New Casino Gambling Project Proposed in South Carolina by Developer Behind North Carolina Tribal Resort

Wallace Cheves, a notable businessman from South Carolina, is looking to expand the regional entertainment landscape by focusing on the high-growth industry of casino gambling. By setting his sights on developing a new venue in Santee, Cheves aims to bring a fresh energy to the local economy, drawing on his significant experience from previously establishing a successful tribal casino in North Carolina.

A recent proposal aimed at legalizing casino gambling in South Carolina has emerged, hoping to create the first resort in the Santee River Valley located in Orangeburg County. Construction is slated to commence in June 2024 for the permanent, $700 million Two Kings Casino in North Carolina’s Kings Mountain. The visionary behind this new project is none other than Wallace Cheves, who has collaborated with the Catawba tribe to bring their casino aspirations to fruition.

Cheves has proposed a bold $1 billion plan for a casino and resort to be situated on the site of the defunct Santee Outlets, conveniently located just off Interstate 95. He believes that this potential destination could significantly revitalize Orangeburg County, where a staggering 22% of residents live in poverty. Cheves estimates that the casino could generate an impressive $8 billion economic impact over the first decade of operation in South Carolina.

In his statement, Cheves emphasized the potential benefits of regulated gaming, referencing that since 2002, the South Carolina Education Lottery has contributed over $8 billion to support education across the state, illustrating how gaming can have a lasting positive influence on the community.

Importantly, Cheves has committed to funding his project without relying on local or state taxpayer dollars, including avoiding incentives or subsidies.

Legal Landscape for Casinos in South Carolina

Local officials in Santee and nearby Vance are to meet with Cheves to discuss his ambitious vision. However, any changes to the current gambling laws, which presently limit legal gambling in South Carolina to the state-run lottery, will ultimately require voter approval. A proposed bill in the General Assembly, House Bill 4176, seeks to change that by allowing for the establishment of slot machines and live dealer table games, as well as sports betting and parimutuel wagering.

• Sports Betting: Could be included under the new bill for a wider array of gaming options.
• Revenue Allocation: Proposed tax revenue from new gaming would support local infrastructure such as highways and bridges.
• Political Challenges: The bill faces significant challenges, as previous gambling measures have frequently met with resistance in the GOP-controlled legislature.

As it stands, there’s been minimal progress with HB4176, which has been stagnant in the House Judiciary Committee since mid-January.

The Catawba’s Two Kings Project

The potential for South Carolina to legalize casinos and allow voter input on Cheves’ Santee project may be aided by his previous engagement with the Catawba tribe. While Cheves maintains a mixed reputation in the Carolinas—one characterized by his substantial contributions to Republican campaigns and a history of legal challenges—his influence in this space cannot be understated.

Cheves previously played a pivotal role in assisting the Catawba Indian Nation in their longstanding quest for a tribal casino in Kings Mountain, helping to navigate legalities that allowed for a Class III gaming facility. His company, Sky Boat Gaming, was intended to co-own and finance the Catawba’s $700 million Two Kings casino. However, questions were raised by the National Indian Gaming Commission (NIGC) regarding the fairness of the business arrangement, leading to Cheves’ exit from the project under contentious circumstances.

Following the NIGC’s decision, Cheves has been embroiled in a legal dispute with the tribe, stemming from allegations that construction vehicles infringed upon easement rights related to land he sold to the tribe for an extraordinary $40 million. As the lawsuit continues, Cheves is seeking financial damages.

Conclusion

In summary, Wallace Cheves seeks to establish a casino resort in South Carolina, drawing from his previous successes with the Catawba tribe. While the proposal faces many hurdles, including the need for legislative approval and overcoming historical resistance to gaming expansions, the potential economic benefits highlight a compelling case for change. The evolving landscape of casino gambling in South Carolina remains one to watch closely as developments unfold.