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Week of June 25, 2002 |
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ALBANY, N.Y., June 25 (UPI) -- "I hate to interrupt this
lovefest," said Cornelius Murray, as he interrupted this
lovefest.
Neil Murray was the odd man out at the New York Gaming
Summit, his white hair sticking straight up from his head like an
exotic bird, showing up to announce his intention to continue
suing the pants off the state of New York in an effort to stop
the expansion of legalized gambling.
"I am no moral purist or absolutist," says Murray, who was
eyed warily by all the casino companies, Indian tribes and slot
machine manufacturers in the audience. "I like to go to Las Vegas
and Saratoga with my wife. But the issue here isn't my particular
perception of gambling or yours. People say commercial gambling
is not evil--but our state constitution treats commercial
gambling as evil. If it's not evil, why does our constitution
prohibit it?"
Strange words in these times--and inconvenient ones. But
unfortunately for those who are frothing at the mouth to get
casino gambling installed in the Catskills as quickly as
possible, Murray is not just a crackpot. He's a veteran Albany
litigator who has already beaten the state of New York twice on
gambling issues, and he represents a broad coalition of
individuals and organizations who dislike the new gambling bill
for a variety of reasons. His new lawsuit--attacking the bill
passed last October to legalize six Indian casinos, slot machines
at eight race tracks, and a multi-state lottery--may be a case
that ends up before the Supreme Court, and if so it's going to
upset a lot of Indian-gaming advocates.
I don't think I'm exaggerating when I say that what happens
in New York state may define gambling in America for the next
century or so. There haven't been this many dollars at stake
since Atlantic City legalized gambling in 1978, but this time, if
New York has its way, many other states are likely to follow, and
we could end up with a nation in which no one lives more than 90
minutes from a casino.
That's why Murray's pending court cases are intriguing.
Indian casinos have been challenged before, but they've never
been quite this vulnerable. The legislature acted in clear
contradiction to its own constitution, ordered that the right to
run the casinos be reserved to Indians only, and passed other
measures that were thinly disguised efforts to shift the
difficult business of taxation policy onto the backs of gamblers.
As in most states, it was a trend that entered by the back
door. Casino gambling started so quietly in New York state that
many New Yorkers still don't know it exists. In 1993 Turning
Stone Casino, near Syracuse, was opened by the Oneida Indians
after they reached an agreement with Governor Mario Cuomo. That
led the St. Regis Mohawks to seek a similar compact, and in 1999
they opened their own tiny casino in an out-of-the-way town near
the Canadian border. Governor George Pataki altered the original
Cuomo compact to give the Indians a better deal, and it was
around that time that Murray filed his first lawsuit.
The New York state constitution explicitly forbids
"commercial gambling," although it has been altered at times to
allow pari-mutuel betting at race tracks, small bingo operations
by non-profits, and a state lottery. But the governor had no
right to enter into agreements for full-fledged casinos, argued
Murray. Only the legislature could do that. And eventually two
judges agreed with him. It was the beginning of what he calls his
attack on the Indian Gaming Regulatory Act of 1988, the enabling
legislation that has resulted in the Indian casino boom
throughout the nation. (Ironically, he will now argue to the
court that the legislature doesn't have the authority, either,
and that only a people's referendum can legalize casinos.)
"Does federal law supersede New York state law?" asks
Murray. "Is the Indian Gaming Regulatory Act a national
regulatory bulldozer? The IGRA is not unequivocal. If gambling is
absolutely prohibited in a state, then the Indian tribes have no
right at all to do it. You're dealing with a gray area here,
because some gambling is allowed in New York--the lottery and
pari-mutuel betting and non-profit bingo. Does that open the door
to all gaming? Some courts have tried to address this, but not
the Supreme Court. Since it's ambiguous, and since people have
ambiguous feelings about it, why not put it to a referendum? Why
shove the constitution aside and just ignore it?"
But them's fighting words in Albany, where the cash-starved
legislature is looking to gambling to solve a great many of its
problems, and several people at the Gaming Summit wondered aloud
just why Murray is doing this and who he's really working for.
"I have no connection to Donald Trump," he says, answering
the unspoken assumption. In fact, Trump, owner of three casinos
in Atlantic City, has a similar suit pending against New York
state, making most of the same arguments Murray makes, but the
cases haven't been linked in any way. "It would be politically
unwise to take money from Donald Trump," says Murray, "but the
principle of the case is the same no matter who's stating it."
The plaintiffs in the case are actually a grab bag of people
who don't have much in common except their dislike of gambling.
One is Republican State Senator Frank Padivan, who considers
gambling a "regressive disguised tax on the poor." "Fifty per
cent of the money bet in the lottery," says Murray, "is wagered
by 5 per cent of the people. And those are the economically
distressed, trying to hit it big. The lottery is very attractive
to pathological gamblers. And even though they say it's earmarked
for education, it's not like it's supplemental. They aren't fully
funding education and then adding the lottery money to that. It's
really just a tax."
Another plaintiff is Bill Parment, the state representative
from Jamestown, New York, home district of the Seneca tribe. The
Senecas stand to benefit most from the gambling bill passed last
October, as they've been promised three casinos in western New
York--one in Niagara Falls, one in Buffalo, and one on their
ancestral tribal lands. But Parment is disturbed by the way the
gambling bill was passed.
It was approved by the legislature on October 23 or October
24--no one is quite sure, because it happened in the dead of
night--after the bill was placed on members' desks with a note
from the Speaker and the Governor telling them the state needed
emergency passage. They even had to end-run the law to push it
through. To avoid the normal three days a bill has to be on
members' desks, the governor wrote a "message of necessity."
"It was a farce and an insult to representative democracy,"
says Murray. "Three people meet in a room. The bill is drafted
and placed on the legislators' desks, a bill that they never saw.
And then they're told by the leaders of both houses, 'Vote for
this bill, you've got two minutes.' And the majority leader says,
'I want your vote.' And using September 11 as the rationale for
ignoring the law is just unmitigated baloney."
Perhaps the oddest Murray plaintiff is Joe Dalton, the
president of the Chamber of Commerce in Saratoga, New York,
famous as the home of venerable blue-blooded Saratoga Springs
Race Track. "Joe feels like casinos should be outlawed because
they're different from racing," says Murray. "He's opposed to the
garish neon-lighted forms of gambling."
Add to those plaintiffs a number of anti-gambling coalitions
that object to it on moral and religious grounds, and you have
the makings of a monster court case.
"As a practical matter, we know the courts probably won't
shut down the casinos that already exist," says Murray, "but we
think we could freeze everything where it is. At least the
opposition would have to start a movement for a constitutional
amendment. And that takes approval by two successive legislatures
plus a referendum of the voters."
Meanwhile the Indian tribes have made no secret of their
dislike for Murray. Speaker after speaker at the Gaming Summit
rose to deny that their proposed casinos fell under the
definition of "commercial gambling." They would be nothing like
Atlantic City, they all said. Murray seemed amused by their
protestations.
"I respectfully but vehemently disagree that this is not
commercialized gambling," he said.
Equally vehement was Lorraine White, general counsel for the
St. Regis Mohawks. "When we talk about the evils of gambling,"
she said, "let's also talk about the evil reality of living in
the Mohawk nation. We are empowering ourselves."
To which Neil Murray would probably say, maybe and maybe
not. The next hearing is in July, and so far everything has gone
in Murray's favor. If he keeps winning, those Catskills casinos--
estimated to be worth about $1.5 billion to the New York economy-
-and the new upstate casinos--estimated to be worth $800 million-
-could be a long way off.
© Copyright 2002 United Press International and Joe Bob Briggs |