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The Kahnawake Gaming Commission has decided to revoke the license of Magic Palace, Luftar Hysa, suspected of using the casino to launder money for a Mexican drug cartel.
According to local media , the cancellation of Luftar Hysa's license was decided a day after a La Presse investigation was published that claimed he had ties to organized crime and outlined a financial relationship with "Magice Palace" and his restaurant Mirela's.
"Magic Palace" and Mirela have vowed to cut off all ties with Hysa immediately. However, the company's operations are so far unsanctioned as many questions remain unanswered.
"It makes me very angry because the shady activity that goes on in these establishments is well known in the community and it takes an outside entity to shine a light on it before anything is done," said community member Jeremiah Johnson.
Last year, the Magic Palace contributed $4 million to MCK coffers through the Electronic Gaming Device (EGD) pilot project as one of two community businesses licensed to participate, according to MCK CEO Ryan Montour . Although the pilot project ended earlier this year, electronic gaming continues in regulatory limbo as the MCK and KGC glacially determine the fate of video lottery machines in a community that has voted against casinos in three referendums.
“The community voted against a casino for this very reason, because we did not want gangsters and organized crime to infiltrate our community and gaming operations. And this is exactly what happened under the nose of MCK and KGC" , said Johnson.
EGDs raised nearly $15 million for MCK in fiscal year 2022-2023. Despite the dollars poured into MCK, Ryan Montour, who heads the two respective portfolios — public safety and regulatory boards, commissions and labor — said money is no consideration when it comes to safety.
On Tuesday, a week after a 'bombshell' report from La Presse, which has not gone to court, the Mohawk Council of Kahnawake (MCK) met with representatives of Magic Palace and Mirela. Stanley Myiow, an owner of the operation whose name is linked to the alleged financial transactions in the report, did not attend.
"Magic Palace has consistently strived to maintain integrity and compliance within the gaming industry ," said a press release issued this week by Magic Palace and Mirela.
“Magic Palace would like to emphasize their continued commitment to complying with all relevant regulations within the jurisdiction. Moving forward, Magic Palace remains committed to maintaining a working relationship with the Kahnawake Mohawk Council and the Kahnawake Gaming Commission, and believes in the importance of building trust and transparency within the industry and community.
Magic Palace and Mirela's chief executive Mark Jocks declined to answer questions from The Eastern Door, citing an active investigation into Hysa. "I would not be able to comment much beyond what is in the Magic Palace/Mirela press release at this point in time," he said.
However, the organization's entanglement with Hysa and the financial irregularities alleged in the report date back at least five years, leading some members of the community to be skeptical about the business' promise of transparency.
Montour said the Council chiefs' diverse professional backgrounds equip the panel — which includes legal and law enforcement expertise — to respond effectively.
He emphasized that no charges have been filed in Albania, Mexico or Canada regarding this situation. According to him, the involvement and alleged involvement of "Magice Palace" in the La Presse investigation is mainly related to Mirela's restaurant.
While Hysa's license was unanimously revoked by the KGC at a meeting called on October 4, Montour suggested it was a coincidence that it came the day after the news broke.
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