August 6, 2025
Federal Court Allows Cayuga Nation’s Lawsuit Against New York State to Proceed
The Cayuga Nation achieved a crucial legal win when a federal judge allowed its lawsuit against New York State to move forward. The Nation accuses the state of running unauthorized gambling operations, including lottery machines and terminals, on tribal land without the necessary permissions or legal agreements.
Motion to Dismiss by New York State Gaming Commission Denied
On July 30, the U.S. District Court for the Northern District of New York rejected the motion filed by the New York State Gaming Commission seeking to dismiss the lawsuit. The court stated it had jurisdiction over the case and affirmed that the Indian Gaming Regulatory Act (IGRA) does not bar the Nation from pursuing its claims in federal court.
This dispute centers on New York State’s management of Class III gaming activities—such as Powerball and Mega Millions—within the Cayuga Nation’s reservation, a federally recognized territory spanning 64,015 acres. Under federal law, hosting Class III gaming requires a compact negotiated and agreed upon by both the state and the tribe.
Representing the Nation, Clint Halftown emphasized that New York’s operation of these high-stakes games on tribal land is improper competition against the Nation’s casinos and violates both federal and tribal laws.
Cayuga Nation Claims Violation of Sovereignty Due to Lack of Compact
The Nation asserts that New York State never attempted to secure the required compact, infringing upon tribal sovereignty by continuing to offer lottery games on tribal lands without consent. Halftown highlighted that these unauthorized operations directly compete with revenue-generating tribal casinos and break federal regulations.
Failed Efforts to Reach an Out-of-Court Settlement
The IGRA, enacted in 1988, governs gaming on Native American lands, categorizing gaming into classes. Although the Cayuga Nation offers limited Class II gaming options like poker and bingo, it is not licensed for Class III activities. Halftown accused the state of disregarding these legal limitations, which threatens an important source of income for the tribal communities.
The lawsuit also points to a financial discrepancy where, under federal law, if a state operates gaming on tribal land, it must share a significant portion (commonly 60%) of the revenue with the tribe. Cayuga allege that New York has profited unlawfully from lottery terminals placed on their land without approval.
Despite attempts by the Nation to engage in dialogue with the New York State Gaming Commission to settle the matter, these overtures were ignored, leading to continued legal proceedings. The Cayuga Nation maintains that the state’s conduct undermines tribal sovereignty and violates federal gaming laws.
