Seneca tribe approves plan for casinos in N.Y.

Carolyn Thompson

Wednesday, May 15, 2002 | 9:51 a.m.

CATTARAUGUS INDIAN RESERVATION, N.Y. -- The Seneca Indian Nation on Tuesday approved a deal with the state to build casinos in Buffalo and Niagara Falls, moving forward a key element in a historic gambling expansion undertaken by the state to raise new revenues in the wake of Sept. 11.

In voting on the Senecas' two western New York reservations, tribal members accepted the gambling plan by a vote of 1,077-976. Of the 7,118-member nation, 4,561 were eligible to vote.

Seneca President Cyrus Schindler said he was not surprised by the close count.

"It's an election. You can't predict," he said.

The 14-year compact negotiated by Gov. George Pataki and Seneca tribal leaders outlines a plan under which the Senecas would build and operate casinos in the two upstate cities, while sharing a portion of slot-machine revenues with the state.

Seneca President Cyrus Schindler estimated the venture could mean between $2 billion and $3 billion for the Senecas over the life of the contract.

The state, anticipating $300 million, initially would receive 18 percent of slot machine profits and see its share grow to 25 percent. Local municipalities would receive 6.25 percent of the state's share.

"I do believe we can be a very profitable niche in our urban core" with a Buffalo casino, Buffalo Mayor Anthony Masiello said.

He added that a casino in Buffalo would enhance existing tourist destinations in the city.

Pataki also saw the vote as a positive step toward development in the economically depressed region.

"These new facilities ... represent another major step in our continuing commitment to revitalizing western New York's economy," Pataki said in a statement.

The deal still needs the approval of the federal Bureau of Indian Affairs.

The issue of casinos has divided members of the nation for a decade. Gambling supporters envision using revenues for better schools, cultural preservation, spinoff business that would ease high unemployment and new reservation housing to replace the trailers which many Senecas now occupy on the Cattaraugus and Allegany reservations.

"I think it will create jobs not only for us but for non-Indians as well," said Mike Memmo, a supporter. "It will boost money and trade in the area for everyone."

Opponents see dealing with the state as a threat to tribal sovereignty after years of disputes with New York over taxes and land claims.

"We're going to be waiving or diminishing pieces of our sovereign immunity we now enjoy ... we're going to be giving up pieces of that or selling it," Sue John said.

Others view gambling as a blow to tradition and culture. Mike Waterman said Seneca prophecies warn against gambling.

"This is not for us. We shouldn't be doing this. Look at this day," he said, noting that it rained during much of the voting hours. "It's rainy and windy, there's dark clouds."

Gambling critics sought unsuccessfully to block the vote in a tribal court Monday, claiming the compact being presented to the nation was incomplete and could be altered later if approved.

Seneca Treasurer Arnold Cooper, who split with the administration and opposed the agreement, said the nation had yet to develop a clear plan on how casino proceeds would be used, including whether Senecas would receive "per capita" payments.

"The lack of such a plan generates considerable mistrust on the part of the Seneca people that the nation government will use casino proceeds for selfish rather than public purposes," Cooper said.

Tribal leaders said they were confident the nation would heal the divide.

"It was close but we've made the decision and it's time for the nation to move on," said Arthur Montour, "And live with decision."

The western New York casinos, along with plans for three more Indian casinos in the Catskills, were included in a historic gambling expansion approved by state legislators last year as a way to make up for revenues lost after the Sept. 11 terrorist attacks.

State leaders hope to raise $1 billion annually within about three years from the six new casinos, video betting terminals and joining the multistate Powerball lottery.