The Mohawk Council of Kahnawake is being sued for $220 million by the co-owners of Montreal’s Magic Palace casino, who claim that their gaming license was illegally revoked, causing them significant financial harm and a violation of due process.
The co-owners of Montreal’s shuttered Magic Palace casino have launched a $220 million lawsuit against the Mohawk Council of Kahnawake (MCK), claiming the tribal regulator illegally closed their gaming activities and violated their constitutional right to due process.
At the centre of the controversy is the council’s decision to cancel Magic Palace’s license in March 2024. This came after media reports said that the RCMP was investigating one of the casino’s overseas investors.
In October 2023, La Presse claimed that Albanian-born Luftar Hysa “recycles money from Mexican traffickers and uses a casino in Kahnawake.”
Hysa is being probed in three countries for ties to Mexico’s Sinaloa cartel, one of the world’s most powerful and ruthless drug-trafficking groups, according to court records quoted by La Presse.
The casino terminated connections with its key investor the next day, a decision welcomed by MCK in a news statement.
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Stanley Myiow and Barry Alfred, casino operators, argue in their complaint that the claims were unfounded and used to support a campaign to shut down their business without a hearing or clear proof.
The plaintiffs argue that they were never given the opportunity to react to the claims. The complaint claims that the casino’s shutdown caused considerable financial damage, including the termination of a planned expansion project.
A recently updated case seeks $220.57 million in damages, including $155 million for the expansion, which would account for a significant chunk of the council’s latest stated net financial assets.
The plaintiffs argue that by suspending the license and immediately terminating the royalty agreement, the MCK created a circumstance in which the Kahnawake Gaming Commission (KGC) would not hold a hearing.
Courtesy: https://igamingexpert.com/, https://www.igbnorthamerica.com/, https://gamingamerica.com/news/
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