A judge has ordered the British Columbia Lottery Corp. (BCLC) to pay casino winnings to a couple of gamblers who’d signed up for BCLC’s voluntary self-exclusion program yet continued to visit BCLC-managed casinos. Hamidreza Haghdust and Michael Lee had been unable to collect on jackpots worth $35k and $42.5k respectively because BCLC has a policy under which problem gamblers who sign up for the province’s self-exclusion program aren’t allowed to collect winnings earned at BCLC casinos.
BCLC had instituted the tough-love approach in April 2009, but the province didn’t get around to amending the necessary laws until June 2010. Both of the men who filed the class action suit against BCLC had won their windfalls during this 14-month period. On Thursday, BC Supreme Court Justice John Savage ruled that BCLC didn’t have the legal authority to withhold jackpots earned during this window. The ruling leaves BCLC on the hook for paying out around $450k to affected gamblers, but any jackpots earned after June 2010 will remain uncollectable.
BCLC may be able to recoup at least some of the sums it owes these gamblers with money it’s attempting to claw back from former BCLC CEO Michael Graydon (pictured). If you’ll recall, Graydon abruptly resigned his position earlier this year to take a job with a subsidiary of Paragon Gaming, a private firm looking to build a casino in downtown Vancouver. Despite resigning before his contract was up, Graydon collected a severance package worth over $114k. Earlier this week, an internal audit determined that Graydon had breached ethical standards by secretly negotiating the terms of his new private sector gig months before he submitted his resignation.
On Thursday, BCLC announced it would be asking Graydon to repay $55k of his golden handshake. The crown corporation’s lawyers sent Graydon a letter on July 11 asking him to repay the sum by Tuesday (22). According to the Vancouver Sun, the letter says BCLC’s board “would not have agreed to pay these monies had they received full disclosure” of Graydon’s activities. Repayment of the $55k “will provide redress for monies that were paid to you based on your incomplete … representations.”
Making matters worse, the audit’s findings means the BC Gaming Policy and Enforcement Branch is conducting an investigation into whether Graydon is still suitable to serve as a registered gaming official. The BCLC letter to Graydon warned him not to engage in “any dealings with BCLC, including any communications or contact with BCLC employees” until the regulators have finished their review.
Shane Simpson, a member of the opposition New Democratic Party, suggested that Graydon’s new bosses would likely insist on him paying up, noting that Paragon will require a healthy relationship with BCLC if it wants its Vancouver plans to go ahead. “I don’t see how [Graydon] has a relationship with [Paragon] if he doesn’t make good on this. He has a significant problem, but it only gets worse if he doesn’t pay.”
