Drunk with Power: Casino’s Political Influence Linked to Booze Deal

Tax-free Turning Stone uses Legislature muscle for anti-competitive ends, says Townsend in letter to Gov. Paterson

In a letter to Governor David Paterson, Assemblyman David Townsend (R,WF-Sylvan Beach) criticized the Oneida Indian Nation-owned Turning Stone Resort and Casino for the tax scofflaw’s latest controversial abridgment of New York State’s laws: using catering services provided by The Beeches of Rome in order to serve alcohol starting next month at the five restaurants and three bars located on its premises.

The Beeches is operated by Christopher Destito, the husband of Assemblywoman RoAnn Destito, who sits on the Economic Development, Job Creation, Commerce and Industry Committee, the Assembly body responsible for issues concerning the New York State Liquor Authority. Destito has come under pressure recently to recuse herself from Liquor Authority-related legislative work following reports that Beeches had over 1,000 alcohol-catering permits at Turning Stone approved over the past year alone. According to the Observer-Dispatch, over 95 percent of all alcohol-catering permits for Turning Stone issued by the Liquor Authority between October 2007 and the fall of last year went to The Beeches.

In the letter, Townsend points out that the Oneida Indian Nation receives special treatment despite the fact it has repeatedly been in violation of state tax law, refusing to collect sales taxes on transactions made on reservation property. In May, a controversial agreement was struck to place thousands of acres of Oneida County land into Oneida Nation hands, exempting them from state and local taxes and removing all zoning and environmental protections on land adjacent to residential neighborhoods in western Oneida County.

“New York has a proud tradition of free enterprise,” said Townsend. “We rely on fairness and the rule of law to keep our system viable. This system is compromised by the Oneida Nation’s latest foray into access capitalism – using its political influence within the state Legislature to get lucrative deals for its properties while continuing to ignore our tax laws. Our small businesses cannot compete in this atmosphere. The licensure process has been broken in New York for years, resulting in months of delays for tavern owners and restaurateurs. What’s more, the Oneidas have determined that certain rules don’t apply to them. They have skirted our laws to add to their swelling revenues even as a recession bears down on most Mohawk Valley businesses. I am calling upon Governor Paterson to hold Turning Stone to the same standards other small business owners must follow and immediately ask the Liquor Authority to stop issuing further permits.

Drunk with Power: Casino’s Political Influence Linked to Booze Deal

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