Catawba Two Kings May Be Forced to Pay a Huge Fine

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: December 17, 2022

There could be a temporary shutdown and a sizable fine for the Catawba Two Kings Casino. The Catawba Indian Nation and one of their partners, were found to have violated IGRA (Indian Gaming Regulatory Act), according to federal regulators.

The National Indian Gaming Commission (NIGC) gave more details about the allegations in a 30-page letter to the tribal nation, representatives of Kings Mountain Sky Boat Partners, and members of its gaming authority and gaming commission. NIGC mentioned that Catawba leaders allowed Sky Boat to “manage in part” the expansion of the casino without receiving the approval of the commission. The parties were also cited for failing to send their contract within two months since the day of its execution.

According to the NIGC, the parties, which include the owners and other Sky Boat representatives, face fines that amount to $57,527 daily for each breach. Additionally, there is a possibility that the commission will order the casino’s temporary closure. Two Kings currently operates in a short-term venue in Kings Mountain, about 30 miles west of Charlotte.

The Catawba Nation Receives a Warning Letter from the NIGC

The Two Kings Casino temporary facility started operating on July 1st, 2021. On this same day, a letter of concern dealing with the Sky Boat agreement was delivered from NIGC compliance staff to Catawba officials. Compliance staff informed Catawba leaders that the NIGC chairman needed to review the Sky Boat deal. Despite this caution, Sky Boat continued to manage affairs at the casino through November 4, 2021.

The temporary casino’s modular expansion, according to the commission, was supervised by Sky Boat representatives. This included the management of billing for the substitutable buildings, acting as the point of contact, and negotiating contracts. Each of the 127 days that the tribe and other parties involved were found to have breached federal gaming laws could result in a fine from the NIGC of up to $7.3 million. The findings of the commission may be appealed by the parties, but they will need to so within one month.

The Catawba Nation stated on its Facebook page that it had received a letter from the commission. The letter was in relation to the commission’s concerns about some of the Catawba Nations’ contracts for the casino.

NIGC Investigation Delaying the Construction of Two Kings Casino in Kings Mountain

Despite being located in South Carolina, the Catawba Nation was able to acquire land for its casino in North Carolina. A law that President Biden signed into effect at the end of last year prevented the EBCI (Eastern Band of Cherokee Indians) from legal action against the Catawba proposal. The EBCI is a federally recognized Indian Tribe based in Western North Carolina in the United States.

The permanent $273 million resort planned for Kings Mountain is being delayed as a result of the NIGC investigation into the casino plans, according to a Wall Street Journal report from back in July. At the time, the tribe referred to it as a “standard investigation.”