Governor Roy Cooper and the Catawba Indian Nation signed a revenue-sharing agreement as the tribe prepares to open Two Kings Casino Resort in September in Kings Mountain, about 40 minutes west of Charlotte. The 60,000-square-foot preliminary casino will offer 1,300 slot machines and a restaurant. Officials said that facility will be replaced by a larger casino resort later.
Tribal Administrator Elizabeth Harris said, “The compact between Catawba Indian Nation and the state of North Carolina does allow sports betting. We plan to offer sports betting at our site in the future.”
Meanwhile, some North Carolina legislators have called for an investigation into whether current and former local elected officials have been profiting off the Catawba Indians’ planned casino through their votes on the project and their landholdings. In a letter to state Attorney General Josh Stein, 14 Democratic House members wrote, “Multiple elected officials and former elected officials who took action on this project stand to benefit from the casino investment.” They stated “a nearly untraceable network of LLCs” own land surrounding the casino property, including Kings Mountain Mayor Scott Neisler’s family, who have extensive landholdings in the area.
The Charlotte Observer also searched public records and found former longtime Cleveland County Commissioner Eddie Holbrook has a financial stake in land near the casino. He’s listed as an officer of E5 Holdings LLC, which owns 22 acres directly across from the casino property, records show.
Holbrook, who lost reelection in November 2018 after serving 12 years on the board, said he voted to support the casino project because of its economic benefits to the county. He said he bought a 10 percent stake in E5 Holdings, which he said was created after he’d left office as a commissioner. Records confirm E5 Holdings was formed in 2020 in Nevada. They also show E5 Holdings is affiliated with LLCs formed by Two Kings developer Wallace Cheves.
Holbrook said, “I never considered it anything at all unethical. My wife and I also purchased an interest in a hotel development in Cleveland County. I voted for the casino project because I thought it was good for the county, and it was an opportunity for the county to experience growth in jobs and other things.”
Holbrook said before he invested in the projects, he consulted County Manager Brian Epley, who checked with the University of North Carolina School of Government. Holbrook said Epley told him he was allowed to legally invest in the projects as long as he invested 10 percent or less. “All we did as a board was say we’re in support of the project, but it was a federal government decision,” Holbrook said.
Holbrook said he was surprised to learn he’s listed as an officer of E5 Holdings. “I will take an oath I never did anything purposely wrong when I was serving. I tried to do everything properly. I value my integrity and reputation, to be quite honest with you,” Holbrook stated.
Public records also show Neisler Brothers Inc. owns about 780 acres from 1 to 2 miles from the casino site. The mayor was listed as treasurer of the company in its annual state filings until its most recent report in June 2020, according to the review. He said he owns just two shares in Neisler Brothers, worth $2,000 apiece.
Neisler said no conflict of interest exists in his role as an elected official. He explained, he never voted on the project and most of his family’s landholdings can’t be developed, because they’re under mineral rights. “You can’t sell it, because they’re mining mica out of it,” he said. The letter to Stein was “just another heavy-handed attempt by the Cherokees to keep a monopoly in North Carolina. It’s a money thing with the Cherokees. This is just a continuation of just trying to smear me,” Holbrook stated.
The Eastern Band of Cherokee Indians’ two casinos are the only other ones permitted by the state. North Carolina’s first legal sports betting venues opened in the Eastern Band of Cherokees’ two casinos.
Federal approval still is required for Class III gaming as agreed to by Cooper. However, the deal with the state meant construction could start at the site, according to the Catawbas.
A judge has yet to rule on a lawsuit by the Cherokees to stop Two Kings Casino Resort.
