Arbitration Practice
Native American Tribe to Pay Casino
Revenues to New York
A US Appeals Court upheld the award of the American Arbitration
Association ordering the Seneca Nation of Indians to pay over USD 1
billion in casino revenues to the State of New York over the next
few years.
The Seneca Nation that owns reservations in the West of New York
is recognized as domestic dependent sovereign nation. The Seneca
tribe was permitted to open three casinos with exclusive rights to
operate gambling and arcade machines in the Western New York under
a revenue sharing agreement that provided for the disbursement of
25% of the revenues to the State.
After renewing the agreement in 2016, the Seneca Nation declared
that it was not obliged to share revenues. The State of New York
initiated arbitration for underpaid and future revenues. A 2019
award ordered the Seneca Nation to pay as much as USD 256 million
(the revenue for 2017 and 2018), as well as make "all
