- The investigation concerning the Two Kings Casino is expected to wrap up within this year.
- The National Indian Gaming Commission is probing the financial interactions between the Catawba Nation and Kings Mountain Sky Boat Partners.
- Progress on the construction of the permanent casino has been stalled due to the ongoing investigation.
Although the federal investigation into the Catawba Nation's Two Kings Casino may be nearing its end, it appears that the regulators are still not satisfied with the tribe's compliance.
Currently, the commission is investigating two primary concerns: whether the Tribe retains a controlling stake in the casino and whether they acquired authorization for management agreements connected to the casino's construction and operations.
These factors are essential under the Indian Gaming Regulatory Act, which is designed to shield Native American Tribes from organized crime and other negative influences, ensuring that tribes benefit primarily from gaming ventures.
As the investigation continues, a report from the Charlotte Observer disclosed that a commission representative indicated last Friday that it might conclude by the year's end. Nonetheless, the matter regarding the Catawba Nation's adequate ownership of the gaming operations at the Cleveland County casino remains unresolved, with ongoing discussions with the commission.
Concerns surrounding Catawba's Financial Transactions
Federal officials have expressed significant concerns regarding the financial dealings linked to Catawba's Two Kings Casino. @PaytonGuion @dldolder https://t.co/XY9jiUVpJe
— Cathy Clabby (@cathyclabby) November 5, 2022
In March of last year, the National Indian Gaming Affairs Commission informed Chief Harris that there was a lease agreement between the Tribe and the casino's developer that breached the Indian Gaming Act.
Chief Compliance Officer Tom Cunningham stated that the agreement for a ground lease between the Catawba Tribe and Kings Mountain Sky Boat Partners LLC granted the company 'management authority' over the casino's operations without prior approval from the gaming commission.
In a correspondence sent to the tribe, Cunningham warned that the breach could lead to a notice of violation, potential civil penalties, and/or a temporary closure order for both the Nation and Sky Boat, who manages the tribe's gaming operations.
Moreover, last summer, the Wall Street Journal matched prominent individuals to financial ties involving the casino. John Clyburn, sibling of U.S. Representative Jim Clyburn, and Michael Haley, husband of the former South Carolina governor Nikki Haley, held financial interests in a company called Kings Mountain Equipment Supply, which provides slot machines for the casino and profits from its operations. However, this matter is outside the scope of the NIGC investigation.
Temporary Two Kings Casino Opens in Kings Mountain
"Fireworks\" lit up the day as the Two Kings Casino officially began operations in Kings Mountain. This temporary venue will serve customers while the construction of a permanent facility is underway, already welcoming hundreds eager to try their luck at the slots. pic.twitter.com/gjxmIATe6y
— Brandon Goldner (@GoldnerTV) July 1, 2021
The Catawba's reservation is situated near Rock Hill, South Carolina, but due to the state's prohibition of most gambling forms, the tribe was unable to establish a casino there. Consequently, they sought opportunities across the state line, heading toward a region more favorable to tribal gaming.
After years of political negotiation and opposition from the Eastern Band of Cherokee Indians, the Catawba Nation finally received permission from the U.S. Department of Interior's Bureau of Indian Affairs in March 2020 to construct a casino on a 17-acre parcel identified as tribal land in Cleveland County. This approval reversed a prior decision where their casino proposal had been rejected.
In July 2021, the Catawba Tribe entered into a revenue-sharing agreement with North Carolina. Six months later, they launched a temporary gambling venue equipped with 500 slot machines. By December, the slot machines increased to 1,000, and the tribe also introduced 30 sports betting kiosks the previous September.
In December 2021, Congress enacted legislation that allowed for the casino's construction pending an investigation. Although construction for the permanent casino was initially slated to start by the end of 2021, it remains on hold due to the ongoing inquiry.
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