New Deal Leads to Slots Casino Court Fight
Harrah’s Entertainment, Inc. could be looking at a major lawsuit based on information that was disclosed during the release of the slots company’s quarterly earnings report. It turns out that back in 2000 Arthur Goldberg, who was the CEO of Park Place Entertainment Corp., signed a deal with the St. Regis Mohawk Tribe to build a slots casino.
They signed for the exclusive rights to build a slots casino in the Catskills in New York, and it was to be a joint development. However, the tribe’s current leaders say that this was simply a way to protect profits coming in from four of their casinos in NJ, all of which are now owned by the company’s successor – Harrah’s. They say that the deal eliminated a deal that they had to build said slots casino in the area, but it still has not been.
The tribe sued Park Place for $1.8 billion and won because the company did not show up for the trial. However, as it was not paid, $1 million in interest was tacked on and the tribe is still looking for payment. With Harrah’s already facing a $13.9 billion debt, private equity buyers looking at the company might just be rethinking that decision.
he tribe says that Harrah’s has never taken the case seriously, and they are going to lose to the tune of an additional $440,000 per day. Harrah’s says that they are not going to discuss any lawsuits in progress, and that they are “vigorously” contesting any attempts of the court to enforce the judgment.
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