KINGS MOUNTAIN, N.C. — The management of the Catawba Two Kings Casino has been found to have violated the Indian Gaming Regulatory Act and regulations set forth by the National Indian Gaming Commission (NIGC), the agency announced Wednesday.
The NIGC issued the Notice of Violation against the Catawba Indian Nation, and one of its partners, Kings Mountain Sky Boat Partners, LLC, which is also known as Sky Boat.
An investigation by NIGC alleged the Catawba Indian Nation violated the regulation by allowing Sky Boat to "manage in part the expansion of Catawba Two Kings casino without an approved management contract," the agency explained.
The Indian Gaming Regulatory Act, enacted by the United States Congress in 1988 to regulate the conduct of gaming on Indian Lands, required the Catawba Indian Nation to seek the approval of the NIGC chairperson before entering into such a management contract.
“Based on an exhaustive investigation and analysis of the circumstances, we issued a Notice of Violation to both enforce regulatory compliance and ensure the [Catawba Indian] Nation is the primary beneficiary of its gaming revenue," E. Sequoyah Simermeyer, the chairman of the National Indian Gaming Commission, said in a released statement. "We do not take this enforcement action lightly, but do so to preserve the integrity of the industry and protect the valuable tool Indian Gaming represents for many Tribes as codified in the Indian Gaming Regulatory Act."
Catawba Indian Nation is a federally recognized Indian tribe with tribal headquarters in Rock Hill, South Carolina. They own the casino, located across state lines in Kings Mountain, North Carolina, which has been open and operating since July 1, 2021. Dating back to as early as opening day, the NIGC alleges they have been communicating with casino partners about concerns and potential violations.
"These goals are shielding the [Cawatba Indian] Nation from organized crime and other corrupting influences; ensuring that the Nation is the primary beneficiary of the gaming operation; and ensuring fair and honest conduct in gaming by both the operator and players," the NIGC explained in their 30-page violation.
The violation explains the plan was for Sky Boat to "develop, finance, and construct the [gamiling facilities] on a turn-key lease basis for the Nation," the document explains.
The Catawba Indian Nation, Sky Boat, and Sky Boat’s owners, officials, managers, and consultants could face civil penalties up to $57,527 per day for each violation. The gaming operation could be subject to a temporary closure order.
In response, the Catawba Indian Nation provided WCNC Charlotte with this statement from Chief William Harris:
The Catawba Nation is committed to resolving the issues cited by the National Indian Gaming Commission regarding the lease agreements for our casino resort project with Sky Boat Partners. The issues don’t involve current casino operations.
WCNC Charlotte has also reached out to Sky Boat for seeking additional comment.