Ameristar Casino in Colorado Faces Lawsuit from MAO Gaming for Alleged Trademark Violation
Mississippi company MAO Gaming has taken legal action against Penn Entertainment's (NASDAQ: PENN) Ameristar Casino in Black Hawk, Colo. The supplier alleges that the operator violated MAO's copyright on their unique variation of blackjack called STREAK.
STREAK, which was patented in 2001, is a side bet for blackjack. It allows players to wager on how many times they'll be dealt blackjack. This game is a favorite in many Las Vegas and regional casinos.
In a complaint filed in the U.S. District Court for the District of Colorado, MAO's lawyers argued that Ameristar Black Hawk had been publicizing, promoting, offering, and profiting from the unauthorized use of MAO's trademarks.
"After nearly fifteen years of annually-renewed licensed use at Ameristar Casino Black Hawk, PENN knowingly, intentionally, and willfully ignored its contractual obligations and infringed on MAO's iconic STREAK® brand by facilitating unlicensed STREAK® blackjack table games - one of the most successful casino table games ever developed," the legal document said.
MAO contends that Penn let this infringement continue for two years at the Black Hawk Casino Hotel. The lawsuit comes about two weeks after a card counter from Georgia sued the venue for illegal detention.
STREAK is MAO's 'Exclusive Property'
The legal document also mentions that each time they renewed their contracts, Penn agreed that STREAK was MAO's 'exclusive property' and had no right to use it without a license. Furthermore, the Colorado Casino Gaming Commission (CCGC) mandated that any casino operator wanting to feature STREAK at their blackjack tables had to obtain the license from MAO and adhere to their rules.
"These circumstances legitimize the categorization of Ameristar/PENN’s actions as willful and intentional. This starts with the fact that PENN’s business is casino gaming operations; it continues with the fact that Ameristar/PENN agreed via contract that all STREAK® products were the exclusive property of MAO, which they had no right to use without a license; it continues with the fact that Ameristar/PENN stipulated via contract that if they utilized STREAK® without a license, their conduct constituted willful infringement," the lawyers for MAO said in the filing.
According to the CCGC, to allow STREAK to be played on blackjack tables, operators have to use the approved STREAK table layout and must have one approved button with the retail licensee's name or logo.
MAO Implying Penn Knew It Was Infringing
In the legal document, MAO suggested that it would be "impossible" for Ameristar Black Hawk and Penn to not know that generating revenue from STREAK required obtaining a license from MAO. They also mentioned that PENN's conduct necessitated them to use deceptive practices with the Colorado Gaming Commission and make inaccurate statements about their regulatory compliance.
"PENN’s statements regarding its core business endeavors were disclosed to the market under its reporting and transparency obligations as a publicly traded company," the filing added.
Black Hawk, a small Colorado town, is home to one of the largest gaming scenes in the state, ranking it among the top 10 in the U.S. It is also one of the fastest-growing gaming markets. The four major Black Hawk operators are Bally's (NYSE: BALY), Caesars Entertainment (NASDAQ: CZR), Monarch Casino & Resort (NASDAQ: MCRI), and Penn.
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Source: www.casino.org
