Customer Theft The Basis Of Lawsuit Against Harrah's Casino

It is not often that a tribal casino is concerned that another developer will steal their customers. When that other developer is Harrah's, however, and they have run your casino in the past, there becomes cause for concern.

The Prairie Band Potawatomie Nation was in court on Friday asking a judge to stop Harrah's from stealing their customers. Harrah's recently gained the rights to a casino contract in Kansas' Sumner County.

The tribe is alleging that Harrah's violated a non-compete clause that was in their contract back when Harrah's was running the tribe's casino. The contract was signed back in January.

Now, less than a year later, Harrah's will be operating a casino west of the tribal casino. The tribe has sued Harrah's last week and was in court on Friday to explain their case to the judge.

The tribe is seeking an injunction from the court that would stop Harrah's from being able to run the casino in Kansas. The agreement that was signed says that Harrah's could not, "develop, promote, or encourage the expansion of any casino gaming in the state" for one year.

It also says that Harrah's could not "engage in any casino business" in Kansas for two years. The casino will pin their hopes in the case on the argument that the Sumner casino will not be up and operating until 2010, which would be beyond the limitations of the agreement.

Harrah's lawyer, Richard Rhyne, claims it is Kansas that is going to hurt the tribal casino. "It is not Harrah's conduct that is causing a casino down there, it is the state of Kansas," he said.

August 30, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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