Cuomo, Upstate Tribe Pact on Gaming Issues

ALBANY-New York State will remove the eight-county Saint Regis Mohawk exclusivity zone from the proposed upstate casino-siting legislation, ending a three-year dispute, Gov. Andrew Cuomo said Tuesday. The agreement, which Cuomo and representatives of the Saint Regis Mohwak tribe signed Tuesday, follows last week's resolution of an even longer-standing dispute between the state and the Oneida Nation over gaming revenues.

Under terms of the agreement announced Tuesday, the Saint Regis Mohawks will make $30 million of payments from the Akwesasne Mohawk Casino New York State to resolve past revenue sharing payments, and will pay 25% of the casino's future gaming revenues to the state. In both cases, the state will divide 25% of its share of the revenues between St. Lawrence and Franklin counties.

The two counties will also be excluded from consideration for one of the three upstate casinos proposed in the legislation the Cuomo administration introduced recently, along with Clinton, Essex, Hamilton, Jefferson, Lewis and Warren counties. Additionally, Cuomo will convene discussions among the state, the tribe and St. Lawrence and Franklin Counties to resolve unrelated disputes involving land claims and New York Power Authority issues. The remaining revenue share will be held in escrow pending resolution of these outstanding issues, according to the governor's office.

The Oneida Nation agreement announced last week marks a resolution to a four-decade dispute. It gives the Oneidas exclusive rights to casino gaming in a 10-county region of Central New York, including Cayuga, Chenango, Cortland, Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego counties. The Oneidas have operated Turning Stone Casino and Resort in upstate Verona, NY since 1993.

Under the agreement, the Vernon Downs racetrack in Syracuse--within the 10-county region--will be authorized to continue its existing harness racing and video lottery facility. In exchange, the Oneidas will devote 25% of their net gaming revenue from its slot machines to the state. Based on current Oneida gaming revenues, that would represent approximately $50 million annually going to the state.     

Further, the Oneidas will agree to a permanent cap of approximately 25,000 acres of land which may be taken into trust by the US Interior Department as Nation land. Oneida and Madison County will drop their pending legal claims concerning land disputes against the Oneidas, and the state will withdraw its support for those legal claims. The Oneida Nation expressly waives its rights of sovereignty over any land beyond the 25,000-acre cap, according to the governor's office.