After reaching an agreement amicably, Atlantic City’s biggest casino has dropped a lawsuit against its rival, Ocean Casino. The MGM Resorts International owned casino accused ocean casino of poaching its executive clients and stealing valuable trade secrets. MGM Resorts International stated on Friday that it had dropped its litigation against ocean casino after both parties agreed on settlement terms.
The court filing had no details of the litigation settlement apart from that the case was solved amicably. Yet, Ocean Casino maintained it had not done any wrong. But, MGM Resorts said in a statement that Ocean Casino had agreed to honor Borgata’s restrictive covenant.
Some of the things included in the agreement are for Ocean to follow non-compete agreement, non-solicitation, and respect confidentiality provisions meant to protect Borgata trade secrets. On the other hand, the accused said that she was glad the issue was resolved.
What Was in the Case File?
In August 2020, Borgata accused Ocean of poaching six of its best marketing executives. The suit explains that Ocean’s goal was to cripple its competitor by using details about its best and most profitable customers.
One issue was about an executive who moved to the Ocean while still in possession of Borgata’s cellphone. It is said that the phone could be containing priceless information about Borgata’s top clients, including cell phone numbers, gambling needs, favorite food and beverages, likes and dislikes.
Another thing that could have been on the phone is how much the casino is willing to discount its clients’ large losses. Also, the cellphone was holding information about instances when Borgata changed some game rules to top clients. Thankfully, a judge ordered the return of the cell phone.
Another claim made on the lawsuit is that the former Borgata executive oversaw clients bringing over $25 million a year to the casino. Ideally, each highest-level client spends a minimum of $1.5 million and up to $4 million per visit, totaling at least $25 million per year. In fact, the casino uses its corporate jet to fly these clients to and from various events hosted by Borgata casino.
Ex-Employees Signed a Non-Compete Agreement
Employees at Borgata casino are guided by a one-year non-compete agreement signed when working at the gaming property. So even after leaving Borgata for another gaming property, they are not supposed to work in fields related to their previous positions. For example, former employees, including Callahan and Kelly Ashman Burke, left Borgata for Ocean Casino.
The two worked in the marketing department at Borgata and shouldn’t work in the same field at Ocean for one year. Burke was even ordered to destroy copies of Borgata’s marketing strategies she had.
As these two also knew the preferences of various VIP clients at Borgata, they were forbidden to contact current Borgata’s client list. Also, they shouldn’t share or leak Borgata’s trade secret.
More About Borgata and Ocean Casino
Borgata is the leading gaming property in Atlantic City among nine platforms. But, with the recent lawsuit, it is indisputable that Ocean is its primary competitor.
Ocean was formerly known as Revel Casino. For two years of its operations, the casino did not come close to making a profit. It led to its closure in 2014, before reopening in 2018 under the Ocean brand.
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