Two Kings Casino Gambler Loses $1.5M in Jackpot Winnings After Pleading Guilty to Embezzlement

A Two Kings Casino gambler named Russel Hester hit $1.5 million in jackpots while playing the slot machines at the Catawba Indians’ casino in Kings Mountain, North Carolina. However, according to Joe Marusak of The Charlotte Observer, Hester lost it all in a federal courtroom in Asheville this week.

Two Kings Casino gambler pleaded guilty to embezzling $374,807 by using his state debit card to withdraw money

The former North Carolina ABC store manager pleaded guilty to embezzling $374,807 by using his state debit card to withdraw the money at the casino to gamble, U.S. Attorney Dena King said in a statement. The money was embezzled from the Alcohol Beverage Control Board of Rutherfordton.

Hester, 72, managed the ABC store in Rutherfordton for 10 years, prosecutors said. As store manager, Hester had access to, and control over, the Board’s financial accounts and records. He also wrote checks to pay bills and was responsible for creating the budget each year.

Additionally, Hester was responsible for providing all information needed for the annual independent third-party audit of the store. He admitted using the debit card 192 times at the casino over nearly two years.

He once hit an $18,350 jackpot, according to his written guilty plea and a federal indictment that charged him with wire fraud and money laundering.

Hester elected to have this jackpot issued in the form of a check. He then deposited the winnings into his personal bank account, prosecutors said. Plea documents revealed how he attempted to cover up his theft.

Hester submitted several fake bank statements, removed transactions from the casino

During his ABC board’s 2023 annual independent audit, Hester submitted several fake bank statements to the auditor, according to court records. He removed transactions from the casino and falsified bank account balances.

Furthermore, Hester is free pending a sentencing hearing that has not been scheduled. Wire fraud carries up to 20 years in prison and money laundering a maximum 10 years.

According to a news release from the U.S. Attorney’s Office for the Western District of North Carolina, King commended IRS and postal service investigators. She also thanked the Rutherfordton Police Department for investigating the embezzlement.

The Catawba Nation, based in Rock Hill, South Carolina, has operated a single-level, temporary casino in Kings Mountain since 2021, off Interstate 85 about 35 miles west of Charlotte.

Tribal officials said they plan to open their permanent, $700-million Catawba Two Kings Casino Resort in early 2026.