By Leah Murray

Casino suddenly closes

Jan 3, 2017 | 9:42 AM

MEDICINE HAT, AB — The Casino by Vanshaw at the Medicine Hat Lodge suddenly closed over the New Year’s weekend.

A memo posted at the building stated the casino would be closed until further notice. The memo states the closure is in relation to a lack of rent payment from Vanshaw Enterprises Ltd., the casino’s parent company, to the Lodge, causing the lodge to terminate its lease with the casino.

The sign states the Lodge is hoping the closure of the casino will only be temporary.

CHAT News has learned more about the rent dispute between the two sides which has led to the closure.

Vanshaw Enterprises brought a lawsuit against Mayfield Investments Ltd., the parent company of the Lodge, with the casino alleging it had been over-paying rent since the lease agreement between the parties was amended in 2014. The judgment was heard in the Court of Queen’s Bench in October 2016.

Steam-powered passenger train to pass through Medicine Hat on Saturday

50m ago

Medicine Hat Public Library Comic Con taking place May 4

3h ago

Young minds, big ideas: Elementary students learn about urban planning with 'Box City'

Apr 25, 2024

According to court documents, the primary concern raised during the case was in relation to Elements Entertainment Lounge, a restaurant operated by the Lodge inside the casino. The lounge was built to meet an Alberta Gaming and Liquor Commission requirement to provide food and beverage service to the casino’s patrons. Issues arose about whether the lounge was part of the casino’s leased area.

A judgement delivered in October ruled in favour of the Lodge. The judge said the Lodge would be in a position to terminate its lease with the casino, but also added “it would not be acting in its best interest” to terminate the lease, according to the judgement. The judge assumed both the casino and the lodge would find a compromise to pay the rent-owing.

The amount of rent owed by the casino to the Lodge was not listed in the judgement, as the total is constantly in flux. At the time the suit was filed, the casino was paying $61,000 a month in rent.