What New York needs badly are more reservations covering more territory. It cannot help but be improved.
I know of few instances of Indian reservations that are anything other than enclaves of poverty, social decline, and chronic welfarism. Even when there is a flow of cash from casinos, the underlying social pathologies tend to continue and may even become more destructive.
Moreover, I know that my boyhood was the better for two friends who were half Indian (Apache and Cherokee) in their ancestry. That meant nothing to them or me and we treasured our friendship. Call me selfish, but I would never have known them if they had grown up on a reservation instead of in suburban central Florida.