Great Canadian Gaming Corporation v. British Columbia Lottery Corporation

Randy was retained as lead counsel for Great Canadian Gaming Corporation (Great Canadian). He was assisted by Karen L.M. Carteri. Great Candain commenced a proceeding in B.C. Supreme Court to enjoin the B.C. Lottery Corporation (BCLC) from taking a marketing fee monthly from Great Canadian’s revenues from operations. Great Canadian also claimed for recovery of more than $35 million in marketing fees collected and paid to itself by BCLC since 2009.The central issue in dispute was whether the parties had agreed in 2009 and for the balance of the term under a Casino Operational Services Agreement to eliminate the marketing fee, or alternatively, had agreed to change the financial structure to substitute a commission payable to BCLC, of a different amount, in place of a marketing fee collected by BCLC in trust. Resolution of the dispute involved an interplay among issues of the tax treatment of fees collected, marketing of gaming, oral discussions and negotiations, agreement by conduct, contracts with other gaming service providers, and also included allegations of bad faith in contractual dealings. In 2018, after extensive pre trial document discoveries and oral examinations for discovery, BCLC decided unilaterally to stop taking the challenged payments from Great Canadian’s revenue from operations. As a consequence, the injunctive relief became unnecessary. However, the claim for damages of $35 million remained to be resolved. That claim was favourably settled in 2019 on the eve of a nine- week trial. The terms of the settlement are confidential.