Feds say casino in Kings Mountain violated US law over business agreements

KINGS MOUNTAIN, N.C. — A federal investigation found the Catawba Indian Nation’s Two Kings Casino in Kings Mountain violated U.S. law.

The National Indian Gaming Commission issued a Notice of Violation to the casino after it found issues with the casino’s business agreements. It found the Catawba Nation gave a company, Kings Mountain Sky Boat Partners, management authority over the casino without an approved management contract.

The commission said Two Kings could have to pay a fine of more than $57,000 per day if they don’t comply, and could even get temporarily shut down.

“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,” said E. Sequoyah Simermeyer, the commission’s chairman. “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.”

The casino was already under federal investigation after family members of two South Carolina politicians were linked to it. Documents show the brother of Rep. James Clyburn and the husband of former Gov. Nikki Haley were given shares of Kings Mountain Equipment Supply LLC. According to the Wall Street Journal, the former governor was not involved.

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