- The investigation on the Two Kings casino could be completed this year.
- The National Indian Gaming Commission is investigating financial dealing between the Catawba Nation and Kings Mountain Sky Boat Partners.
- Construction of the permanent casino has been delayed because of the ongoing investigation.
The Federal investigation on the Catawba Nation’s Two Kings Casino could be coming to a close but the tribe has not reportedly satisfied regulators.
Right now, the commission is looking into two main issues: whether the Tribe has retained a proprietary interest in the casino and whether they got the approval for management contracts related to the construction and operation of the casino.
Both are key requirements of the Indian Gaming Regulatory Act, which protects Native American Tribes from “organized crime and other corrupting influence and ensure that tribes are the primary beneficiary of gaming operations”
The investigation is ongoing and per a report from the Charlotte Observer, an official from the commission revealed last Friday that the proceedings could be completed by the end of the year. However, the issue of whether the Catawba Nation would hold sufficient ownership of the gaming operations of the Cleveland County casino looks still unresolved, and the Tribe is still going back and forth with the commission.
Concerns over Catawba’s Financial Deals
Federal regulators raise serious concerns over Catawba Two Kings Casino financial deals @PaytonGuion @dldolder https://t.co/XY9jiUVpJe
— Cathy Clabby (@cathyclabby) November 5, 2022
Last March, the National Indian Gaming Affairs Commission alerted Chief Harris that a lease agreement between the Tribe and the casino’s developer had violated the Indian Gaming Act.
According to Chief Compliance Officer Tom Cunningham, a ground lease between the Catawba Tribe and Kings Mountain Sky Boat Partners LLC gave the company “management authority” over the casino operation and had not been approved by the gaming commission.
A letter sent by Cunningham to the tribe said that the violation “may result in the issuance of a notice of violation, a civil fine assessment, and/or an order of temporary closure to the Nation and Sky Boat as the manager of the Tribe’s gaming”.
Last summer, the Wall Street Journal also published a report linking influential people to financial ties with the casino. John Clyburn, brother of U.S Rep. Jim Clyburn, and Michael Haley, husband of former South Carolina Nikki Haley had financial stakes in a company called Kings Mountain Equipment Supply, which supplies the casino’s slots and earns from its operations. This issue is however not covered by the NIGC investigation as it is outside its statutory authority.
Temporary Two Kings Casino Opens in King Mountain
“Fireworks” in daylight: Two Kings Casino officially opens in Kings Mountain. The temporary casino will operate while a permanent facility is built behind it. Hundreds of people have already arrived to play the slots. pic.twitter.com/gjxmIATe6y
— Brandon Goldner (@GoldnerTV) July 1, 2021
The Catawba’s reservation is located near Rock Hill, South Carolina. But with South Carolina banning most forms of gambling, they were unable to build a casino there. So the tribe looked elsewhere, to the north of the border and to a state that was more friendly to tribal gaming.
After years of political maneuvering and clashing with the Eastern Band of Cherokee Indians, the Catawba Nation secured the permission from the United State Department of Interior’s Bureau of Indian Affairs in March 2020 to build a casino on 17 acres of land in Cleveland County, a parcel which the federal government acknowledged as tribal land owned by Catawba. That move reversed a previous approval where the department rejected a casino proposal from the tribe.
The Catawba entered into an agreement with the state of North Carolina for revenue sharing in July 2021. Six months later, they opened a temporary gambling facility with 500 slot machines. The slot portfolio increased to 1,000 by December and the tribe also added 30 sports betting kiosks just last September.
In December 2021, Congress passed a law that greenlighted the construction of the casino pending an investigation. Construction of the permanent casino was supposed to begin by the end of 2021 but work has not started with the investigation continuing.
