Tribe says it will stop sharing casino money with state

The St. Regis Mohawk Tribe announced Tuesday that it is no longer obligated to share revenue from the Akwesasne Mohawk Casino with the state of New York. In a press release and also earlier this month at their monthly community meeting, the tribal council said the state has violated terms of a 2004 gaming compact, alleviating the tribe of their own compact agreements.

The tribe said the state has not upheld its part of the agreement because it has failed to ensure that the tribe has exclusivity rights to operate slot machines in the region.

“The state of New York is obligated to ensure that the St. Regis Mohawk Tribe has the exclusive right to install and operate slot machines in Clinton, Essex, Franklin, Hamilton, Jefferson, St. Lawrence and Warren Counties,” the tribe stated. “Violation of this obligation relieves the Tribe of its requirement to continue to make revenue sharing payments to the state of New York.”

The tribe currently shares 22 percent of casino revenue with the state. The state in turn shares it with the towns of Massena, Fort Covington, Bombay and Brasher Falls.

The first payment the tribe is withholding is for the 2nd quarter and is in the amount of $4.9 million. The withheld funds will be kept in a restricted fund “for the time being.”

The tribe did not respond to requests for clarification regarding the state’s alleged compact violation but stated earlier that the decision is not being tied to the current cigarette taxation issue between the state and New York tribes.

Chief Mark Garrow said that there is an arbitrary process attached to the gaming compact which will be a factor in how the tribe and state discussions proceed.

“We cannot continue to make payments to the state of New York, when they have not upheld their end of our agreement,” said Chief Garrow. “Under federal law, a state cannot tax a tribal gaming operation. Instead, revenue sharing is made in exchange for the exclusive right to operate slot machines. The state has failed to protect that right.”

Representatives from the towns set to receive a portion of the state’s share were reportedly “shocked” by the tribe’s announcement.