E. Sequoyah Simermeyer, chairman of the National Indian Gaming Commission (NIGC), issued a notice of violation to the Catawba Two Kings Casino located 30 minutes outside Charlotte in North Carolina.
Catawba recently launched a sportsbook on-site, but according to an investigation the casino owner broke a federal by allowing Sky Boat to partially manage the expansion of the casino with a contract the was approved by the NIGC. Both Sky Boat and the casino owner also failed to submit the management contract within 60 days of execution as is required by local regulations.
Both groups will now face potential financial penalties of $58,000 per day for each of the two violations. There is also the distinct possibility that the casino must close its doors until the matter is resolved.
In statement, Simermeyer said:
“Based on an exhaustive investigation and analysis of the circumstances, we issued a Notice of Violation to both enforce regulatory compliance and ensure the Nation is the primary beneficiary of its gaming revenue.
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.”
Principal Chief Richard Sneed with the Eastern Band of Cherokee Indians issued a statement following the announcement:
“This is sad news because schemes like this threaten the integrity of Indian gaming.
We are glad to see the NIGC fulfilling its duty to protect the industry, but I wouldn’t be surprised if IGRA violations are only the tip of the illegal iceberg.
From the beginning, everything about this casino appears to have been tainted with political corruption and bad actors who flout the law.
We hope authorities will continue to pursue truth and accountability in this matter.”
The potential closure of the casino comes just two years after sports betting was legalized in North Carolina.
Reporter & gambling industry analyst covering the land-based and online casino industry in the United States.
