The Cayuga Nation has secured a significant court victory after a federal judge confirmed that its lawsuit against New York State over gaming rights is free to proceed. The Nation argues the state has been operating unauthorized gambling businesses on tribal land, such as lottery machines and terminals. Notably, the lawsuit alleges these activities occurred without consent or a legal compact.
A Motion to Dismiss Failed to Gain Traction
The US District Court for the Northern District of New York issued its ruling on July 30, rejecting the New York State Gaming Commission’s motion to dismiss the suit. The court reaffirmed its jurisdiction and was adamant that the Indian Gaming Regulatory Act (IGRA) does not prevent the Nation from bringing its claims in federal court.
The legal dispute revolves around the state’s operation of Class III gaming, such as Powerball and Mega Millions, on the Cayuga’s 64,015-acre federally recognized reservation. Federal law dictates that such high-stakes games require a negotiated compact between a state and a tribe, along with that tribe’s explicit agreement.
New York State’s operation of Class III gaming unfairly competes with the Nation’s casinos and is a clear violation of federal and Nation law.
Clint Halftown, Cayuga Nation representative
Cayuga Nation leaders insist the state made no efforts to secure such a compact, violating the Nation’s sovereignty by continuing to offer lottery games on tribal land without consent. Clint Halftown, Cayuga’s federally recognized representative, was adamant that such operations directly competed with tribal casinos and violated Federal law.
Attempts to Settle out of Court Fell Through
The IGRA, enacted in 1988, establishes the rules for gaming on Native lands and classifies different forms of gambling. While the Cayuga Nation offers few forms of Class II gaming, such as poker and bingo, it is not licensed to offer Class III games. According to Halftown, the state is blatantly ignoring these restrictions, potentially hurting a revenue stream vital to local communities.
This is about standing up for our rights and protecting the integrity of our laws, our businesses, and our community.
Clint Halftown, Cayuga Nation representative
The ongoing lawsuit also draws attention to a financial imbalance. When a state operates gaming on tribal land, federal law mandates that it share a portion of the revenue, typically 60%, with the tribe. That has not happened. The Cayuga instead argue that the state has profited from lottery terminals installed without permission.
Attempts to resolve the issue out of court have been unsuccessful. The Nation notes it reached out to the New York State Gaming Commission to discuss the matter, but was ignored. With legal action now in full swing, Cayuga leaders argue that the state’s actions violate tribal sovereignty and the regulations stipulated by federal gaming laws.