The St. Regis Mohawks and a trust representing some major shareholders in Empire Resorts recently restarted a federal lawsuit attempting to bag $3 billion from the casino giant Harrah's.
The suit, filed in the U.S. Northern District, dates back to 2001 and alleges that Park Place Entertainment (which was later bought by Harrah's) duped the Mohawks into bolting from the Raceway to pursue a casino at Kutsher's.
This case has been batted around for years by the Mohawks tribal court, by top officials in the Interior Department and had one go in federal court.
The plaintiffs are asking the federal court to uphold a tribal court judgment awarding $1.8 billion, and interest at 9 percent a year since 2001.
Catskill Litigation Trust (essentially representing shareholders of the company that became Empire Resorts) will split the judgment with the Mohawks 50/50 — a nice consolation prize, indeed, if the casino at the Monticello Gaming & Raceway never gains federal approval.
Dennis Vacco, former New York state attorney general working with the trust, reviewed the Mohawks' confidential files in their dealings with Park Place and found information to bolster their case that Park Place committed fraud and manipulated tribal leaders.
"We are going to vigorously seek a court judgment," said Lorraine White, one of the Mohawks' three tribal chiefs.
Harrah's, which is being bought out by a group led by the Texas wheeler-dealer David Bonderman, has told their shareholders that the suit has been settled — but is also making some moves of its own. The casino giant is lobbying the Interior Department for a letter saying that tribal court is not a valid court.
The case has also brought changes at Empire Resorts, now partners again with the Mohawks in trying to bring Sullivan County's first casino.
Joseph Bernstein, a major shareholder, recently resigned from the board, believing he had a conflict of interest.
He is a named plaintiff and a co-trustee in the trust.
Bernstein said yesterday that Harrah's has emerged as the main threat to a Mohawk casino, and is making waves with Interior Secretary Dirk Kempthorne, who must still OK the casino.
Not only because the company is facing a $3 billion judgment, but also because it owns several casinos in Atlantic City and doesn't want a casino built 90 minutes from Manhattan.
"In my opinion, they are holding Kempthorne's pen," Bernstein said.
New UK casino, The Isle in Coventry, has responded to claims from a disgruntled customer that he was manhandled after a dispute over a roulette loss.
Mario Dejfar claimed he was manhandled by 15 security staff, ejected from the building after a disagreement, and left with cuts and bruises.
Dejfar believed his number had come up on one wheel, winning him £175, while he had moved on and was playing another. He later reported the incident to the police.
However, a spokesperson for the Isle told InterGaming that CCTV evidence had vindicated the casino.
"There was an incident where a customer lost on a spin and didn't accept it," she said. "However, CCTV is everywhere in the casino and proved our case. He's not disputing the decision now.
"All our security staff are totally professional and are very well trained and briefed on how to behave, and casino management has the utmost confidence that the incident was handled in the right way."
The spokesperson added that the casino, which is the largest in the UK and operated by Isle of Capri, had enjoyed a busy first week since its official opening earlier this month.
"It's been seen as a true entertainment centre, which is exactly what we hoped for," she concluded.
Celebrity chef Jean Christophe Novelli was due to open a £7 million new casino in the city today.
Circus Casino at Fountain Park will include a restaurant called "110", where chefs work in a theatre-style kitchen preparing food in front of guests.
The 27,000sq ft site also has a bar and the latest in electronic gaming, including roulette and slots. There's also a high stakes area for roulette and blackjack players and a poker room.
Stanley Casinos regional director Sotos Scholarios said: "It's our vision to put Circus Casino Fountain Park on the 'must see' map in Edinburgh - making it a top leisure destination that appeals to people of all ages looking for a lively night out. The casino employs about 100 people."
Mr Novelli worked in a bakery in France before moving to the UK to manage Keith Floyd's gastro-pub. He opened his own restaurant in London in 1996, and became head chef on TV show Hell's Kitchen in 2005.
Mayor David Miller and several Toronto councillors are considering allowing a full-scale casino at Woodbine Racetrack to help the city out of its financial crunch.
But they want a large share of the revenues from any roulette, craps or card games -- an idea the provincial government doesn't appear to support.
"There is a (slots) casino now at Woodbine and ... if they want to expand, I'd look at it, but only if the money comes down to the city," Miller said.
"There's no point of us even looking at it if the money keeps going to the province because casinos have a lot of downsides as well."
Councillor Adrian Heaps (Ward 36, Scarborough Southwest) backs a casino that would solely benefit Toronto.
"If we're going to have a casino, then we've better have 100 per cent of the revenue, and the province can stay out of it 100 per cent as well," he said.
The mayor is looking for additional sources of revenue after his proposal to raise $350 million through a land transfer tax and vehicle registration fee was deferred until after the October provincial election.
Toronto faces a potential $575 million budget shortfall next year. After the tax vote delay, Miller ordered spending within public service departments to be tightened and warned property tax increases could rise by up to 10 per cent next year.
He also said large cuts could be coming to the city's services.
The financial misery, however, is no reason for a casino, said Councillor Joe Mihevc.
"I don't like the aesthetics of a casino in Toronto. There are other places people can go -- Windsor, Niagara Falls and that -- let them go there," Mihevc said.
"I think there are a number of social ills that need to be looked at as well that come as a result of casinos."
Earlier this week council approved a $750 million development at Woodbine. The Rexdale facility will feature a skating rink and hotel, and it has more than enough room for a full casino.
While Woodbine Entertainment Group supports a municipal casino on its grounds, licensing is up to the province.
The Ontario government says such a proposal in not under consideration at the moment.
"We did announce a gaming strategy in January 2005 where we said no new gaming sites -- that is still in effect," a Ministry of Public Infrastructure and Renewal spokesperson told the Toronto Star.
Sources at Queen's Park said consultants hired by Woodbine have been lobbying the province to lift that moratorium, the Star reported.
About one-third of the Niagara casino's customers and half of Casino Rama's players come from the GTA, the newspaper reported.
Ontario Lottery and Gaming also owns two commercial casinos with private-sector partners, in Niagara Falls and Windsor.
Casinos and gambling facilities are a large source of revenue. A recent study said gambling contributes $15 billion to Canada's economy each year.
The St. Regis Mohawks and a trust representing some major shareholders in Empire Resorts recently restarted a federal lawsuit attempting to bag $3 billion from the casino giant Harrah's.
