Caesars Takes MGC Chairman to Court, While SGG Denies Key Claim

Casino operator Caesars Entertainment’s lawsuit against Stephen Crosby, chairman of the Massachusetts Gaming Commission (MGC), has had one of it’s main arguments refuted by Spectrum Gaming Group

Caesars filed a suit claiming that Crosby has engaged in “discriminatory, biased and unfair disruption” of the casinos’ bid for obtaining Boston casino license. This step is not surprising after MGC found Caesars “unsuitable to conduct casino operations in the state” back in October, according to American gambling laws.

MGC supported their decision by claiming that the investigators discovered a connection between Caesars investor and Russian gangsters. Caesars responded to the accusation by claiming, on the other hand that Crosby had “intentionally and wrongfully” understated their Boston bid.

Casino operator suspected that the real reason behind the denial was their competitor Wynn Resorts, also bidding for a license. However, Wynn’s business involves a real estate that is owned by a former business partner of Crosby and this is why Caesars became doubtful.

Caesars’ lawsuit also claimed that Spectrum, which was appointed by the MGC and the state’s Investigations and Enforcement Bureau (IEB) to conduct the investigation on sustainability, “had in fact recommended that [Caesars] be found suitable.” Caesars expressed even further claims explaining the connection between Crosby and IEB, hoping to prove their point.

Disappointingly for Caesars, Steve Ingins, Spectrum’s legal representative, claimed the exclusive gambling news that: “Spectrum had submitted a draft report to the IEB recommending that certain specified issues pertaining to Caesars’ suitability be addressed at an adjudicatory hearing, at which Caesars would be required to establish its suitability by clear and convincing evidence.

He concluded: “Notably, Spectrum did not recommend a finding of suitability or a finding of unsuitability in its draft report,” therefore Caesars strategy was cracked and lost its major claim.

With their other premises, including online casinos in the US, operating under the Caesar’s brand, the giant has plenty of options to grow, while the Massachusetts license case is resolved.