Even as Seneca Indians redoubled efforts to set up casinos in western New York, a lawyer warned Monday that a court case in Albany could thwart the tribe's plans.

Cornelius Murray said his suit, filed in January, challenges the legality of the October 2001 law approved by the state Legislature and Gov. George Pataki, which the governor cited Sunday when he entered into a casino compact with Seneca tribal officials.

The compact allows the Senecas to establish up to three casinos in western New York. Tribal officials said they'd set up their first gambling hall by early next year at the Niagara Falls Civic Center and find locations in Buffalo and on Seneca land for other casinos later.

"Our main argument is that this agreement (with the Senecas) violates the New York State Constitution because the Legislature purports to authorize activity that is expressly prohibited under the constitution," Murray said.

His suit, filed on behalf of state legislators, also seeks to invalidate the other chief components of the October 2001 gambling bill: the placing of slot-like video machines in horse racing tracks and New York's entry into the Mega Millions multistate lottery game.

New York has been in the lottery game since May.

State Supreme Court Justice Joseph Teresi has declined to issue a temporary restraining order against the state Lottery Division selling tickets to the multistate game, an indication that that aspect of the suit may fail, Murray conceded.