Oneida Indian Nation of New York - GamblingCompliance · Blackjack, Craps, Roulette, or play in our world-class Poker Room"; and that at Seneca Allegany Casino & Hotel it has "68,000

Oneida Indian Nation of New York A Gambling Compliance Regulatory Report

Licensed under the Creative Commons: Attribution‐Non‐Commercial‐No Derivative Works 2.0 UK: England & Wales ‐ http://creativecommons.org/licenses/by‐nc‐nd/2.0/uk/

You are free to copy, distribute, display, and perform the work under the following conditions: Attribution. You must give the original author credit; Non‐Commercial. You may not use this work for commercial purposes. No Derivative Works. You may not alter, transform,

or build upon this work.

This is 1 example out of the 150+ regulatory profiles that GamblingCompliance provides on individual countries, states, and tribes.

Get Immediate Access today to regulatory profiles by contacting the team on [email protected] or +44(0)20 7921 9980

Each regulatory profile takes into account legal, licensing, compliance, taxation, player protection, and AML considerations issues.

Drafted to an academic standard by our in‐house legal team ‐ with the assistance of lawyers and regulators on the ground in a jurisdiction ‐ a regulatory profile provides a readymade guide for anyone seeking up‐to‐date and digestible information on the state of gaming in a jurisdiction.

Oneida Indian Nation of New York A FREE Gambling Compliance Regulatory Report

Page | 2

Contents Contents .................................................................................................................................................. 2 Executive Summary ................................................................................................................................. 3 Historical Development of Gambling ...................................................................................................... 4 The Gaming Market Today ...................................................................................................................... 5 Regional Context ................................................................................................................................. 6 Tribal Gaming In New York ................................................................................................................. 6 Non‐Tribal Gaming In New York ......................................................................................................... 7

Supervision .............................................................................................................................................. 7 Casino .................................................................................................................................................. 7 Slot machines .................................................................................................................................... 11

Statistics ................................................................................................................................................ 11 Casino ................................................................................................................................................ 11 Slot machines .................................................................................................................................... 12

Legislative Framework .......................................................................................................................... 12 Casino ................................................................................................................................................ 12 Slot machines .................................................................................................................................... 17

Licensing and Fees ................................................................................................................................ 18 Casino ................................................................................................................................................ 18

Case Law................................................................................................................................................ 24 Casino ................................................................................................................................................ 24

Recent Developments ........................................................................................................................... 27 Casino ................................................................................................................................................ 27

Regulator Contact Details ..................................................................................................................... 27 Operator Contact Details ...................................................................................................................... 27 Further Resources And End Notes ........................................................................................................ 28


Page | 3

Executive Summary The Oneida Indian Nation's gaming operation is a regional economic force, which on the back of a favorable Bureau of Indian Affairs ruling earlier this year, is well placed for future expansion. This regulatory profile provides an analysis of the historical development of gaming, its legislative and licensing framework, along with up‐to‐date key statistical data. The tribe's offshoot machine technology business is also examined. This business is unique as it is the only Indian‐owned manufacturer of cashless gaming machines.

The Oneida Indian Nation's gaming business has come some way since originating out of a need to raise funds for a tribe‐run fire department in the 1970s. Now it is an economic force in upstate New York, contributing billions of dollars to the economy and creating much‐needed employment. In this respect the gaming business exemplifies the goals of the Indian Gaming Regulatory Act and tribal economic self‐development more generally.

Celebrating 15 years of operation this year, the Oneida's Turning Stone Resort and Casino has become a major tourist destination in the region, morphing into a resort‐style gaming destination with millions of visitors per year, making the resort and casino one of the top tourist destinations in New York State.

Winning a favorable ruling earlier this year from the Bureau of Indian Affairs regarding the conversion of thousands of acres of land into sovereign tribal territory, the Oneida Nation are one of the few tribes to secure such a ruling from the Bush Administration, which has taken a tough stance on tribal gaming expansion in the US.

On the back of this favorable ruling, the tribe have plans to grow their casino operations and, therefore, this regulatory profile comes at an opportune time. It provides an analysis of the historical development of the tribe's gaming operations, examining the tribal‐state compact and ordinance, which create the legislative backbone for gambling, along with relevant licensing requirements, case law and an explanation of the issues surrounding the Bureau of Indian Affairs ruling.

This regulatory profile also includes a a statistical analysis of the Onedia Nation's gaming. It places it in a regional and state context, revealing the market share the Oneida's Turning Stone Resort and Casino takes in comparison to other tribal operations from the likes of the Seneca, Mohegan and Mashantucket tribes, as well as other non‐tribal gaming operations in the region, including the Saratoga Gaming and Racing, the Finger Lake racetrack, and Casino Niagara and Fallsview.

In addition to the casino, the Oneida have their own gaming‐related business which manufacturer, markets and sells new gaming technology. This business claims to be the only Indian‐owned manufacturer of cashless gaming machines. This regulatory profile contains an explanation of why the Oneida's originally needed to develop their own technology, includes the gaming protocol specifications the tribe's business has produced and also lists the patents the business has which relate to cashless, interactive and off‐site location gaming operation technologies.

Furthermore, this regulatory profile also lists the gaming technology manufacturers with machines located at the tribe's casino.


Page | 4

Historical Development of Gambling After a fire in 1975 claimed the lives of two of their members, the Oneida Indian Nation of New York started a bingo operation to raise money for their own volunteer fire service and other governmental services. The City of Oneida's fire department had refused to enter the tribe's land at the time of the fire.

With the passing of the Indian Gaming Regulatory Act (IGRA) in 1988, the Oneida Nation Men's Council and Clan Mothers discussed the possibility of expanding the bingo operation into a full‐scale casino. Ray Halbritter, the tribe's recognized leader and CEO of the Oneida Indian Nation Enterprises said that opening a casino was "one way for us to obtain income, resources that we desperately needed to be a sovereign people."

As such, a bingo operation was transformed into one of the most successful gaming operations in the country, following the opening of the the Turning Stone Casino & Resort in Verona, New York on July 16, 1993.

The casino operation was made possible through a gaming compact, signed by the then Governor of New York, Mario Cuomo and the Oneida's representative, Ray Halbritter in April 1993. In addition, a gaming ordinance was enacted by the tribe on February 19, 1992 and submitted to the National Indian Gaming Commission (NIGC) on October 8, 1993, which later approved it.

The compact authorizes the tribe to operate class III gaming, while the gaming ordinance authorizes the tribe to also operate class III gaming, in addition to any class II forms of gaming.

Turning Stone Casino houses high stakes bingo, poker, table games, keno and class III gaming machines.

The Oneida have sought to limit their dependence on gaming, and own and operate gas stations, convenience stores, a farm, a media company, a discount retail store and a marina amongst other enterprises. Since 1992 more than $4bn has been invested in business and government programs, creating close to 5,000 jobs.

One of the tribe's enterprises is a gaming‐related business which manufactures, markets and sells new gaming technology. The business is called Standing Stone Gaming, and claims to be “the only Indian‐owned manufacturer of cashless gaming machines”. The tribe developed this technology as a way to circumvent a New York state law prohibiting coin‐operated slot machines.

At present the Oneidas have five patents related to a “cashless computerized video gaming system and method”, one patent related to an “interactive resort operating system”, and one patent related to a “system, method, and article of manufacture for gaming from an off‐site location”.


Page | 5

The Gaming Market Today


Page | 6

Regional Context The Oneida Indian Nation of New York is in Region VI of the Nation Indian Gaming Commission's classifications. The region includes: Alabama, Connecticut, Florida, Louisiana, Mississippi, North Carolina, and New York.

The Oneida's Turning Stone Casino & Resort is one of the region’s 28 tribal gaming operations which grossed $6.399bn in total in 2007. This figure amounts to just under one quarter of total US tribal gaming revenues (approximately $26bn) in 2007.

According to the Bureau of Indian Affairs’ Final Environmental Impact Statement on the Tribe’s Trust Land Application, which was published in February 2008, the Oneida's casino generated revenues of $215m in 2004. This would equate to a regional market share, based on 2004 regional revenues ($4.82bn) of about 4.5 percent.

Tribal Gaming In New York There are three federally recognized tribes in New York currently operating class III gaming.

The Seneca Nation of Indians operate the Seneca Niagara Casino in Niagara Falls and the Seneca Allegany Casino in Allegany, with the Seneca Buffalo Casino in Buffalo, scheduled to open as a permanent casino in 2010. In addition to these class III gambling venues, the Seneca Nation also operate class II bingo on reservation lands in Cattaraugus and Allegany.

The Seneca Nation says this about the Seneca Niagara Casino & Hotel:

"You’ll find over 4,200 of the very latest and most popular slot machines with big progressive jackpots. ....If table games are your preference, choose from over 100 tables including Blackjack, Craps, Roulette, or play in our world-class Poker Room"; and that at Seneca Allegany Casino & Hotel it has "68,000 square feet, with more than 2,300 reel-spinning and video slot machines and 40 table games including Blackjack, Craps, Roulette, Caribbean Stud Poker, 3 Card Poker, Texas Hold 'em Bonus Poker, and 4 Card Poker"; and that regarding Seneca Buffalo Creek Casino "the permanent Seneca Buffalo Creek Casino plans to bring the excitement of world-class gaming and entertainment to the city of Buffalo, New York. Seneca Buffalo Creek Casino will feature: 2,000 slot machines, 45 table games."

The St. Regis Mohawks operate the Akwesasne Mohawk Casino and the Mohawk Bingo Palace. The tribe's website says:

"the Akwesasne Mohawk Casino has been open since April 1999 and is affectionately known as the North Country’s Favorite Playground. The casino employs over 500 Akwesasne community and neighboring area residents. There are over 800 Vegas slot machines, 25 tables games and a 12-table Poker Room for everyone's enjoyment....The Mohawk Bingo Palace opened its doors in 1985. The Bingo Palace is bilingual and offers high stakes bingo and 24 hour class II gaming machines."


Page | 7

The Oneida Indian Nation of New York's Turning Stone Casino has over 120,000 square feet of gaming space with the following: 87 table games, 2,258 gaming machines, 32 poker tables, keno, and high‐stakes bingo seating 1,358.

In terms of tribal casino revenue generation in the state of New York, the Oneida'sTurning Stone Casino is in second place with revenues of $215m in 2004. The Seneca's Niagara Casino is in first place with revenues of $294m in 2004. The St. Regis Mohawk's Akwesasne Casino comes in third with revenues of $20m, while the Seneca's Allegany Casino is fourth, having generated revenues of $17m in 2004.

Non-Tribal Gaming In New York The following are the types of gambling currently offered by non‐tribal owned entities in New York:

• Racinos. First legalized in 2001 and operational in 2004, this type of gambling brought in $828.18m in gross gaming revenues in 2007.

• The New York State Lottery.

• Charitable gaming, which includes the following : bell jar tickets and pull‐tab tickets; bingo; raffles and Las Vegas nights involving casino games.

In theory, authorized tribes could also offer this type of gaming if they wished.

Supervision

Casino Supervision, control and regulation of casino gaming at the Oneida Indian Nation of New York's Turning Stone Casino & Resort is a shared responsibility between the tribe and the state of New York. The Oneida Nation of New York Gaming Commission is the tribal regulatory body, while tribal gaming is regulated at a federal level by the National Indian Gaming Commission (NIGC) and at a state level through the New York State Racing and Wagering Board.

These authorities work together to make sure that gambling which occurs on tribal lands is fair, honest and in accordance with the Indian Gaming Regulatory Act (IGRA). In order to operate casino style gambling (class III gaming), the tribe were required to draft a compact with the state of New York, which occurred in 1993. Alongside this, IGRA required the tribe to draft a gaming ordinance, which was approved by the NIGC before the casino opened in 1993.

Federal Oversight: National Indian Gaming Commission Following the Indian Gaming Regulations Act (IGRA), the National Indian Gaming Commission (NIGC) was established within the Department of the Interior in 1988. This commission was created to promulgate regulations and guidelines to implement IGRA.

The NIGC is comprised of three full‐time commissioners (two of which must be enrolled in an Indian tribe), a chairman (appointed by the President with the advice and consent of the Senate), and two associate members (which are appointed by the Secretary of the Interior). In addition, no more than two members of the commission may be from the same political party.


Page | 8

Only the President ‐ or the Secretary of the Interior in the case of an associate member ‐ can remove commissioners from office before their appointed term expires on the grounds of neglect of duty, malfeasance or other good cause.

In terms of powers, the NIGC has authority to:

• Approve the annual budget of the commission and monitor class II gaming.

• Inspect and examine all premises where class II gaming is conducted.

• Conduct or cause the conduct of background investigations.

• Inspect and examine all premises where class II gaming is conducted.

• Monitor class II gaming on Indian lands on a continuing basis.

• Inspect, examine, photocopy and audit all papers, books, and records in respect of gross revenues for class II gaming.

In addition to further powers as delegated by the commission, the chairman has authority to:

• Issue orders of temporary closure of gaming activities as provided in 2713(b).

• Levy and collect civil fines as provided by section 2713(a).

• Approve tribal ordinances or resolutions regulating class II gaming and class III gaming as provided in section 2710.

• Approve management contracts for class II and III gaming, as provided by section 2710.

State Oversight: New York State Racing And Wagering Board The bulk of New York state’s oversight of Oneida gaming comes by way of the New York State Racing and Wagering Board through its board gaming inspectors. Other state oversight comes via the state enforcement agency. The board has the authority to regulate class III Indian gaming in the state in accordance with the compact entered into between the state of New York and the Oneida Gaming Commission.

The board says that part of its role includes maintaining:

"...a constant twenty-four hour presence within the Oneida Nation's Turning Stone Casino…Board Gaming Inspectors ensure that gaming operations, such as dealing procedures, internal accounting and other controls, strictly conform to the applicable provisions of the compact and their appendices. Gaming Inspectors are experienced, professional investigators who jointly monitor the gaming activities with the Nation or Tribal Gaming Inspectors, security officers and surveillance departments. Casino patrons may seek State Gaming Operations Inspectors to clarify rules of a game and for recourse after filing a complaint".

The board is comprised of three members who are appointed by the governor with the consent of the New York State Senate. The board members are appointed for six‐year terms and one of the board members is designated by the governor to serve as chairman.

Board gaming inspectors have the following powers and responsibilities:

• Board gaming inspectors must ensure compliance with the terms of the compact.


Page | 9

• Board gaming inspectors must have unfettered access to all areas of the gaming facilities during all hours of operation without notice. They must also be allowed full access to areas of the gaming facilities in which money is counted or kept, but must be accompanied by tribal gaming employees.

• The board is prohibited from having more employees at gaming facility than necessary to carry out its oversight role

• Board personnel must wear identification badges.

• Board personnel are authorized to request access to business and accounting records of the tribe's class III gaming activities, which must be promptly provided these during hours of operation.

• The board needs to receive daily inspection reports made by the tribal gaming commission's employees and copies of any patron complaints related to gaming operations on a daily basis.

The compact mandates a quarterly meeting between representatives of the board, the state law enforcement agency and the gaming commission. These are held to develop and foster a relationship for the enforcement compact provisions.

Compact section 5 permits state law enforcement agency members unfettered access to all areas of the gaming facility, as well as auxiliary facilities. This is subject to state and federal constitutional limitations. Such state law enforcement agencies are the police or any other agency New York designates in writing to the tribal gaming commission.

Law enforcement members must not be denied access to any area in or about the gaming facility in the course of their duties. The commission is also obliged to give state police casino detail officers identification badges.

The Oneida are also authorized to to form a law enforcement agency, which would have concurrent authority with the state law enforcement agency.

Tribal Oversight: Oneida Nation Of New York Gaming Commission The Oneida Nation of New York Gaming Commission (the tribal gaming commission) was established by the tribal government for the sole purpose of regulating class II and class III gaming as authorized by IGRA, the tribal gaming ordinance and the gaming compact.

The Oneida's tribal gaming ordinance created the gaming commission through article XI.

The gaming commission is composed of three members who are appointed by the Oneida tribal representative, who is the official governmental representative of the the Oneida Indian Nation of New York. That person is currently Ray Halbritter, and he has held that position since the start of casino gaming.

A gaming commissioner may be a member or non‐member of the Oneida. However, a gaming commissioner cannot be a gaming employee of any tribe. The commissioners are appointed on four‐year staggered terms. This means one commissioner’s term is designated to expire in two years, another to expire in three years, and the third to expire in four years.


Page | 10

The gaming commission must adopt written operation and management standards to govern all authorized gaming, according to article XII of the ordinance. These include gaming employee licensing procedures, accounting and cash control procedures, and internal organization and management of gaming operations.

In addition, the commission has the following powers and responsibilities:

• To investigate any aspect of a gaming operation including reviewing any records. This includes compelling any gaming operation employee or individual doing business with a gaming operation to appear before the commission and provide information, records, and other materials necessary to assist in an investigation.

• To license any gaming facility on tribal land where the tribe elect to allow class II or class III gaming.

• To enter and inspect a gaming facility at any time. Inspections may be conducted by non‐uniformed inspectors employed by and under the direction of the gaming commission.

• To require an annual audit of all gaming activities by a certified public accounting firm.

• To license all gaming employees.

• To assist the state of New York with the registration of gaming service enterprises, and to acknowledge the registrations of enterprises that wish to do business with either the tribe or a gaming facility.

• To ensure background investigations are conducted on the primary management officials and key employees of gaming operations, and oversee such officials and their management on an ongoing basis.

• To ensure the construction and maintenance of all gaming facilities, along with the operation of all gaming activities, is conducted in a manner that adequately protects the environment and the public health and safety.

• To adopt and promulgate any laws the commission deems necessary in fulfilling its regulatory requirements under the tribal gaming ordinance and the compact.

• To provide information to federal and state governments in accordance with the ordinance and the compact.

• To prohibit undesirable conduct occurring in gaming facilities, and undesirable persons from gaining admission.

• To conduct a hearing and receive evidence regarding complaints of adverse treatment by a gaming facility from the general public or employees of a gaming facility.

• The commission is obliged to coordinate and cooperate with any legitimate law enforcement effort to protect the tribe and its gaming operations from harm.

The commission is required to submit an annual written report signed by the first gaming representative to the tribe’s representative showing the following:

• A summary of the year’s activities.

• The financial condition of the gaming operations.

• Any significant problems and accomplishments.

• Plans for the future.

• Other information as the commission or the tribe’s representatives deem necessary.


Page | 11

In addition to the annual audit report requirement, the commission is also authorized to set the operating hours and days of gaming facilities (see compact section 5 (c)).

Slot machines The Oneida Indian Tribe of New York have no limited or specified amount of gaming devices they are authorized to operate under the compact. The tribe currently operate 2,258 gaming devices at Turning Stone Resort & Casino.

Please refer to the casino section of this regulatory profile for more information on the supervision, control and regulation of this type of gambling.

Statistics

Casino

The Oneida Indian Nation of New York own and operate the Turning Stone Casino & Resort in Verona, New York. The facility opened July 16, 1993. The casino features 125,000 square footage of gaming with 2,258 gaming machines, 87 table games and 1,400 bingo seats.

The casino generated revenues of $215m in 2004, according to the Bureau of Indian Affairs’ ‘Final Environmental Impact Statement on the tribe’s Trust Land Application’, which was published in February 2008. The figure today would be between $277m and $285m given the fact that as a whole, Region VI (as classified by the National Indian Gaming Commission) grew by 1.29 percent in 2006, when there were no new venues in the region and by 1.33 percent in 2007, when one new venue was added to the region.

The Bureau's report notes that earnings in 2005 amounted to $81.8m, with the casino employing 3,779 staff. According to one of the alternative plans in the report, earnings are expected to increase to $87.3m in 2011, with the casino employing 4,033 staff.


Page | 12

The casino's visitors are mainly from the state of New York, with 93 percent of casino revenues coming from New York state residents according to the Bureau of Indian Affairs’ report.

Slot machines The Oneida Indian Nation of New York's casino has 2,258 gaming machines, according to its website.

The machines are a combination of cashless machines, coin operated machines (from 1 cent to $5). The casino also has PIN‐controlled account cards for gaming.

The casino houses machines from manufacturers such as IGT and Mikohn.

Legislative Framework

Casino Generally, regulation of the Oneida Indian Tribe of New York's gaming falls under three key legislative instruments. These are the Indian Gaming Regulatory Act (IGRA), the tribal gaming ordinance, and the tribal compact with the state of New York.

The compact is divided into the compact is divided into:

• the compact proper

• Appendix A

• Appendix B

• Appendix C

• Appendix D

Tribal Gaming Ordinance The Oneida Indian Nation of New York Gaming Ordinance (No. 0‐93‐01) was enacted on February 19, 1993. It was approved by the National Indian Gaming Commission (NIGC) on January 3, 1994 and repealed the tribe’s 1992 gaming ordinance.

Other than the powers granted to the commission under the ordinance, there are no enforcement provisions in the ordinance. Enforcement powers of the tribal gaming commission, the state of New York and the NIGC are delegated under the compact.

Tribal-State Compact The compact between the Oneida Nation of Indians and the state of New York was negotiated and signed by New York Governor Mario Cuomo and Oneida tribal representative, Ray Halbritter in 1993.

It was approved by the assistant secretary of the Department of Interior on June 4, 1994, with the compact effective until terminated by written agreement from both parties, according to section 16.

In terms of physical oversight of gaming facilities, the state is permitted to have no less than two inspectors present per 24‐hour shift at a gaming facility in order to carry out its oversight responsibilities.


Page | 13

However, section 4 (e) of the compact mandates a quarterly meeting between representatives of the state, the state law enforcement agency and the gaming commission.

The jurisdiction of the state of New York over tribal lands as provided by New York law can not be altered, according to section 5 (a) of the compact. But the tribe are allowed to establish a law enforcement agency which may exercise authority over tribal gaming. However, the state law enforcement agency must agree that the tribe’s law enforcement members are adequately trained and certified.

Furthermore, the state law enforcement agency and the tribe’s law enforcement agency may act concurrently to maintain public order and safety at gaming facilities (see section 5 (d) of compact).

If the state decides to cooperate with the tribe in terms of law enforcement, the state will still maintain its role as the sole law enforcement authority at gaming facilities.

Authorized Activities Under The Ordinance Article IV of the ordinance authorizes class II and class III gaming if operated by the Oneida as a tribal enterprise or by any other person or entity authorized by the tribe. Although the ordinance does not give a specific listing of authorized games, article IV states that the tribe may operate any class III game authorized by the compact. The Oneida must have the sole proprietary ownership and responsibility for the conduct of any gaming activity on tribal land.

However, the tribe are not precluded from entering into agreements with firms to provide management or professional services to gaming facilities, including the appointment or licensing of persons or firms to act as licensees or agents of the tribe in the conduct of gaming activities.

Authorized Gaming Activities Under The Compact The Oneida may conduct class III gaming and establish one or more gaming facilities on their lands, according to sections 2 (a) and 2 (b). More importantly, under the compact, the tribe are permitted to engage in the following class III gaming:

In addition to these games, the Oneida may conduct additional class III games not authorized by the compact as set out in Appendix A (1 to 3). If the state allows a class III game that is not included in the compact, the state must give written notice of that game with its specifications to the Oneida. However, such notice must arrive within five days of the state’s allowance of the game’s specification. The tribe may adopt the state’s specification or submit their own specifications (see Appendix A).


Page | 14

If the tribe adopt the state’s specifications, the game or activity must be added to the compact and becomes effective as of the date that the tribe adopted the state’s specifications. The tribe must notify the state of the date they added the game to the compact.

On the other hand, if the tribe submits their own specifications for the game to the state, the state must notify the tribe whether it accepts or rejects these specifications within 15 days. If the state accepts specifications submitted by the tribe, the game must be added to the compact as of the date of the state’s acceptance. However, if the state does not accept these specifications, representatives of the state and the tribe must meet within five days to settle the dispute.

If state gaming officials agree to permit any other tribe to conduct a class III game or activity which is not authorized under the compact, they must notify the tribe. The tribe may then request that additional games or activities, or new specifications for existing games or activities, be added to the compact. But the tribe must make this request by submitting written specifications of the games or activities to the state.

After the state receives the request from the tribe, it must notify the tribe that it accepts or rejects the additional gaming or activities within 15 days. If the state accepts the game or activity, the game or activity and its specifications must be added to the compact as of the date of the state’s acceptance.

If the state does not accept the game or activity or its specification, representatives of the tribe and the state must meet within five days after the written request and must negotiate in good faith whether the new game or activity may be added. If the parties cannot agree, the arbitration procedures of section 14 do not apply to the dispute and the request by the tribe is considered a request to modify the compact.

Operations And Management Standards Under The Ordinance The gaming commission may adopt written standards of operation and management to govern all authorized gaming, according to article XII of the ordinance. In addition, the ordinance requires the written standards to include the following:

• The rules of each game of chance operated by the tribe.

• Permissible methods of payment.

• Procedures to license gaming employees, including procedures for conducting background investigations on employees and management officials, and training and instructing gaming employees.

• Internal organization and management of the gaming operations.

• Security and surveillance methods.

• Accounting and cash control procedures.

• Other record keeping requirements.

Moreover, according to the ordinance, the standards must protect the public interest in the integrity of the gaming operations, and should reduce the dangers of unsuitable, unfair or illegal practices and methods in the conduct of gaming.


Page | 15

The tribe or the gaming facility must use a certified public accounting firm to conduct an annual audit of all gaming facilities. The results of each audit must be provided to the gaming commission (see article VIII (1) of ordinance).

In addition, under article VIII (2) of the ordinance, all contracts for supplies, services or concessions worth more than $25,000 per year must be included in the annual audit.

Operations And Management Standards Under The Compact Gaming facilities are required to follow the standards of operation and management found in Appendix B of the compact, as negotiated and agreed on by the Oneida tribe and the New York State Racing and Wagering Board. Gaming facilities must maintain complete, accurate and legible records of all transactions relating to the revenues and costs.

They are also required to maintain general accounting records on a double entry system of accounting with transactions recorded on an accruals basis. In addition, gaming facilities must keep detailed supporting subsidiary records.

They should adopt standard forms of accounting to ensure consistency, comparability, and effective disclosure of financial information. The detailed, supporting and subsidiary records must include the records of all patrons’ checks initially accepted, deposited, or returned by gaming facilities. These checks must be designated as “uncollected” and ultimately written off as “uncollectible”.

They must maintain statistical game records to reflect the drop and win amounts for each table, each game, and each shift. Gaming facilities must also maintain records of investments in property and equipment used directly in connection with their operation. In addition, they must keep records which identify the purchase, receipt and destruction of gaming chips and plaques.

Gaming facilities are required to keep all accounting records for at least seven years from their respective dates. Gaming facilities are required to conduct annual audits of their financial statements in accordance with generally accepted auditing standards, and the audits must be done by qualified independent certified public accountants approved by the commission (see Appendix B).

Furthermore, the annual financial statements must be prepared on a comparative basis for the current and prior fiscal year. They must also present the financial position and results of operations in a way that confirms with generally accepted accounting principles.

In addition, independent accountants must submit letters or statements to state gaming officials certifying that the financial statements of gaming facilities fairly present the financial position and results of operations. Such certified statements must conform with generally accepted accounting principles.

Internal Control Systems Along with auditing and record keeping standards, appendix B of the compact sets out the systems of internal control requirements. Gaming facilities are required to submit descriptions of their systems of internal procedures to the tribal gaming commission and state gaming officials.

In addition, they are required to submit administrative and accounting controls before gaming operations begin and before changes in previously submitted systems become effective. The


Page | 16

submissions must contain both narrative and diagrammatic representations of the internal control systems such a gaming facility will utilize.

Such a submission must be signed by the person responsible for its preparation, along with a report from the independent public accountant stating that the submitted system conforms in all respects to the principles of required internal control.

In terms of monitoring activities, the compact requires gaming facilities to install closed‐circuit television systems on their premises, according to specifications prescribed by state gaming officials.

The CCTV must include light sensitive cameras with zoom, scan, and tilt capabilities to effectively monitor the following in detail and from various vantage points:

• The gaming conducted at each gaming table in the gaming facility and the activities in gaming facility pits.

• The operations conducted at and in the cashier’s cage.

• The count processes conducted in the count room that conform with the operation and management standards.

• The movement of cash, gaming chips, drop boxes, and drop buckets in the premises.

• The entrances and exits to the gaming facility and the count rooms.

• Other areas as the commission and the board agree to designate.

According to the compact, gaming facilities must, at a minimum, establish certain departments to manage and oversee the activities of casinos. Facilities must establish the following departments:

• A surveillance department supervised by a director of surveillance.

• An internal audit department supervised by an internal audit manager.

• A gaming facility department supervised by a gaming facility manager.

• A credit department supervised by a credit manager or director of credit.

• A security department supervised by a director of security.

• An accounting department supervised by a director of gaming facility accounting who reports directly to the chief financial officer.

• A cashier’s cage supervised by a cage manager.

Gaming facilities must maintain surveillance logs of all surveillance activities in their monitor rooms. Monitor room personnel must maintain these logs, and the logs must be made available for inspection in connection with any investigation.

Employees or agents of gaming facilities assigned to monitor activities must be independent of gaming facilities, security, and cashier cage departments.

In addition to a system of internal controls for auditing and recording maintenance procedures, gaming facilities must also have systems of internal control that include the following:

• Administrative control that includes the plan of organization and the procedures, as well as records that are concerned with decision processes leading to management’s authorization of transactions.


Page | 17

• Accounting control which includes the organization plan and procedures and records concerned with the safeguarding of assets and the reliability of financial records.

Dispute Resolution And Jurisdiction A method for non‐judicial dispute resolution of issues concerning the compact is specified in section 14 of the compact. However, the dispute resolution procedure excludes issues concerning the games and activities permitted under the compact. All other issues concerning the compact must be resolved by a binding arbitration.

The party seeking arbitration must serve upon the other party a notice of demand to arbitrate and the notice must specify the nature of the dispute, the particular provision of the compact or its appendices at issue and the proposed relief sought by the party demanding arbitration (section 14).

Representatives of the state and the Oneida must meet within five days of receipt of the written notice in an effort to resolve the dispute. If the dispute is not resolved 30 days after the notice is served, the dispute will be determined by an arbitrator using the rules of the American Arbitration Association. If there is a dispute as to which arbitrator to use, each party will select one arbitrator and the arbitrator will then select a third arbitrator.

The losing party will pay arbitration costs, unless the decision of the arbitrators specifies otherwise. Each party, however, must bear their own costs and attorneys’ fees.

More importantly, the decision of the arbitrators is final, binding and not open to appeal. Failure to comply with the judgment and award within the specified time for compliance is deemed a breach of the compact.

Compact Amendments And Renegotiations Amendments to the terms and conditions of the compact are permitted following written agreement by both parties, according to section 15 (a) of the compact.

However, requests to amend or modify the compact by either party must be in writing, specifying the manner in which a party requests the compact be amended.

Representatives of the parties must meet within five days of the request and negotiate in good faith whether and on what terms and conditions the compact will be amended or modified. If the parties cannot agree within 30 days of the request, either party may submit the matter directly to arbitration, as specified in section 14.

Slot machines In addition to their gaming operations the Oneida Indian Nation of New York is ‐ via the Standing Stone Gaming brand ‐ “the only Indian‐owned manufacturer of cashless gaming machines”, according to itswebsite. The Oneida developed this technology as a way to get around a New York state law prohibiting coin‐operated slot machines.

Standing Stone Gaming is a supporter of GSA Standards.

At present Standing Stone Gaming has two open gaming protocols:

1. Opening Gaming Protocol Specification Version 2.3


Page | 18

2. Opening Gaming Protocol Specification Version 2.4.0

At present the Oneidas have five patents related to a “cashless computerized video gaming system and method”, one patent related to an “interactive resort operating system”, and one patent related to a “system, method, and article of manufacture for gaming from an off‐site location”. Links to these patents are found below:

1. 7,329,187 Cashless computerized video game system and method 2. 7,128,652 System, method, and article of manufacture for gaming from an off‐site location 3. 7,022,017 Interactive resort operating system 4. 6,280,328 Cashless computerized video game system and method 5. 6,089,982 Cashless computerized video game system and method 6. 5,800,269 Cashless computerized video game system and method 7. 5,674,128 Cashless computerized video game system and method

Licensing and Fees

Casino

Licensing Conditions Under The Ordinance The Oneida Nation of New York Gaming Commission is permitted to issue a separate license to each place, facility, or location on Oneida land where the tribe choose to engage in class II or class III gaming, according to ordinance article X.

In addition, the commission must also conduct background investigations on primary management officials and key employees of gaming operations before issuing gaming licenses. The commission is also authorized to oversee key employees and primary management officials on an ongoing basis.

A gaming facility may not employ any person whose prior activities, criminal record, reputation, habits or associations pose a threat to the public interest or effective regulation of gaming (see ordinance article IX). A gaming facility is also prohibited from employing anyone who creates or enhances the dangers of unsuitable, unfair or illegal practices and methods and activities in the conduct of gaming.

Article IX of the ordinance also prohibits a gaming facility from employing anyone who supplies materially false or misleading information in connection with a background investigation.

Licensing Conditions Under The Compact No person can commence or continue employment as a gaming employee unless they hold a valid gaming employee license issued by the gaming commission, according to section 6 (a) of the compact. Such a license must comply with the licensing requirements of the compact.

Applicants for gaming licenses must submit applications in quadruplicate to the gaming commission on a form prescribed by the commission and New York state gaming officials.

An application must contain information, documentation and assurances as may be required, including the following information:


Page | 19

• Applicant’s personal and family history.

• Applicant’s personal and business references.

• Any criminal conviction records and business activities.

• Applicant’s financial affairs and gaming industry experience.

• Applicant’s gaming school education and general education.

• Two sets of the applicant’s fingerprint cards.

• Three current photographs.

• A signed release authorizing the necessary background investigation.

• A licensing fee.

A gaming facility must provide one copy of a license application accompanied by a current photograph to the commission, and two copies of the application to the state gaming officials (see compact section 6 (b)). An application must be accompanied by fingerprint cards, current photographs, any relevant fee, and the signed release form for the background investigation.

Background Investigations Upon receipt of an application, state gaming officials must forward one of the photographs to the state law enforcement agency, which will conduct a background investigation of the applicant (see compact section 6 (d)).

State gaming officials must forward fingerprint cards and the appropriate fingerprint processing fee to the state law enforcement agency for a fingerprint‐based search of the state criminal history files, and to the FBI for a fingerprint‐based search of the federal criminal history files.

After running an applicant’s fingerprint checks, the state law enforcement agency must report the results of the investigation to state gaming officials. The state law enforcement agency must also forward the results of the criminal records searches to state gaming officials.

The state law enforcement agency must maintain the fingerprint records on a full‐search and retain basis until it is notified that the applicant is no longer employed in class III gaming (see section 6 (d)).

Section 6 (e) (1) provides that the commission may deny a gaming employee license to any applicant who:

• Is under the age of 18.

• Has been convicted of a felony.

• Has been convicted of any form of bookmaking or other form of illegal gaming.

• Has been convicted of any fraud or material misrepresentation in connection with gaming.

• Has been found to have violated any law, rule or regulation relating to gaming for which termination or revocation of license might be imposed.

• Has been determined a person whose prior activities, criminal record, or reputation, habits and associations pose a threat to the effective regulation of gaming.

• Creates or enhances the chances of unfair or illegal practices, methods, and activities in the conduct of authorized gaming.

• Has failed to provide any information required to investigate an applicant for a gaming employee license; has failed to reveal any fact material to such application, or has furnished any information, which is untrue or misleading in connection with an application.


Page | 20

The commission must deny licenses to gaming employee applicants who are denied certification by the state gaming officials (see section 6 (e) (2)).

The commission must send appropriate notification to the gaming facility, state gaming officials, and the applicant if it approves a license (see section 6 (e) 3)). This notification must include the name of the license and the license number.

Gaming facilities are required to send any information that might have a bearing on applicants’ eligibility regarding licensing to the commission and to state gaming officials (see section 6 (e) (4)).

State gaming officials are authorized to issue gaming employee certification to any applicant (see section 6 (f) (1)). However, they may not issue certification if an applicant does not meet any of the criteria set out in section 6 (e) (1).

In addition, state gaming officials are required to send appropriate written notice of certification or denial of certification to the commission. If they deny certification, they are required to send a notice to the applicant, including reasons for the denial (see section 6 (f) (2)).

Any information received by the gaming facility that could have a bearing on the eligibility of any applicant or licensee for certification must be immediately submitted to state gaming officials and the gaming commission (see section 6 (f) (3)).

State gaming officials may issue a certificate of temporary license for a gaming employee applicant, but a gaming facility must first request the commission issue it. The commission then requests state officials issue a temporary certificate for an applicant (see compact section 6 (g)). In order to obtain a temporary certificate, the commission must submit the relevant application, including the applicant's fingerprints to state gaming officials.

State gaming officials will issue a temporary certification for any applicant whose application does not disclose grounds reasonably sufficient to disqualify them (see compact section 6 (g)).

All applications for temporary certification submitted within four months of the compact being established must be granted or denied within seven business days of the request by the commission. All requests for temporary certification submitted four months after the compact was established must be granted or denied by state gaming officials within five business days of the request by the commission.

Furthermore, a temporary certification remains in effect until it is either suspended or revoked , or until an annual certification and license are issued.

If state gaming officials do not issue a temporary certification, they must notify the commission with the reasons for the denial. However, the refusal to issue a temporary license should not interfere with the processing of the application for an annual license and certification (see compact section 6 (e)).

The commission has the sole discretion to issue or deny a license after it has received a certificate of eligibility from state gaming officials. If the commission does issue a gaming license, it is valid for 12 months unless otherwise extended by the commission (see section 6 (h)).


Page | 21

A licensed applicant who has requested a renewal may continue to work under the expired license until action is taken on their renewal application (see compact section 6 (h). However, under section 6 (i), an applicant for a license renewal must submit a renewal application to the gaming facility on forms approved by the commission. The applicant is not required to resubmit previously submitted historical data.

No additional background investigation of the applicant for renewal is required unless new information concerning the applicant's suitability or eligibility is received by the gaming facility, the commission, state gaming officials or the state law enforcement agency.

If state gaming officials deny license certification, they must notify the applicant, the commission, and the gaming facility. Furthermore, state gaming officials must also explain their reasons for denial (see compact section 6 (j)). State gaming officials are also authorized to suspend, revoke or deny a renewal of gaming employee certification, but must set a notice and a hearing before taking such action.

However, state gaming officials are not authorized to revoke, suspend or deny renewal without notice and hearing as provided by the State Administrative Procedure Act.

The action of state gaming officials in denying an initial annual certification is reviewable in the state’s supreme court, but the applicant must petition for a review (see compact section 6 (j)).

If state gaming officials suspend or revoke a gaming certificate, then the commission must also suspend or revoke the license of the gaming employee. Section 6(k) permits the commission to deny, suspend and revoke a gaming license, but it must notify the gaming facility, the applicant and state gaming officials. In addition, the commission must also explain its decision to deny, suspend or revoke a license.

Gaming Resource Suppliers Any enterprise providing gaming services, gaming supplies or gaming equipment to an Oneida gaming facility is required to hold a valid gaming service registration issued by the state gaming agency, according to compact section 7 (a).

A gaming service registration applicant must submit a completed application in quadruplicate to the commission. The commission must then send two copies of the application to state gaming officials (see section 7 (a)).

An application must contain information and documents as required state gaming officials in order to conduct a background investigation to determine suitability (see compact section 7 (b)). The application should identify all of the applicant’s principals and should include the following information:

• The principal’s personal, business and family history.

• The principal’s personal and business references.

• Any criminal conviction record and business activities.

• Any financial affairs and prior gaming industry experience.

• The principal’s source of funds used to acquire an interest in the enterprise.

• The principal’s general education background.


Page | 22

• A signed release form prescribed by the board authorizing a background investigation.

• Two sets of fingerprint cards with any appropriate fee and two current photographs.

After receiving the application material and information form, state gaming officials must forward the application along with one photograph to the state law enforcement agency, which will conduct a background investigation of the applicant (see compact section 7(d)).

State gaming officials must forward fingerprint cards and the appropriate fingerprint processing fee to the state law enforcement agency for a fingerprint‐based search of the state criminal history files, and to the FBI for a fingerprint‐based search of the federal criminal history files.

The state law enforcement agency must report the results of the applicant’s fingerprint checks and forward the results of the criminal records searches to state gaming officials. It must also maintain the fingerprint records on a full search and retain basis until it is notified that the applicant is no longer employed in class III gaming.

State gaming officials may issue a registration to any gaming service enterprise unless it:

• Has been convicted of a felony.

• Has been convicted of any form of bookmaking or other form of illegal gaming.

• Has been convicted of any fraud or material misrepresentation in connection with gaming.

• Has been found to have violated any law, rule or regulation relating to gaming for which termination or revocation of license might be imposed.

• Employs a person whose prior activities, criminal record, or reputation, habits and associations pose a threat to the effective regulation of gaming.

• Creates or enhances the chances of unfair or illegal practices, methods, and activities in the conduct of authorized gaming.

• Has failed to provide any information required to investigate an applicant for a gaming employee license; has failed to reveal any fact material to such application, or has furnished any information, which is untrue or misleading in connection with an application.

• Has a principal who is disqualified by virtue of the list above or is under the age of 18.

State gaming officials must issue a gaming service registration if they approve an application. They must then send appropriate written notice to the applicant, the commission and the gaming facility.

If state gaming officials deny a registration application, they must notify the applicant, the commission, and the gaming facility in writing of the reasons for the denial.

The gaming commission is allowed to issue a temporary gaming service registration, but the commission must first request and receive a temporary certificate of eligibility from state gaming officials (see compact section 7 (f)).

State gaming officials will issue a temporary gaming service registration pending the processing of the application if there is no reasonably sufficient reason to disqualify the applicant, and the fingerprint check of each principal made by the division at the request of the board does not disclose grounds for disqualification.


Page | 23

If they are submitted within the first four months of the compact’s approval, all applications for temporary gaming service registrations must be granted or denied within seven business days of the commission’s request and board’s receipt of the application and related documents.

If they are submitted more than four months after the compact’s approval, all applications for temporary gaming service registrations must be granted or denied within five business days of the commission’s request and board’s receipt of the application and related documents.

A temporary gaming service registration remains in effect until it is suspended, revoked or an annual registration is issued. If state gaming officials deny the issuance of a temporary gaming service registration, they must notify the commission along with the reasons for the denial. Such a denial should not interfere with the processing of the application for an annual gaming registration.

A gaming service registration issued by state gaming officials is effective for up to a year unless a longer period is allowed by the board. However, a registrant who has properly applied for a renewal can continue to provide services or equipment under an expired registration until final action is taken on the renewal application (see section 7 (g)).

An applicant seeking a service registration renewal is required to submit a renewal application and information in quadruplicate to the commission (see compact section 7 (h)). The commission will then forward two copies of the application to state gaming officials and a copy to the gaming facility.

Applicants do not need to resubmit previously submitted historical data. No additional background investigation will be conducted so long as no new information about an applicant has come to light regarding the applicant’s continuing eligibility or suitability for a gaming service registration. State gaming officials must renew a gaming service registration unless the new information is sufficient to disqualify the applicant.

State gaming officials can deny a gaming services registration, but they must notify the applicant, commission and gaming facility in writing explaining the reasons (see compact section7 (j)). State officials are authorized to revoke or suspend an already registered applicant, or deny a renewal of any registration for any compact violation, if new information comes to light that an applicant should not have received registration certification in the first place.

Any state official action related to denying an initial application is reviewable according to article 78 of the New York Civil Practice Law and Rules in the state supreme court upon petition by the applicant.

The tribe are required to notify state gaming officials in the event that the tribe form an entity that they will wholly own and operate to provide gaming services, supplies or equipment to a gaming facility (see compact section 7(g)).

Financial Services Suppliers The tribe’s gaming operations are required to notify state gaming officials of any enterprises that provide non‐gaming goods, supplies, services, or equipment that exceed $50,000 in value in a single year.


Page | 24

The officials and state law enforcement agency will then investigate these enterprises to determine suitability and may bar enterprises from providing services if they are judged unsuitable.

Enterprises can be judged unsuitable if they or their representatives’ prior activities, criminal record, reputation, habits or association are seen to pose a threat to the effective regulation of gaming. However, state officials’ actions are reviewable in the state’s supreme court upon petition by the enterprise (see section 8).

Fees The gaming commission is authorized to assess the fee for processing an initial gaming employee license application and each renewal (see section 6 (c)). State gaming officials are permitted to establish an appropriate fee for processing an applicant’s fingerprint cards. Such a fee must be made payable to the board upon submission of the application and is non‐refundable. Each application for registration and renewal must be accompanied by a fee payable to the commission in an amount set by the commission (see section 7(c)).

Use Of Gaming Revenues Under The Ordinance Net revenues received by the Oneida for any gaming activity can be used for the following, according to section 2710 (b) of IGRA and article VI of the ordinance :

• To fund Oneida government operations or programs.

• To provide for the general welfare of the Oneida and their members.

• To promote Oneida economic development.

• To help fund operations of local government agencies.

Use Of Gaming Revenues Under The Compact There is nothing in the compact that specifies what gaming revenues should be used for. However, the compact must be approved by the NIGC and conform with section 2710 (b) of IGRA. Consequently, the proscribed use of gaming revenues by IGRA must also be adopted by the compact.

The Oneida‐state of New York compact signed by Governor Mario Cuomo and the tribe do not have a revenue‐sharing provision. The tribe are allowed to operate class III gaming without sharing any revenue with the state of New York and without paying anything in property or sales tax.

The tribe are also not obligated to share their gaming revenue with the town of Verona, New York where the tribe’s casino resort is located. However, the town and the tribe have agreed that since there is no revenue‐sharing provision in the compact, the tribe would help the local government fund some projects.

Case Law

Casino In 2006, an equal rights advocate group, Upstate Citizens for Equality (UCE) challenged the validity of the the Oneida Indian Nation of New York's compact agreement with the state. The group brought


Page | 25

action against Governor George Pataki (Peterman v Pataki, 798 NYS2d 347 [Sup Ct]) and the state of New York seeking to invalidate the compact signed by Governor Mario Cuomo in 1993.

New York State Supreme Court ruled that the compact authorizing class III gaming at Turning Stone Casino & Resort is invalid. The court stated that Governor Cuomo had overstepped his authority because he did not get the state’s legislature’s approval of the compact. Following the state supreme court’s ruling, the Oneida took their appeal to the U.S. Supreme Court. The tribe argued that the state had no jurisdiction to issue the ruling because the federal government regulates tribal gaming and as a tribe they were immune to lawsuit without having waived their immunity. However, the Supreme Court declined to hear the case.

As a result of the state court ruling which invalidated the 1993 compact, the Department of the Interior (DOI) informed the Oneida that it would reconsider the compact. In June 2007, the DOI affirmed its approval of the 1993 gaming compact between the Oneida and New York State. The agreement continues to be valid for the purposes of IGRA and allows Turning Stone Resort & Casino to continue to offer class III gaming.

The Oneida Indian Tribe of New York are also involved in several other ongoing litigations. Some of these litigations date as far back as 1974. In that year, the tribe joined with the Oneida tribes from Canada and Wisconsin in a lawsuit claiming that more than 250,000 acres of Oneida land in Madison and Oneida counties had been illegally purchased by New York State in the eighteenth and nineteenth centuries.

After years of failed negotiations between the parties, the U.S. District Court ruled in May 2007 that the tribe could not reclaim title to the land they sold more than a century ago, but they could be entitled to some of the profits the state made reselling that property.

In May 2008, the Oneida appealed the federal court’s decision that they could not reacquire the 250,000 acres. At the same time attorneys for New York challenged the lower court’s determination that the Oneida are entitled to millions of dollars in compensation. Both appeals are currently pending in the 2nd U.S. Circuit Court of Appeals.

A separate long‐running litigation with the city of Sherill came to a close in 2005 when the Oneida and the city negotiated an agreement whereby the tribe would pay city property taxes. The legal battle against the city stems from the Oneida’s assertion of their sovereign immunity against city taxation. The city had sought to impose property taxes on a gas station owned by the Oneida situated on tribal land within the city limits. The land in question had been sold to non‐Indians 200 years ago without the federal government’s approval.

The land remained with the purchasers for about 200 years before the tribe reacquired it. After reacquiring the land, the Oneida sought and obtained court declaration that the reacquired land was under the tribe’s sovereign immunity and exempt from taxation.

On appeal the Supreme Court ruled eight‐to‐one that the reacquired land was not tax exempt under sovereign immunity. The court stated that the Oneida had long ago relinquished their governmental interest in the land and cannot require sovereign immunity through an open market purchase of the land (City of Sheril v Oneida Indian Nation).


Page | 26

As a result of the ruling, the tribe entered into an agreement to pay the city $59,814 in property taxes dating from 1997 to 2005, and will pay all property taxes in the future. In a related issue, the tribal land situated in Oneida and Madison counties in New York has been the subject of the same debate. Oneida County officials are looking to enter into the same type of agreement with the Oneida tribe about imposing property tax on land owned by the tribe that is within the county.

The county wants the tribe to at least pay for public services the Oneida benefit from. Adding to the dispute is the fact that the Oneida submitted an application to the DOI requesting the Secretary of the Interior acquire some 17,370 acres in trust for the tribe.

If approved, the trust land would be exempt from state and city taxation. The proposed land is in Madison County and Oneida County and includes land on which the Turning Stone Casino & Resort is on. To date, taxes owed on the casino and other buildings in the resort is assessed at about $340m.

In May 2008, the DOI agreed to put into trust 13,004 acres of the 17,370 acres requested by the Oneida. The decision by the DOI prompted four lawsuits contesting the constitutionality of its decision.

The state of New York filed a law suit in the federal circuit court. Madison and Oneida counties, which wanted to join in the state’s federal lawsuit, filed a separate action in the federal court. A citizen’s advocate group, the Upstate Citizens for Equality also filed a lawsuit in the federal district court in upstate New York. Another lawsuit was filed in Washington D.C. by the Stockbridge‐Munsee Band of Mohican Indians.

The tribe, which lived in the Oneida area before moving to Wisconsin, laid claim to some 4,000 acres of the land which the DOI put into trust. The cases have been consolidated and are currently pending in the federal court as Upstate Citizens for Equality, UCE, et al v. United States of America, et al. To date, the case is waiting to be decided by the federal district court for the western district of New York. The case has been assigned number 08‐CV‐00633 and is currently assigned to Southern United States District Judge McCurn.

The case challenges the authority of the DOI to take any land into trust for the Oneida Indian Nation of New York. The plaintiffs specifically make two claims. One is that the DOI acted and will continue to act in excess of its statutory jurisdiction, authority, or limitations, or short of statutory right in taking any land identified in the defendant’s notice of intent into trust under the Indian Reorganization Act of 1934.

The plaintiffs also claim that the DOI acted without observance of procedure required by law in rendering its May 2008 determination to take land into trust under the Indian Reorganization Act of 1934. Their second claim is that the defendant’s determination that the 1993 tribal‐state compact between the state of New York and the Oneida remains in effect under IGRA, contrary to a state court invalidating the compact.

It is important to point out that the tribe’s Turning Stone Casino & Resort is located on part of the land that the DOI put into trust. To date, the Oneida continue to operate class III gaming at Turning Stone, but it is uncertain how the federal court will rule on the issue.


Page | 27

Recent Developments

Casino Earlier this year, the Oneida Indian Nation of New York won a rare victory against the Bush administration, which has taken a tough line against the expansion of tribal gaming in the US.

The Oneida are now able to convert thousands of acres they own into sovereign tribal territory. Under a decision announced by the Federal Bureau of Indian Affairs in March, the Oneida Nation will be allowed to take more than 13,000 acres into a federal trust for them to govern. Significantly, that land includes the tribe’s casino, now in the midst of a significant expansion.

The tribe had talked of closing their Turning Stone Casino & Resort if federal officials rejected their land‐into‐trust application. If the casino were to close, that could have cost 5,400 jobs and led to a drop in the population in two upstate counties, according to the Bureau of Indian Affairs. Tribal officials also claimed they would no longer have had the revenue needed to pay taxes on more than 17,000 acres they own, which would have led to a foreclosure process.

However, with the favorable ruling, it's likely the tribe will attempt to grow their casino operation. Before the liquidity crisis, the tribe had planned to build an 18‐hole championship golf course, a large nightclub and a 200 to 300 room hotel connected directly to the casino. There were even plans for a helicopter pad, most likely for use by the gambling resort’s high‐rollers. It remains to be seen how the financial crisis has impacted these plans.

The application was met with opposition, with local authorities fearing a loss in local taxes, as sovereign tribal land is tax exempt. Officials in Madison and Oneida counties tried to limit the amount of land the tribe could put into trust to just 1,000 acres. It was estimated that the two counties would lose $2.1m a year in property taxes, according to the Bureau of Indian Affairs. Officials from these two upstate counties had previously been in disagreement with the tribe over the taxation status of the tribe's casino, which they argue should be paying some local taxes.

“That’s totally unacceptable,’’ Oneida County legislator Michael Hennessy said in a published report after the decision was made public.

Regulator Contact Details Oneida Indian Nation Gaming Commission 223 Genesee Street Oneida, NY 13421 Phone: (315) 829‐8900

Operator Contact Details Turning Stone Casino: 5218 Patrick Road Verona, New York 13478


Page | 28

Casino Switchboard: (800) 771‐7711 / Available 24 hours a day www.turning‐stone.com

Further Resources And End Notes This regulatory profile was written from information gathered from GamblingCompliance articles, the tribal‐state compact, gaming ordinance, along with information gathered from the Oneida Nation's official websites and the New York State Wagering and Racing Board.

The Bureau of Indian Affairs’ Final Environmental Impact Statement on the Tribe’s Trust Land Application, published in February 2008, was also used as a source for statistics and recent developments information.

Further resources included an article co‐authored by the Oneida Nation's representative (Ray Halbritter), from which the quote included in the historical development section of this profile is sourced from. The article's details are:

Carpenter, K. A . and Halbritter, R. (2001), "Beyond the Ethnic Umbrella and the Buffalo: Some Thoughts on American Indian Tribes and Gaming", Gaming Law Review, Volume 5, Number 4, page 311‐327.

Documents

Oneida Indian Nation of New York - GamblingCompliance · Blackjack, Craps, Roulette, or play in our world-class Poker Room"; and that at Seneca Allegany Casino & Hotel it has "68,000