ALBANY, N.Y. — Since the casino cash stopped flowing, Salamanca has laid off workers, Niagara Falls has cut back on cleanups and county reserve funds have dried up in the North Country.
The struggling municipalities in western and northern New York are collateral damage in a high-stakes confrontation between the state and Indian tribes involving gambling dollars.
The Seneca and Mohawk tribes have for years withheld casino payments to the state because they say New York violated contracts with them by allowing gambling in exclusive Indian territories.
Consequently, the state stopped sending money — more than $100 million so far — to municipalities where Indian casinos operate. Without their share of casino money, these communities are straining to provide services.
With no compromise in sight, arbitrators may have to resolve the long-running dispute.