In Kinder, Louisiana, federal regulators have suspended Todd Stewart, former general manager of the Coushatta Casino Resort, following failures to disclose alleged fraud during the 2023 fiscal audit. The casino, Louisiana’s largest tribal gaming establishment, is currently undergoing a $150 million expansion and employs approximately 2,600 workers. Meanwhile, former tribal chairman Jonathan Cernek is under federal investigation linked to the misappropriation of more than $100,000 in casino funds revealed in a recent audit.
Todd Stewart
Shawna Castellano, regional director of the National Indian Gaming Commission, criticized management shortcomings, stating, “Lack of transparency and nondisclosure of suspected fraud compromises tribal gaming integrity and violates federal regulations designed to protect tribal assets and stakeholders.” Castellano emphasized the importance of regulatory compliance to uphold public confidence and fiscal responsibility in tribal gaming operations.
The National Indian Gaming Commission enforces provisions under the Indian Gaming Regulatory Act (IGRA), which requires timely reporting of financial discrepancies by tribal gaming operators. Stewart’s omission of fraud suspicions during critical audits and financing negotiations breaches these statutory requirements. This regulatory intervention initiates potential disciplinary procedures, including license suspension and revocation, reflecting heightened federal scrutiny over governance adherence in tribal gaming structures.
former tribal chairman Jonathan Cernek
The impact of this regulatory action is multifaceted. Economically, the suspension threatens to delay the casino expansion and destabilize investor and community trust. Operationally, staff morale and local employment supported by the casino face uncertainty amid leadership disruptions. These challenges risk reputational damage to tribal gaming enterprises in Louisiana as regulators enforce stricter oversight and corrective measures.
