Niagara Falls Near Junk as Casino Spat Drains Cash: Muni Credit
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Niagara Falls, the New York tourist mecca caught in the middle of a $600 million casino dispute between the state and the Seneca Nation of Indians, may run out of cash as soon as November. Investors are pushing the city’s borrowing costs to a 10-month high.
New York’s biggest Indian tribe stopped paying the state its 22 percent share of slot-machine revenue in 2009 after nontribal lottery terminals were allowed inside the tribe’s 10,500-square-mile (27,200-square-kilometer) exclusivity zone. Governor Andrew Cuomo said last month that the tribe owes New York $600 million and there’s little chance of reaching a settlement before an arbitration panel rules.