Borgata, Ocean Casino Bury the ax in a trade secret trial
Borgata in Atlantic City cancels the fight with Ocean Casino Resort . Property MGM Resorts International she followed her city rival last August, making accusations of poaching and attempting to steal trade secrets. The two have reportedly now buried the ax, ready to spend their resources on restoring Atlantic City to normal after the COVID-19 pandemic.
Borgata and Ocean settle their differences
Borgata alleged in a lawsuit last August that Ocean was stealing some of its directors in an attempt to raise the level of the casino following the rollers. She accused her rival of hiring six marketing directors and thus violated the established non-competition agreements. Borgata has now withdrawn its lawsuit after both operators have "amicably" settled the disputes, although no terms of the settlement have been made public. For his part, Ocean still claims he didn't do anything wrong, but admits he is glad to go on. Gehenna reportedly was resolved late last month.
MGM Resorts, however, reiterates its claims that Ocean has breached existing agreements and believes the settlement confirms its allegations. He issued a statement that read in part, “Ocean has agreed to abide restrictive provisions of the Borgata , including non-compete, non-solicitation and confidentiality, all designed to protect the Borgata's trade secrets. " No information was given as to whether the Borgata was to receive any financial compensation from Ocean.
Atlantic City Casinos Desperate for Recovery
One of the arguments put forward by MGM was that the former Chief Marketing Officer, when he left the company, still had a phone issued by Borgata which contained vital information about many VIP customers who were known to spend up to $ 4 million every time they left the company. visit the casino. These people represented approx $ 25 million a year on assets, which would potentially give Ocean a big boost in the event of a COVID-19 gaming environment. As part of the settlement, Ocean will have to return the phone to the Borgata, and while the casino is expected to abide by its "confidentiality provisions," it still has access to names of potential VIPs that it may try to prosecute over time.
Months after the drama began to unfold, Ocean introduced new high-caliber gameplay that looked to be the start of post-pandemic recovery. There is still a long way to go in Atlantic City before things get back to normal, as revenues last year only hit 20% from a year earlier. However, Borgata is still the local market leader and will likely remain so for the foreseeable future. Despite the pandemic, it is ahead of Ocean in revenue and earns three times more revenue than its rival.