Court ruling on gaming leaves future compacts uncertain

CNY Business Journal (1996+), Apr 27, 2001 by Dickinson, Casey J

VERNON - A Court ruling in Albany could affect the future of casinos in New York. In a case brought by the Saratoga County Chamber of Commerce against Gov. George Pataki, Judge Joseph Teresi ruled Pataki had overstepped his authority by negotiating gaming compacts without legislative approval. Pataki and predecessor Mario Cuomo had both negotiated Indian gaming compacts without seeking approval from the state Legislature for the agreements.

Pataki has filed a notice of appeal, reserving the right to contest the decision.

While the court found the compacts illegal, the plaintiff's attorney doesn't think the ruling will affect the state's two existing casinos. The length of time that has passed since the governor signed compacts would make it difficult to shut the casinos. says Cornelius D. Murray, the attorney representing the Saratoga Chamber.

The plaintiffs didn't seek to shut the casinos, says Murray, because their objectivc was to ensure legislative approval for future agreements rather than contest the past.

"Too many people are employed [at the casinos]." he says. "It would be a hardship."

If the court's ruling stands, says Murray, any future gaming compacts or amendments would require legislative approval. The case goes to the Appellate Division next and then possibly to the Court of Appeals, the state's highest court.

The 1988 Indian Gaming Regulatory Act allows federally recognized tribes to operate casinos on their lands pursuant to an agreement with the state government. The Oneida Nation and Mohawk Nation negotiated compacts for their casinos with Cuomo in the early 1990s.

The Saratoga Chamber and a number of anti-gambling groups brought a lawsuit against Pataki in 1999, after he and the St. Regis Mohawk Nation amended the compact governing their casino outside Massena. The groups contended that Pataki had no power to negotiate Indian gaming compacts without legislative approval. Courts have ruled against similar unapproved compacts in Kansas, Michigan, New Mexico, and Rhode Island.

Though the judge took no action against the Turning Stone or Akwesasne Mohawk operations, Teresi enjoined the state from spending any money toward any expansion of the casinos.

The Oneida Nation, owner of the state's first legal casino, issued a terse statement regarding the judge's ruling. "The Oneida Nation's gaming compact with New York State remains valid, and the 3,000 jobs it has helped make possible are secure. Our compact is the subject of separate litigation, and we fully expect to prevail in that case. We also expect to continue on a course to add more jobs and expand the other economic benefits created in the region by Turning Stone Casino Resort."

The plaintiffs, stresses Murray, have no intention of trying to shut down the Turning Stone or Mohawk casinos.

He says anyone trying to use the Saratoga County decision to force a shutdown of New York's casinos would have "formidable obstacles" because of the time that has passed since the operations began.