Churchill Downs Agent Failed Online Gambling Bid

Published Wednesday, February 05, 2014 - Online-Casinos.com
Churchill Downs Agent Failed Online Gambling Bid

The gambling industry in the USA is undergoing massive change with the introduction of online gambling in some jurisdictions. The newest place to play online is now New Jersey which has had a rich but declining history of gambling in Atlantic City casinos. The competition for a piece the action in New Jersey is fierce and expensive with costs that some may think excessive. First of all any online gambling activity must be partnered with a brick and mortar casino resort in the jurisdiction.

The recent story that was published on the wdrb.com news web site from Kentucky has brought to light the seriousness of the competition and the possible intrigue that has been alleged by Churchill Downs Interactive Gaming, a wholly owned subsidiary, of Churchill Downs Inc. The company has file a law suit in Louisville, accusing New Jersey businessman Nicholas L. Ribis of failing to properly close a deal regarding the purchase of the Showboat Atlantic City Hotel and Casino from Caesars Entertainment Corp.

Churchill Downs Inc. was planning to create  "an internet gaming and online gambling system" connected to the Showboat property. Churchill Downs Interactive Gaming, was to be Showboat's "exclusive vendor" for online gambling in New Jersey.

 The defendant "Nicholas Ribis" was in a  2006 New York Times article described as a "long time casino industry figure. " Churchill Downs Inc. gave Ribis’ company NLR Entertainment $2.5 million in "earnest money" deposit and was to also give  his business an additional $7.5 million once the sale of Showboat closed no later than Jan. 31,2014.

 According to the suit filed in Jefferson Circuit Court there was  $10 million spent to purchase intellectual property and to hire more than 20 engineers to develop the online gaming platform for the Interactive Gaming division. The law suit is asking for restitution of the $2.5 million dollars deposit as well as unspecified damages.

 

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