Winning federal approval for the project took years, and the Catawbas had to fend off a lawsuit from the Eastern Band of Cherokee Indians, who own and operate the Harrah's casino in western North Carolina. North Carolina is friendlier to gambling operations, and the Catawbas secured a site in Kings Mountain, off Interstate 85.

The group's reservation is in South Carolina, near Rock Hill. The Catawba Nation's attempts to open a casino go back more than a decade. The issues don’t involve current casino operations,' said Harris, in a statement. 'The Catawba Nation is committed to resolving the issues cited by the National Indian Gaming Commission regarding the lease agreements for our casino resort project with Sky Boat Partners. Catawba Nation Chief William Harris said the tribe would resolve the situation. Representatives from Sky Boat did not immediately return messages seeking comment Wednesday. The gaming commission could also issue a 'temporary closure order,' which would shut the casino down. The Catawba Nation, Sky Boat and associated executives could be on the hook for up to $57,527 per day in fines going forward for each violation. Sky Boat and the casino have 30 days to file an appeal. The notice requires the casino and Sky Boat to suspend payments and their lease and management agreements, which the commission alleges amounted to handing over control of the Indian casino to an outside entity. 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,” commission Chairman E. '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. The law mandates that tribal casinos be run primarily for the benefit of members, not outside managers or other entities. The casino also failed to submit a contract for approval as required. In issuing a notice of violation, the commission said that the Catawba Indian Nation allowed an outside company, developer Sky Boat, to partially manage the expansion of the Two Kings Casino without an approved management contract. The commission, which oversees regulatory compliance and integrity for tribal gaming operations, said an investigation uncovered multiple violations of the Indian Gaming Regulatory Act. The Catawba Two Kings Casino in Kings Mountain violated gaming laws and faces the potential for high fines and even the possibility of the facility's closure, according to a report from the National Indian Gaming Commission on Wednesday.

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