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New York Tribes Tout Casinos as Windfall

ALBANY, New York – As reported by the New York Times Union: "New York could borrow its way out of a budget deficit if it settles Indian land claims and approves new casinos, lobbyists for tribes are telling state officials.

"But before a dime could be borrowed, New York would need state and federal legislation passed over strong objections by New York tribes that oppose Gov. George Pataki's deals with out-of-state tribes.

"Tribal representatives in Albany and Washington, D.C., are focusing on lawmakers who will be asked to pass legislaton that essentially ends long-standing land claims against the state. Cash-strapped New York is offering gaming compacts and the rights to a few hundred acres instead of money to settle the litigation.

"At least one out-of-state tribe has passed out a Wall Street analyst's estimate that says its proposed Catskills casino would generate $2.6 billion in slot machine payments to the state over 21 years.

"That sum could be traded for $1.45 billion in immediate state borrowing through bond securities, the analyst estimated, according to a document provided to some lawmakers and obtained by the Times Union.

"With Pataki and five tribes reaching deals that would allow large casinos -- all with about 3,000 slot machines -- that estimate suggests the state could borrow more than $5 billion against such future slot revenues.

"…Legislative officials say the borrowing idea is under discussion but may not be possible because bond rating agencies might take a dim view of such debt. Pataki -- under whom the state has borrowed $4.2 billion against its future share of a nationwide tobacco settlement -- says he is not considering casino revenue bonding at this time…"

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