Class III Slot Machines Under Fire
Saturday, October 30th, 2010With the growth in slot machine gambling, the market is facing serious issues. If you look at the progression of the issue, it’s clear to see how much it is stirring up in the market. There are serious talks going on to sort through the issues. New York is a state that is heavy in the issue. Right now the Seneca Nation of Indians are the center of an argument. They have been trying to get the attention of the government for some time now. They wanted to discuss issues they were having and overcome them. When they weren’t able to get a seat with legislators, the casino’s tribal leaders began to get agitated. They purposely stopped payments and demanded to be heard. Their tactic didn’t work though—legislators didn’t call them to task like they had hoped. Once they stopped paying though for an extended period of time, legislators changed their minds. They began to get angry and demand that the tribe start to pay. It seemed like an even exchange—talk to the tribe and they keep making payments.
What is in question for the tribe is their Class III slot machines. The Nation has a good revenue to offer the state, but part of their contract is for exclusivity with the games. The state however changed their minds on that issue and allowed another location to bring slots in. It was Moxie Mania slots that were allowed at privately owned businesses and that is infringing on their revenue. The tribal leaders are trying to hold the government to their former commitment allowing them to be the only slot casino in the state. The legislators are on the other side though—they see how lucrative the games are and believe that allowing other locations to bring them is going to elevate their own revenue stream. Their attitude is, why not take advantage of the possibilities out there? Unfortunately, it goes back on their longstanding agreement with the state. It will have to be sorted out but most likely the state isn’t going to make good on their promise for exclusivity. There is just too much money at stake for them to turn it away.

