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Kathy Hochul’s administration tried to push a plan through the Legislature that would have empowered her administration to negotiate a new gambling compact with the Seneca Nation of Indians without outside oversight. For months, talks over a new casino deal between New York State and the Seneca Nation of Indians have been at an impasse, with the two sides deadlocked over the size of the state’s cut of hundreds of millions of dollars in gambling revenue, and what the tribe would get in return.

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With a few precious hours left before state lawmakers were set to break for the year, that suddenly seemed set to change: Gov. Kathy Hochul, who has faced questions over her husband’s ties to commercial gambling interests, tried to fast-track a bill that would have given her administration blanket authority to negotiate a new compact with the Native American nation — and cut out the scrutiny that accompanied the old one.

But now the effort, marked as it was by secrecy and a lack of consultation with virtually anyone besides tribal leaders, has backfired spectacularly. It has alienated local officials and gambling and labor interests that are powerful forces in New York State politics and left the state and the Senecas no closer to a new casino compact. Hochul’s office kept private all the crucial details of what was negotiated with the tribe, one element in particular proved fatal in the legislature: an agreement to allow the Senecas to build a casino, the tribe’s fourth, in or near Rochester, part of an upstate market that the state’s own study had called “saturated” with gambling options.

The Senate passed the bill nearly unanimously, but, as word spread about the proposed Rochester casino, opposition mounted and the Assembly shelved its vote, sending the negotiators back to the bargaining table. Legislators in both parties said they had been unaware of what was in the deal they were asked to vote on.

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Even some sponsors of Seneca-related legislation said they had not been briefed on it by the governor’s office. Neither had Senator Liz Krueger of Manhattan, a Democrat who leads the Senate Finance Committee.“We sort of got hoodwinked,” she said.

Back-room deals are common in Albany, but few have involved issues as contentious as the location of a new casino. With commercial casinos, such decisions typically require layers of approval and hundreds of millions of dollars in licensing and application fees.   The process for striking a gambling compact with a Native American tribe is different, requiring federal approval but not adherence to the regulations and laws that commercial casino operators must follow.  

Federal law also requires the state to provide something of value to the tribe — such as a ban on nearby gambling competition or a new casino — if the state wishes to claim a share of the revenue as part of a new compact.

Under the current deal, ratified more than 20 years ago, the state receives 25 percent of the casino’s take from slot machines, one of the steepest rates paid by any tribe in the United States. The new compact would have provided for a lower rate in addition to the opening of the Rochester-area casino, according to four people with knowledge of the matter, who spoke on condition of anonymity to disclose details of ongoing negotiations.

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The failed attempt at getting blanket authority from the legislature was the culmination of nearly a year of talks over a new compact, which would have remained in force for 20 years after the current deal expires in December. As with the first Seneca compact, billions of dollars in gambling revenue were at stake. But unlike during the earlier negotiations, legislators and voters were given no basic information about what was in the deal. Morelle, a Democrat who represents Rochester, said that he is asking the U. Interior Department, which reviews Native American gambling compacts, to ensure local input in any new casino deal.“I cannot remember an instance where something this important could be done with virtually not only no debate, but no knowledge of what you’re even being asked to vote on,” he said.

When details of the deal did emerge, they were panned by Democrats and Republicans alike, especially in the Rochester area, not far from where Ms. Others, too, expressed frustration over the administration’s secretive behavior.