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Poker players at a Montreal-area poker room were recently shown the door as the venue was shut down. Authorities with the Kanien’kehá:ka (Mohawk) community in the Kahnawake area allege that the Magic Palace poker room was operating gaming machines illegally and also engaged in other crimes.
Poker room management has denied the charges, but the room has been left closed. Kahnawake Peacekeepers (tribal law enforcement) entered the poker room on March 25 and told players to exit the building as officers closed down the facility and an adjacent restaurant.
“Closing a community business is always a last resort,” Gaming Portfolio Chief Cody Diabo said. “However, the allegations of conduct that were revealed in court records created serious concerns for the MCK, as it is our most important responsibility as a governing body to protect the health and safety of our community.”
Owners Deny Charges
The closure came after the Kahnawake Gaming Commission alleged Magic Palace was operating electronic gaming devices without a legal contract with the Mohawk Council which were also “used to commit money laundering and other crimes.”
The KGC has licensed and regulated online and land-based gaming within Kahnawake since 1996. That included online poker sites like Full Tilt Poker and Absolute Poker.
“The results of the investigation revealed that there was an undisclosed beneficial owner of Magic Palace, who exercised significant degrees of control over the establishment and received the majority of the benefits,” the KGC said.
The KGC said there were numerous investigations conducted at the property over the last few months. However, Magic Palace owners say the commission received false information from the Royal Canadian Mounted Police during the agency’s investigations. That includes information on a Montreal resident named Luftar Hysa.
“They’ve been there for about a year, and it stems from the fact that Mr. Hysa, who’s an investor, had some allegations made in Mexico where he has some casinos,” Magic Palace’s attorney Pierre L’Ecuyer told CTV. “Mr. Hysa has been completely cleared and it was clear that these allegations were made because people in the same business wanted Mr. Hysa out of the business.”
L’Ecuyer said the poker room hasn’t violated any laws and noted that the casino plans to appeal the ruling even to the Quebec Superior Court if necessary.
“There’s no criminal infraction whatsoever, no prostitution, no loansharking, nothing that ever came since Magic Palace has been in place,” he said.