Court ruling favors Shinnecock casino

A federal appeals court Monday threw out a ruling that had prevented the Shinnecock Indian Nation from building a casino on property it owns in Hampton Bays, though the prospect of a casino there remains far from certain.

In a 2-1 decision, judges for the U.S. Court of Appeals for the Second Circuit, in Manhattan, ruled that the federal court in Central Islip lacked jurisdiction in the case, which they said should have been argued in state court. Their reason: the case revolved around alleged violations of state and town environmental and permitting laws.

The appeals court sent the case back to state court, where it was initially filed. And even with or without the litigation, the tribe would still face many hurdles in opening a casino there or elsewhere.

The case stems from the tribe's decision in 2003 to begin clearing land to build a 61,000 square foot casino on 80 acres at Westwoods, a wooded tract on the Peconic Bay in Hampton Bays, without permits.

The state of New York, the Department of Environmental Conservation, the New York Racing and Wagering Board and the town of Southampton filed suit in State Supreme Court, saying the tribe had failed to secure needed environmental reviews and permits to build.

The agencies also argued that the proposed casino was outside the scope of federal law that allows Indian gaming, and that the Shinnecocks' "aboriginal" claim to the land ended in the 17th century.

The tribe had the case moved to federal court, where it challenged the claims by asserting tribal sovereign immunity. The tribe also challenged the assertion that its claim to Westwoods had expired.

But a ruling in the U.S. District Court in Central Islip sided with the state and town, and granted a permanent injunction barring the tribe from building a casino at Westwoods, halting construction.

Since then, the Shinnecock Nation has been granted federal recognition, a status the tribe asserted rendered many of the state and town's claims moot on appeal.

It has been working to negotiate an agreement with Gov. Andrew M. Cuomo and the state to build up to three casinos in New York.

"Now that the Nation has been federally recognized as an Indian tribe and has been freed from the effects of that [federal court] judgment and injunction, we again ask Governor Cuomo to sit down with the Nation to discuss how the Nation and the State can move forward together," the tribe said in a statement.

A spokeswoman for New York Attorney General Eric Schneiderman, whose office is arguing the case for the DEC and the Racing and Wagering board, said the appeals court ruling was "under review." A Southampton Town spokeswoman declined to comment.