Casino hoping to move forward with facility once settlement reached with developer
Two Kings Casino is hoping to get back on track with its permanent facility plans if the Catawba Tribe can come to an agreement with Sky Boat Gaming following a notice of violations issued by the National Indian Gaming Commission in December of last year.
The casino faced potential closure and fines as a result of the violation.
In a press release from Delaware North on behalf of the Catawba Nation, it states the developer, Sky Boat Gaming, is demanding the Catawba Nation pay an “exorbitant price” to gain control of its trust lands to satisfy National Indian Gaming Commission casino ownership requirements.
It cannot proceed with its planned $700 million casino resort project until a deal is reached, said the new Catawba Nation Chief Brian Harris.
In the meantime, planning for the permanent facility has continued, with construction and design plans being finalized in the coming months.
“Not long after we reach a fair settlement with Sky Boat, we will be ready to put shovels in the ground and begin this long-awaited and vital project,” Harris said in the press release.
According to the release, Sky Boat, headed by businessman Wallace Cheves, was to have developed the casino resort for the Catawba. But in December Sky Boat and the Catawba were issued Notices of Violation by the NIGC regarding contracts for the casino development.
The NIGC cited the ground lease for the trust lands and other agreements that gave Sky Boat too much ownership control and management authority over the casino project, according to the release. The NIGC threatened fines and said the permanent casino could not be developed until the Notice of Violations were resolved. The Catawba Nation was allowed to continue operating its temporary casino housed in modular structures featuring 1,000 gaming machines.
The Catawba have since attempted to cut ties with Sky Boat and Cheves by negotiating to regain control over the trust lands for the casino development. Harris met with Cheves in early October but said the current offer from Cheves calls for exorbitant payouts to Sky Boat – a one-time $125 million payment and then $6 million annual payments for access to adjacent non-trust land currently housing the temporary casino’s parking lot, according to the press release.
The adjacent non-trust land was acquired by Sky Boat at the same time Sky Boat was working to secure the trust lands for the Catawba, an acquisition that Harris characterized as trying to advantage Sky Boat at the expense of the Catawba.
“Sky Boat is holding hostage this casino resort project and all of the economic and quality-of-life benefits for our people and residents of the area,” Harris said. “We need a fair deal so we can realize the full financial benefits of the project, create 2,600 permanent jobs and hundreds of construction jobs, and provide local governments and the state of North Carolina with tax revenue and other investments under our compact.”
Harris noted the NIGC has not approved the planned settlement but certified it was not a management contract as the previous agreement with Sky Boat was deemed to be.
The Catawba Nation’s gaming operations are also now fully compliant with the Indian Gaming Regulatory Act (IGRA). According to the release, the Catawba Nation’s gaming machine lease is now with an NIGC-approved company that supplies gaming machines to many Native American casinos, ending the previous connection to a company that had political ownership ties.
This article originally appeared on The Shelby Star: Casino gives update, details delays with construction plans
