A spokesman for the National Indian Gaming Commission (NIGC) confirmed the agency is investigating the Catawba Nation’s Two Kings Casino in Kings Mountain, North Carolina, but would not explain the focus of the investigation or the individuals or organizations involved.
In response, the Catawba Nation stated the NIGC investigation is a standard review of the tribe’s agreements and operations and is not focused on politicians’ relatives receiving money from casino equipment vendors.
The statement noted the NIGC “expressly told us that this was limited ‘to the requirements of the Indian Gaming Regulatory Act, including ensuring that the tribe maintains the sole proprietary interest in its gaming operations. Actions by the tribe’s vendors outside the confines of the IGRA are not within the scope of the agency’s jurisdiction.’ The Catawba Nation continues to work closely with the National Indian Gaming Commission on its standard review of our casino project.”
The Wall Street Journal first reported the investigation was occurring. It noted the brother of U.S. Rep. Jim Clyburn of South Carolina and the husband of former South Carolina Governor and United Nations Ambassador Nikki Haley held shares in AGS of North Carolina; AGS has a 10.1 percent stake in King Mountain Equipment Supply, which provided slot machines to the casino and receives 20 cents of every $1 in profits generated by the slots. Investors also receive regular payments from the slot proceeds.
The Indian Gaming Regulatory Act states tribal gaming net revenue shall not be used for purposes other than funding tribal government operations, providing for the general welfare of the tribe and its members, promoting tribal economic development, donations to charitable organizations or funding local government agencies operations. Contracts for supplies, services or concessions above $25,000 annually are subject to independent audits.
For years, the South Carolina-based Catawba tribe tried unsuccessfully to build a casino there. In March 2020, the U.S. Department of Interior took into trust for the tribe 17 acres in North Carolina, where the Catawbas claimed ancestral ties. The tribe and North Carolina signed a gaming compact in March 2021. In December 2021, the Interior Department’s decision was codified into federal law after Clyburn’s bill was included in a budget agreement and signed into law by President Joe Biden.
On July 1, 2021 the Catawba opened a temporary casino in Kings Mountain, offering 1,000 slots. Legal sports betting will be available for football season, tribal officials said. Construction has begun on the permanent casino, adding “plans for the full casino and necessary agreements are undergoing a thorough review by the National Indian Gaming Commission.”
