Washington, D.C. (AP)

The Supreme Court during December refused to consider the case of the Oneida Indian Nation, whose gaming compact with New York was invalidated by state courts.

A group of New York residents, the Upstate Citizens for Equality, has challenged the compact and said the decision “calls into immediate question” operation of the tribe’s Turning Stone Resort and Casino, which attracts over 4 million visitors a year.

State courts concluded New York’s governor exceeded his authority under state law in 1993 by entering into the gaming compact with the tribe without legislative approval.

The Oneidas say the state court rulings conflict with the tribe’s federally protected sovereign immunity. The New York courts ruled that even though the Oneidas cannot be made a party in the lawsuit the citizens’ group brought against the state, the courts could go ahead and litigate the tribe’s interests because the tribe can waive its sovereign immunity and enter the case if it chooses.

The tribe asked the Supreme Court to consider the state courts’ rulings in the context of federally protected sovereign immunity for Indian tribes and the federal interest in tribal economic development.

“Indian gaming is the business of the federal government, and it is not for a state court to interfere with it,” the Oneidas said in a statement maintaining the legality of their compact under federal law.

The Oneidas have applied to the U.S. Interior Department to put all 18,000 acres the tribe owns in two counties in central New York state into federal trust, a status that could bring full or partial sovereignty and exempt the tribe from taxes. Taxes are the most contentious issue between the tribe and area residents and governmental units.

The National Indian Gaming Commission said last year it had no plans to shut down the gambling operation, but it also noted that the issue remains unresolved and urged the state of New York to act quickly to resolve it.

A spokeswoman for Gov. George Pataki said the state has repeatedly urged the federal government to address the issue. “Today we renew that call,” Suzanne Morris said.

A similar suit against the Akwesasne Mohawk Casino reached the state Court of Appeals, which ruled the 1993 Mohawk agreement was illegal because the state Legislature had not ratified it. Lawmakers ratified the agreement while the casino kept operating.

An attorney for the citizens group challenging the compact urged state officials to act quickly, saying the high court’s refusal to hear the Oneidas’ case “calls into immediate question the continued validity of the operation of the Turning Stone Casino.”

“Let’s see if they’ve got the guts to enforce the law,” Albany attorney Cornelius Murray said.

The Oneidas called attempts to shut down the casino, which employs more than 3,500 people, “reprehensible.”

“That’s not a victory and they shouldn’t be celebrating,” the tribe’s statement said. “If we follow the UCE’s lead there would be no economic development in upstate New York.”

Turning Stone includes three championship golf courses, three luxury hotels, a European spa, a convention center, a cabaret-style showroom and an events arena.

The case is Oneida v. Peterman, 06-470.