ambiguity: The 2001 legislation authorizing six new Native American casinos in New York State, including three in the Catskills, is consistent with the New York State Constitution as well as state and federal law."