Gov. Paterson threatens to nix Seneca Indians casino deal
News Wire Services

Thursday, October 7th 2010, 4:00 AM

B. Smith for NewsGov. David Paterson Related NewsQuit betting on the nagEditorial: On the wrong trackOff-Track Betting pink slips 1,300 workersPaterson sees new Aqueduct racino plan within one monthBad bet for New YorkWhat are they hiding?Gov. Paterson is threatening to spike the deal that allows the Seneca Indians to operate three casinos - because the tribe is withholding payments to the state.

In a letter to Seneca President Barry Snyder, Paterson's top lawyer, Peter Kiernan, said the Senecas owe $105.5 million from 2009 and $109 million for 2010.

The letter requests a meeting within 14 days to negotiate a solution.

"Otherwise," the letter said, "... the state will commence arbitration and seek a finding of material breach."