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Editorial: Don’t reward Senecas with sports betting

One money-grab at a time.

Before New York State allows in-person sports betting that could further enrich the Seneca Nation of Indians, it should require that the nation’s three Western New York casinos pay all the money they already owe to the state and, through it, to the cities of Niagara Falls, Buffalo and Salamanca.

There’s no way that Albany should move ahead with this while the Senecas continue to renege on their contractual obligations. It’s true, that would affect all of the state’s casinos, including those operated by other Native Americans, but given the Senecas’ refusal to abide by the rules to which they agreed, there is little other choice. The state certainly can’t reward them for cheating at the table.

The conflict, it must be said, began with the state’s own ineptitude. The original compact took effect in 2002 and was automatically renewed at the end of 2006 for seven years. The Senecas stopped making the agreed upon payments on 25 percent of the casinos’ annual slot machine revenues because the renewed compact made no mention of the requirement. It was remarkably careless on the state’s part not to insist that the document clearly state the Seneca’ payment obligations.

Nevertheless, the arbitrators, while acknowledging that ambiguity, ruled 2-1 in January that applicable laws made clear “that the compact was continued on the same terms and conditions that were in place immediately prior to the expiration of the compact’s initial term …”

To emphasize the point, the ruling sharply and unambiguously noted that “To conclude otherwise and interpret ‘renew’ to mean that the Nation gets exclusivity without sharing revenue would render several provisions of the compact meaningless, ignore the purpose of the parties’ agreement, challenge common sense and produce a commercially unreasonable result.” Translation: Whatever the Senecas were hoping for, they can’t get something for nothing.

The Senecas continue to be unreasonable. Despite their formal commitment to binding arbitration, they have asked the U.S. Department of the Interior to review the ruling. In the meantime, the Western New York cities that provided the Seneca Nation with sovereign territory to build their gambling palaces are doing without millions of dollars that the tribe had promised to deliver and which at least some of them sorely need.

And, now, with the push for in-person sports betting, the Senecas could profit from yet another state program while chiseling New Yorkers on another. It can’t be allowed to happen.

On Monday, a public comment period will end on a proposed regulation by the state Gaming Commission to permit in-person sports betting at New York’s four commercial casinos – located in Seneca, Tioga, Schenectady and Sullivan counties – as well as Indian casinos. (This proposal is separate from a legislative effort to legalize mobile sports betting in New York. The Cuomo administration says it is concerned that measure would violate the state constitution.)

Here’s where Gov. Andrew M. Cuomo has leverage: After the comment period is over, the Gaming Commission – an agency of the Cuomo administration – can either adopt the proposed rule at its next board meeting or heavily change the plan. That would start a new comment period. It’s an option that sounds like a very good idea.

Maybe there are other ways to induce the Senecas to be as good as their word. Regardless, until they do, the state should not be making any decisions that further enrich them.