A South Carolina bill to allow up to three casinos along the I-95 corridor has created an unusual situation for the Catawba Nation. As a tribe largely based in the state, it has argued in favor of South Carolina casino gambling in the past. Although the legalization of commercial casinos would afford it the opportunity it wants, the “who” and “where” of the proposal have the tribe temporarily siding with the anti-casino camp, while continuing to argue for its own right to build one.
As proposed, House Bill 4176 would allow economically disadvantaged communities to operate casino gaming to boost local economies. Titled the I-95 Economic and Education Stimulus Act, the bill also establishes a gaming commission to oversee licensing and gambling operations.
According to the bill’s sponsor, Rep. Chris Murphy, the only counties currently meeting the legislation’s criteria are Dillon, Marlboro, and Orangeburg.
Under the federal Indian Gaming Regulatory Act, the existence of commercial gaming in the state would force the Governor to negotiate a gaming compact with Catawba Nation, which has long wanted to establish a casino in South Carolina. However, two of the eligible locations the bill lays out for the commercial casinos are within a three-hour drive of Two Kings Casino, which the Catawba recently established just across the border in North Carolina.
Bill would create cross-border competition
Situated on a reservation near Rock Hill, SC, the Catawba Nation—primarily located within South Carolina’s borders—is home to approximately 3,300 citizens.
However, the tribe has a congressionally established claim to land parcels in North Carolina and owns nearly 17 acres in Kings Mountain. There, it has established a temporary gaming space while building a permanent casino called Two Kings, which should open early next year.
Before shifting its gaming focus cross-border, the tribe sought a casino in its home state, but South Carolina laws prohibit everything but the lottery. If HB 4176 passes now, casinos established in Dillon or Marlborough would create cross-border competition for Two Kings.
Furthermore, developer Wallace Cheves—who backs the legislation—wants to build a casino resort in Santee, Orangeburg County. According to a Charlotte Observer report, the Catawba have wanted a Santee casino for over 20 years.
Complicating things further, Cheves and the Nation share a contentious history.
Cheves is the developer the Catawba cut ties with over an unlawful ownership agreement involving the Two Kings property. Per the Observer, the Nation views his involvement as his latest attempt to exploit it.
Chief Brian Harris told the paper Cheves is attempting to “ramrod” a casino into being.
In a written statement, Harris said the Nation still wants to open a casino in South Carolina.
The Catawba Nation, despite being a federally recognized Native American tribe in South Carolina, has for 30 years been prohibited from operating casino gaming on its lands. We have renewed those efforts to reverse this injustice in the state and are in the process of working toward a fairer settlement agreement that would allow us to operate casino gaming and give our people more opportunity for economic development.
Catawba and Cleves have complicated history
The Catawba began working with Cheves when SkyBoat—one of his development firms—helped it secure the land for its Two Kings property. Not long after, however, the relationship soured.
In 2022, the National Indian Gaming Commission (NIGC) ruled the lopsided contract between SkyBoat and Catawba violated federal law. Specifically, the NIGC said the deal gave SkyBoat too much power over a project to uplift the Catawba community. Based on the NIGC’s decision, in 2024, the two sides finalized a private settlement divesting SkyBoat from the project.
Cheves and Catawba clashed again when a company he holds a stake in bought the land surrounding the casino—including the parking lot and future expansion space. The company, Kings Mountain Land Development Partners (KMLDP), then unsuccessfully offered to lease it to the tribe for $6 million a year.
Tensions spiked again last December when KMLDP sued the Catawba Nation over property damage and trespassing claims. According to the lawsuit, the tribe removed dirt, crushed rock for road materials, and improperly altered drainage on the land “as if it belonged to the tribe.”
The Catawba has since claimed that while working as its casino developer, Cheves secretly purchased an abandoned outlet mall in Orangeburg County.
As the Observer reported, state and local records indicate Cheves’ attorney is the registered agent for the buyer. Further, the purchase occurred nine days after NIGC ruled that the Catawba-Cheves deal violated federal law.
Cheves has proposed opening his $1 billion casino at the Santee Outlet Mall if the state passes Murphy’s bill.
Said, Harris:
It is another example of Cheves’ trying to take advantage of the Catawba, just as he did by trapping us into an unfavorable ownership agreement and land-locked trust lands at Kings Mountain.
Despite hurdles, Murphy believes bill has a chance
Murphy, HB 4176’s sponsor, is also behind HB 3625, which would legalize sports betting in the state.
When Cheves approached him to back the casino effort, Murphy said he’d already been trying to legalize sports gambling. However, although he opted to take up the casino cause, he said the proposed legislation does not grant special status to any developer—including Cheves. Indeed, if passed, the Catawba Nation could bid for a casino in the eligible counties, like anyone else.
The casino bill—currently in committee—still needs to pass the House and Senate. If it does, voters must decide whether to hold a referendum to amend South Carolina’s constitution to permit gambling.
While there are hurdles ahead, Murphy told the Observer he thinks the odds are in his favor.
I’m gonna say 60/40 that it’ll pass. Just based on the fact that when people look at what’s gonna be generated and the benefits for the entire state of South Carolina, I just don’t think that that’s something you can ignore.
Bonus emailed Chief Brian Harris but received no response. Likewise, we could not reach Cheves, who had previously refused related media requests.
About the Author
