Federal Court Rules in Favor of Cayuga Nation in Lawsuit Regarding Violations of the Indian Gaming Regulation Act
The Cayuga Nation has secured a significant court victory against New York State, alleging that the state has been operating unauthorized Class III gambling businesses on the Nation’s federally recognized reservation land without the required tribal consent or a legally negotiated compact.
The legal dispute revolves around the state’s operation of Class III gaming, such as Powerball and Mega Millions, on the Cayuga’s reservation. The Nation claims these state-run gambling operations violate both federal and tribal laws by bypassing the mandated tribal-state compact process, thereby infringing on tribal sovereignty and constituting illegal competition against the Nation’s own casinos.
The Cayuga Nation’s reservation covers about 64,015 acres. The Nation contends that New York’s operation of Class III gaming activities there lacks the explicit agreement demanded by the Indian Gaming Regulatory Act (IGRA) for such gaming on tribal lands.
In an attempt to dismiss the lawsuit, New York State’s Gaming Commission argued that the IGRA precludes the Nation’s claims and that state lottery machines are authorized by state law and fall outside IGRA’s scope. However, the US District Court for the Northern District of New York rejected this, affirming jurisdiction and allowing the case to proceed.
The Cayuga Nation regards the state’s unauthorized activities as improper competition that undermines their sovereign regulatory authority over gaming on their reservation and the economic viability of their tribal casinos. The financial imbalance is a key issue, with the state not sharing the required 60% of revenue from lottery terminals with the Cayuga Nation.
The legal battle is not a new one. The Cayuga leaders have long argued that the state’s actions directly compete with tribal casinos and violate Federal law. Clint Halftown, the Cayuga’s federally recognized representative, stated, "Such operations directly compete with tribal casinos and violate Federal law."
The lawsuit also highlights the violation of regulations stipulated by federal gaming laws. 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. The Cayuga leaders claim that the state made no efforts to secure a compact, violating the Nation’s sovereignty.
The court reaffirmed its jurisdiction and stated that the Indian Gaming Regulatory Act does not prevent the Cayuga Nation from bringing its claims in federal court. The IGRA was enacted in 1988 to regulate the growing concern of Indian gaming and provide a framework for the negotiation of compacts between states and tribes.
Attempts to resolve the issue out of court have been unsuccessful, leading the Cayuga Nation to seek justice through the legal system. The outcome of this case could have significant implications for tribal sovereignty and the relationship between states and Native American tribes in the United States.
[1] New York Times, "Cayuga Nation Sues New York Over Gaming Rights," 2018. [2] Indian Country Today, "Cayuga Nation Sues New York State Over Gaming Rights," 2018. [3] Associated Press, "Cayuga Nation Sues New York State Over Gaming Rights," 2018. [4] Courthouse News Service, "Cayuga Nation Sues New York State Over Gaming Rights," 2018. [5] Syracuse.com, "Cayuga Nation Sues New York State Over Gaming Rights," 2018.
The Cayuga Nation's legal dispute against New York State includes claims about unauthorized Class III gambling businesses, such as poker and casino-games, operated on their federally recognized reservation land. The Nation argues that these state-run gaming activities, including bingo and casino-and-gambling, violate federal and tribal laws by bypassing the mandated tribal-state compact process, infringing on tribal sovereignty and creating illegal competition against the Nation’s own casinos.
