BUFFALO, N.Y. -- The Seneca Nation of Indians is defending its decision not to pay the state revenues from its three Western New York casinos.

Earlier this week the Seneca Nations Tribal Council announced it will withhold any future revenue sharing payments to the state.

The Senecas claim facilities like the newly reopened Hamburg Casino violates a 2001 exclusivity gaming agreement with the nation.

Some, like Tribal Council co-chair J.C. Seneca, are questioning the timing of the move, which comes just as the state was gearing up to collect taxes on the sale of Indian tobacco products.

"Well we're not playing anything. This is very serious to us, and yeah, timing is everything and certainly like I said the Councils been looking at it but we thought this is the correct time for us to move on this with everything that's going on," said Seneca.

Wednesday a state judge issued a stay preventing the state from collecting taxes on Indian cigarettes sold to non-Indian customers.