New York: Paterson: Casinos Must Pay Up or Face Closure

Paterson Reiterates: Casinos Must Pay Up or Face Closure
Steve Cichon Reporting

Buffalo, NY (WBEN) - Governor David Paterson says if Indian Nations and Tribes across the state are going to withhold casino payments to the state, while turning to the courts to sue of tobacco sales tax collection, he says he'll pull the right to have the casinos open in the first place.

The Governor spoke about the issue on WOR Radio in New York City Thursday morning.

"Some of the Indian Nations have fallen behind in paying for the state participation in the casinos that they have," Governor Paterson explained.

"My view is, if they are going to fall behind at this time, is if they are going to use the court system to avoid the cigarette taxes, that we'll revoke their licenses, and they can't run the Indian casinos."

Paterson says it's quite a bit of money now owed to the state under the various gaming agreements.

"It's millions of dollars," said the Governor.

Paterson is not impressed with the argument that the state over charges for police protection and other items outlined in the casino agreements.

"They're saying its excessive now, but they had been paying it, until we took the action on the cigarette taxes, and now they consider excessive. We're going to continue to fight them. "

A federal temporary restraining order stopping the state from collecting sales tax on cigarettes sold to non-Indians on reservations is set to expire mid-month. US District Court Judge Richard Arcara is expected to rule on the case before that restraining order expires.