Hundreds of Catawba Nation members recently gathered at their reservation outside Rock Hill, South Carolina to discuss cutting ties with Sky Boat, the Greenville-based operator of the tribe’s Two Kings Casino in Kings Mountain, North Carolina.
Last month, the National Indian Gaming Commission (NIGC) issued a report inquiring why the Catawbas allowed Sky Boat to expand the current, temporary casino building without getting the proper regulatory approvals, which are designed to guarantee that the tribe is the main beneficiary of gaming operations.
The Catawbas and Sky Boat have filed an appeal with the NIGC to avoid penalties of daily fines of $57,000-plus or temporary closure of Two Kings. If the tribe moves forward with breaking off from Sky Boat, it would have to build a parking deck, hire new management and rent new slot machines for Two Kings Casino.
According to Catawba Nation Communications Manager Tylee Anderson, “The Catawba Nation has filed an appeal of the notice of violation issued by the National Indian Gaming Commission as we work to resolve issues regarding lease agreements with Sky Boat Partners for our casino resort project. The issues don’t involve current casino operations.”
Sky Boat and its subsidiaries, controlled by Greenville businessman Wallace Cheves, have had ties to the Catawbas since 2008. Tribe members have said they blame Sky Boat for the Catawbas’ high-stakes bingo hall closing in Rock Hill. The contracts between Cheves and his development partners gives the companies a 20 percent share of Two Kings’ slots revenue.
Tribal officials estimated the casino could generate $150 million in annual revenue within its first five years. They said it’s not known what the financial impact of ending agreements with Sky Boat could have on profits.
Upcoming tribal elections this summer also could impact the relationship with Sky Boat. Two cousins running against each other to succeed long-time Chief William “Bill” Harris both said they’ll campaign on cutting ties with Sky Boat.
Assistant Chief Jason Harris, a member of the tribe’s executive committee for nearly 17 years, said if he’s elected chief he’ll enter into an amicable settlement agreement with Sky Boat to cut the tribe’s ties with the company. General Council member Brian Harris said the tribal government should end all contracts with Sky Boat, but didn’t explain how that process would work.
In a letter to tribal members, Harris said not to be concerned about the NIGC investigation. He wrote, “We would urge the Catawba Nation to not assume the media has the story right. We will defend the nation’s integrity and appeal the notice of violation, but we are working to settle it as there is actually little in dispute.”
The temporary Two Kings Casino is housed in red modular buildings and offers 1,000 video slot machines and electronic table games. The tribe has plans to build a permanent, $300 million casino with 5,000 games, four restaurants and a 29-story hotel featuring a man-made river and waterfall. The facility would create 2,000 jobs, officials said.
