Tribal Gaming Legal Battle: Catawba Nation Challenges Two Kings Casino Development

The Catawba Indian Nation is in the spotlight as its previous partner, Kings Mountain Land Development Partners, LLC (KMLD), has initiated legal action regarding the ongoing $700 million Two Kings Casino development in Kings Mountain, North Carolina. This lawsuit is raising concerns about property rights and construction integrity.

Recently filed in Cleveland County Civil Superior Court, KMLD is seeking damages exceeding $125,000. They accuse the Catawba Nation of improperly exercising easement rights, illegally altering land features, and unauthorized trespassing on their property.

Background on KMLD and the Catawba Nation

In a notable instance of local business dynamics, the situation stems from a 2018 agreement where the Catawba Nation purchased 17 acres from KMLD, a company owned by Wallace Cheves, a notable figure with significant political connections. Cheves played a crucial role in facilitating federal recognition of the land for tribal gaming, but his subsequent involvement was scrutinized.

Federal Involvement in Tribal Gaming

As the project progressed, the National Indian Gaming Commission (NIGC) intervened, rejecting the operational partnership with Cheves’ Kings Mountain Sky Boat Gaming, LLC due to concerns about the arrangement’s benefit to the tribe versus commercial interests. Cheves has faced legal challenges in the past due to illegal gambling operations.

This situation forced the Catawbas to dissociate from Cheves, resulting in a significant financial transaction: the tribe paid him a separation fee and compensated him with $40 million for additional land to facilitate their casino development.

Progress of the Two Kings Casino

Despite the legal complexities, the Catawba Nation has remained committed to the establishment of a permanent casino, having operated a temporary facility since July 2021. Construction on the intended resort commenced in June, and the first phase is anticipating an opening in early 2026.

The initial phase plans to feature:

• 1,350 slot machines
• 12 live dealer table games
• A sportsbook
• Multiple dining options

Future expansions aim to enhance the gaming landscape, potentially increasing slot machines beyond 4,000 and adding hundreds more table games.

After parting ways with Cheves, the Catawba Nation partnered with Delaware North, a prominent gaming and hospitality group that is assisting with financing and operational management of the casino once completed.

Legal Disputes and Future Prospects

The growing legal disputes pose risks to the project’s timeline and financial planning. KMLD’s claims underscore the importance of adhering to legal agreements while navigating the often murky waters of tribal gaming partnerships.

As the Catawba Nation’s permanent casino project advances, attention will be on both the resolution of the ongoing legal issues and the successful execution of their ambitious gaming and hospitality goals.

Conclusion

The ongoing legal battle involving the Catawba Nation and KMLD illustrates the complex interplay of tribal sovereignty, local business interests, and the burgeoning gaming industry in North Carolina. As construction on the Two Kings Casino progresses, the resolution of these disputes will be crucial for its success and impact on the region’s gaming future.