• The Magic Palace’s casino license was revoked amid cartel allegations
• Owners claim denial of due process and financial losses
• Lawsuit alleges a conflict of interest within the tribal council

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The co-owners of the shuttered Magic Palace have launched a significant legal battle against the Mohawk Council of Kahnawake (MCK), centering their argument on the unlawful revocation of their casino license. They claim that the sudden termination of their gaming operations was not only a violation of their business rights but also a direct infringement on their constitutional right to due process regarding the management of their casino license.

The crux of the issue began in March 2024, when the MCK revoked the Magic Palace’s operating license after media reports suggested that the RCMP was investigating one of the casino’s international investors.

Interestingly, in October 2023, La Presse revealed that Luftar Hysa, an Albanian-born individual, was alleged to be involved in laundering money for Mexican traffickers through a casino operating in Kahnawake.

These allegations suggest a direct link to the Sinaloa cartel, notorious for being one of the deadliest drug trafficking syndicates globally, as documented in various legal documents reviewed by La Presse.

After being made aware of the allegations, Magic Palace severed its ties with its primary investor, a decision that was publicly commended by the MCK.

Claims of Baseless Allegations

Stanley Myiow and Barry Alfred, the casino operators behind the lawsuit, contend that the accusations against them were unfounded and manipulated to facilitate a strategy aimed at disabling their business without proper hearings or substantiated evidence.

Moreover, it is claimed that they were not granted an opportunity to challenge these allegations, leading to substantial financial impacts, including the halting of a previously planned expansion project.

According to the lawsuit, by suspending the casino’s license and immediately cancelling the royalty agreement, MCK engineered a situation that precluded the Kahnawake Gaming Commission (KGC) from conducting a hearing.

The KGC mandates an active royalty agreement to consider any case, thus the termination effectively obstructed the casino from mounting a defensive case—a true “regulatory Catch-22,” as described in the lawsuit.

Allegations of Conflict of Interest

Furthermore, the lawsuit highlights possible conflicts of interest involving a council member who did not recuse himself from discussions or decisions regarding Magic Palace, despite existing ties to a rival gaming establishment, Playground Poker.

“Emerging evidence now affirms our longstanding stance: the MCK’s actions stemmed from incorrect and misleading claims, alongside blatant flouting of due process,” said the plaintiffs, as referenced in a report from The Eastern Door. “These revelations need to be acknowledged and are explicitly noted in public proceedings, illustrating a continual pattern of impropriety.”