Table games supplier MAO Gaming has filed a lawsuit against Penn Entertainment’s (NASDAQ: PENN) Ameristar Casino inwards Joseph Black Hawk, Colo. It claims the operator infringed on trademarks pertaining to MAO’s STREAK cosh game.
As of Dec. 1, 2001, Mississippi-based MAO held the rights to the STREAK fluctuation of blackjack, which was patent-protected. Put simply, STREAK is a face bet on touchstone vingt-et-un tables that allows bettors to wager how many times they’ll follow dealt blackjack. Typically, cosh is the most pop tabular array mettlesome inwards Las Vegas and regional casinos.
In a filing in the U.S. District Margaret Court for the District of Colorado, the counsel of MAO contended that Ameristar Black Hawk “advertised, promoted, offered, and at last profited from the wildcat and unlicensed enjoyment of MAO’s marks.”
“After almost xv (15) years of annually-renewed licensed employ at Ameristar Casino Negroid Hawk, PENN knowingly, intentionally, and willfully unheeded its contractual obligations and infringed on MAO’s iconic STREAK® firebrand past facilitating unlicensed STREAK® sap tabularise games – 1 of the most successful casino table games ever so developed,” according to the effectual document.
The filing added that MAO believes Penn allowed the infringement of STREAK trademarks to proceed unchecked for two years at the Shirley Temple Black Hawk Casino Hotel. MAO’s fit emerged around two weeks after a card counter from Sakartvelo sued the venue for illegal detainment.
STREAK ‘Exclusive Property’
Counsel for MAO also noted that with from each one yearly renewal William Penn committed to with the gaming supplier, the contracts specifically stated STREAK was the “exclusive property” of the supplier.
Additionally, the CO Casino Gaming Commission (CCGC) mandated that gaming operators seeking to lineament the blackjack face bets needed to follow licensed past MAO and had to offering the gamey inward accordance with the patent of invention holder’s rules.
“These circumstances legitimize the categorisation of Ameristar/PENN’s actions as willful and intentional,” added counsel for MAO inwards the court of law filing. “This begins with the fact PENN’s business organisation is casino gaming operations; it continues with the fact that Ameristar/PENN in agreement(p) via get that all STREAK® products were the scoop belongings of MAO, which they had no more correct to exercise without a license; it continues with the fact that Ameristar/PENN stipulated via contract that if they utilized STREAK® without a license, their direct constituted willful infringement.”
The CCGC clarifies how cassino operators tin offering STREAK at their twenty-one tables.
“STREAK may be played only if on tables displaying the approved STREAK tabularise layout and equipped with unity approved STREAK button for each player’s position,” noted the regulator. “The button shall hold typical markings as specified past MAO Gaming and shall exhibit the gens or logotype of the retail licensee offering the game.”
MAO Implies Penn Knew it Was Infringing
In the sound document, MAO claimed that given the nature of its contracts with Ameristar Joseph Black Hawk, it’d follow “impossible” for the operator and/or the venue not to cognize the power to generate revenue from STREAK rested solely with procuring a permit from MAO.
PENN’s deal required it to wage inwards deceptive practices with the Colorado Gaming Commission and relieve oneself inaccurate marketplace statements nigh the alleged regulatory compliance of its casino operations. PENN’s statements regarding its magnetic core byplay endeavors were disclosed to the marketplace under its reporting and transparence obligations as a publicly traded company,” according to the filing.
While it’s the smallest townsfolk inward Colorado, Shirley Temple Black Hawk is rest home to the state’s largest gaming view — ane that ranks as the 10th-largest and as the fastest-growing inwards the U.S. As such, on that point are investment implications because quaternary Negro Hawk operators are in public traded companies. In alphabetical order, they are Bally’s (NYSE: BALY), Caesars Entertainment (NASDAQ: CZR), Monarch Casino & Resort (NASDAQ: MCRI), and Penn.
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