The Kahnawake Gaming Fee (KGC) has closed down the Magic Palace Montreal and suspended its gaming license on account of an ongoing cash laundering investigation.
Luftar Hysa seems on Albanian tv, above, to denounce alleged hyperlinks to the Sinaloa Cartel. The businessman is an “investor” in Magic Palace, based on a authorized consultant for the on line casino. (Picture: CNA)
The on line casino, primarily based within the Kahnawake Mohawk Territory, throughout the river from Montreal, Canada, says it plans to attraction the choice.
Tribal police arrived on the on line casino on Monday, informed clients to depart, and closed the doorways. The KGC mentioned in an announcement it had taken the motion due to “quite a few considerations arising out of investigations performed over the previous a number of months.”
“The impact of this directive is that Magic Palace should instantly shut all of its gaming operations — together with each Digital Gaming Gadgets and Poker Room tables — pending additional determination by the Fee,” the discharge reads.
Sinaloa Allegations
In October 2023, La Presse reported that an investor in Magic Palace, Albanian-born Luftar Hysa, “recycles cash from Mexican traffickers and that he makes use of a on line casino in Kahnawake to take action.”
Hysa is being investigated in three international locations for hyperlinks to Mexico’s Sinaloa Cartel, one of the highly effective and violent drug-trafficking organizations on the planet, based on court docket paperwork seen by La Presse.
The whole lot signifies that Luftar Ali Hysa infiltrated the Kahnawake Indian reservation to facilitate cash laundering actions on behalf of the Mexican Sinaloa Cartel, in addition to for his personal account,” an RCMP officer informed the Montreal courthouse beneath oath, based on La Presse.
The gaming fee in October discovered Hysa unsuitable to be licensed as a key particular person, and the Magic Palace apparently severed ties with him.
‘Undisclosed Beneficiary’
In the meantime, the Mohawk Council of Kahnawake employed a U.S. agency specializing in on line casino audits to analyze. In an announcement Tuesday, the council mentioned the investigation revealed there was an “undisclosed beneficiary proprietor of the Magic Palace” who isn’t a member of the Mohawk First Nation.
The beneficiary exercised vital management over the on line casino and acquired most of its income, based on the council. This is able to be a violation of the phrases of the on line casino’s proper to function on the reservation, which should be for the nice of the neighborhood, the council mentioned.
Lawyer Pierre L’Ecuyer represents Magic Palace homeowners Barry Alfred and Stan Myiow. He confirmed that Hysa was an “investor” within the on line casino, however prompt the RCMP gave “false info” to the gaming fee about cartel hyperlinks.
“[Hysa] had some allegations made in Mexico the place he has some casinos,” L’Ecuyer informed La Presse. “Mr. Hysa has been utterly cleared and it was clear that these allegations have been made as a result of individuals in the identical enterprise wished Mr. Hysa out of the enterprise.”
