Aldrich Law Firm, Ltd.
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Revealing too many casino secrets can lead to legal trouble

Company privacy policies, written out in handbooks, are often given to workers by human resource departments. Non-compete and confidentiality agreements, given to managers, prohibit the disclosing of information held valuable to the company. Commercial litigation often involves disputes between businesses and workers accused of violated these principles, sometimes because they accept a job from a competitor after they leave.

In the gaming industry, there have been several recent cases involving non-compete agreement violations. A prominent COO said compliance with contracts and ethical work practices are all that are necessary to avoid problems. In several incidents, involving large corporations, executives have been accused of using confidential company information in one way or another.

For example, Pinnacle Entertainment sued its former CEO in 2010 on an allegation that he recruited company employees for an out of state casino. The corporation lost this suit. Two nightclubs, jointly managed by Paris Las Vegas and Planet Hollywood, sued the Tropicana in 2011, when three executives went to work for a nightclub on the latter’s property. Non-compete agreements were allegedly violated by the executives; the case has not yet been closed.

A former executive for Cantor gaming, who now works for a competing sports book operator in Nevada, has been accused of violating non-compete and confidentiality agreements. People accused of using contact information can also be the subject of commercial litigation. A former casino host for The Palms was accused of misappropriating contact information of high rollers, while Gaming Partners International sued a former sales executive for a similar reason. The executive counter-sued, claiming defamation by the CEO and denying of commissions and severance payments on the company’s part.

Claims in these litigation cases are often two-sided. A good attorney, therefore, is needed to help sift through the details and follow the law in arriving at the best solution.

Source: VEGAS INC, “Loose lips can result in litigation,” Steve Green, Oct. 8, 2012

John P. Aldrich
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