On September 8, federal regulators called for the Coushatta Tribal Gaming Commission to sever all ties with Todd Stewart, the former general manager of the Coushatta Casino Resort in Kinder, Louisiana. The National Indian Gaming Commission (NIGC) has requested Stewart’s license be suspended due to his failure to report suspected fraud.
The request follows a series of events that began with allegations against former tribal chairman Johnathan Cernek. In 2024, Cernek was accused of misusing gaming revenue, a claim later corroborated by an audit. An independent audit by the Louisiana Legislative Auditor further revealed that the tribe’s leadership had not adequately tracked credit card usage, leading to unaccounted-for purchases exceeding $100,000 over two months. Reports indicated that Cernek, along with potential accomplices, misused these credit cards to embezzle at least $350,000. As a result, Cernek resigned in August 2024, and Crystal Williams was appointed acting chairperson. David Sickey officially took over as chairman on June 13.
During an interview in June, Stewart admitted to not reporting the suspected fraud to external auditors during the 2023 fiscal year audit. More concerning was his failure to inform a potential lender of a $150 million construction loan about the issue. The loan was intended for a new hotel project, which the casino was pursuing in March 2024. Stewart’s oversight was significant, as the financial health and transparency of the casino were critical to securing the loan.
The letter from NIGC also highlighted Stewart’s lack of clarity regarding the number of credit cards linked to the casino’s accounts and his uncertainty about who was using them. In response to these findings, the tribal council has removed the credit cards and established a formal policy for expense reporting and reimbursement.
The situation has raised broader concerns about the governance and financial oversight within tribal gaming operations. While some see the NIGC’s intervention as necessary to maintain integrity, others argue it highlights systemic issues that need addressing within the industry. One perspective suggests that the financial missteps at the Coushatta Casino are symptomatic of larger problems, where insufficient checks and balances allow such oversights to occur.
In the aftermath of Cernek’s resignation, and the subsequent audits, the tribal council removed the legislative audit’s report from the official website. This decision sparked debate over transparency and whether it was appropriate for the state to post such reports, with an attorney from the auditor’s office noting that tribal entities are not required to disclose these findings publicly.
The directive from federal regulators mandates that the Coushatta Tribal Gaming Commission issue a notice for Stewart’s potential license revocation, with regulators needing to be informed within 45 days. This move underscores the serious nature of the allegations and the importance of regulatory compliance in maintaining trust in the gaming industry.
While some industry insiders view the suspension request as a necessary step to uphold ethical standards, others express concern about the precedent it sets for tribal sovereignty and self-regulation. The situation at the Coushatta Casino serves as a reminder of the delicate balance between regulatory oversight and respect for tribal governance. As the gaming industry continues to grow, these issues will likely prompt ongoing discussions about best practices for financial management and accountability.
The unfolding events at the Coushatta Casino have prompted introspection across the industry, with stakeholders recognizing the importance of vigilant financial oversight. As the tribe moves forward, the lessons learned from this situation may serve as a catalyst for implementing more robust financial controls and fostering a culture of transparency and accountability.
As the deadline for Stewart’s hearing approaches, the outcome will be closely watched by both regulators and the gaming community. The case underscores the need for ongoing vigilance to prevent similar occurrences and protect the integrity of tribal gaming operations. The situation also highlights the complexities involved in balancing regulatory oversight with tribal autonomy, a topic that remains a pivotal aspect of the broader conversation surrounding the future of tribal gaming in the United States.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
