New York Hands $418 Million From Seneca Payout to Fracking Billionaire

This past Monday, Seneca Nation of Indians tribal councilors voted unanimously to pay the State of New York a reported $564 million from casino revenues. This decision comes just days after New York State Governor Kathy Hochul subpoenaed KeyBank, successfully freezing Seneca bank accounts in what Seneca President Matthew Pagels called a “clear act of aggression” that has “victimized thousands of people, Seneca and non-Seneca.” With their bank accounts frozen, elders cannot buy medicine and parents cannot buy groceries for their families. 

Less than 24 hours after the Seneca Nation of Indians voted to pass their resolution, Governor Kathy Hochul issued a self-congratulating statement, saying “Since the beginning of my administration, I have been committed to resolving this dispute and securing the funds that State and local governments are owed… Upon taking office, I sought to negotiate in good faith, and we have met every hurdle.” In her statement, Hochul makes no mention of her unethical strong arm tactics used to ultimately secure the payment, but she does clearly state how the money will be used; saying “These funds were generated in Western New York, and I am directing the State’s share, which is more than $418 million, to the new Buffalo Bills stadium.” How altruistic of her.

For those unfamiliar with this bizarre twist, the New York Times reported Monday that $850 million in tax payer dollars would be used to finance the $1.4 billion stadium. Scores of taxpayers and lawmakers are not keen to the idea of being slapped by such a high bill, which Mark Rosentraub, professor of sport management at the University of Michigan, told the New York Times is “nothing more than a subsidy to the N.F.L.” So it makes perfect sense that Governor Kathy Hochul would banish nearly half of this $850 million burden from taxpayers in one shrewd masterstroke, winning the day in her hometown of Buffalo, NY.

What is most surprising is the lightning speed at which Governor Kathy Hochul allocated the large sum of $418 million. It’s no secret that the government takes a long time to plan and execute decisions in regards to economic spending. Speculatively, the allocation of such a large sum at the drop of a hat is questionable; unless, perhaps, the state somehow knew ahead of time that the Seneca Nation tribal council would vote on Monday in favor of paying the state. Of course, the state did know that they would subpoena KeyBank to freeze Seneca Nation bank accounts. 

This speediness of big decision making is reminiscent of the fact that the original gaming compact between New York State and the Seneca Nation of Indians was signed June 2002, just two months after the end of a nine year long major land claim case between the Seneca Nation and New York State. The connection of these two items has been confirmed by former Congressman John LaFalce, as well as (former) Seneca Nation of Indians President Duane Ray; who told the Buffalo News that (former) New York State Governor Pataki’s lead negotiator “has taken the position that until and unless a settlement is reached regarding the land claims of the Seneca Nation, which are being litigated, that you will not agree and approve a gaming compact.”

In regards to the public subsidy for the stadium, the aforementioned New York Times article says “The announcement came after “months of secretive back-room negotiations” among Gov. Kathy Hochul, county officials and the team owners…” According to Forbes, Buffalo Bills owner Terry Pegula has a whopping net worth of $5.8 billion, and his fortune was made through fracking. In fact, Pegula’s fracking company JKLM Energy recently attempted to build a fracking wastewater treatment plant at the headwaters of the Allegheny River, which runs through Seneca Nation territory. Seneca led opposition resulted in the project being abandoned.

It seems almost a bit too poetic that the short-lived Seneca victory against Pegula’s plans for polluting their river has now been punctuated by the Seneca Nation funding Pegula’s football stadium. As for Governor Kathy Hochul, she promises to support 10,000 construction jobs by building the new Buffalo Bills stadium (a hyperbole we’ve all heard before); she has won over the favor of public opinion by lessening the burden on the taxpayer; all while successfully providing bread and circuses to the public and swiftly allocating Seneca casino money right to fracking billionaire Terry Pegula’s new project. The Seneca Nation of Indians have submitted to the state’s unjust tactics, but this story is far from over. Nay, it is only just beginning.