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After sudden closure, Casino by Vanshaw expected to reopen

Jan 3, 2017 | 1:54 PM

MEDICINE HAT, AB — After a sudden closure over the New Year`s Weekend, the Casino by Vanshaw at the Medicine Hat Lodge is expected to reopen later this week.

In a statement posted on the casino`s Facebook page, the Casino by Vanshaw said the Court of Queen’s Bench ordered the Medicine Hat Lodge to restore the casinos access to the Casino premises. The lodge took control of the casino on Monday at 8 a.m. and locked the doors, claiming in a memo the  lack of rent payment from Vanshaw Enterprises Ltd., the casino’s parent company, to the Lodge forced the lodge to terminate its lease.

On Tuesday, the casino had its access restored to the premises, following  an order from the Court of Queen`s Bench.

“We believe that the Medicine Hat Lodge has broken the law by locking us out and we will pursue further remedies`said Kevin Van Der Kooy, president of the casino, in the statement.  “We are also taking steps to move our facility to a more community supportive location.”

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

According to court documents, 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 read in the Court of Queen’s Bench in October 2016.

According to the documents, the primary concern raised during the suit 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.

The Alberta Gaming and Liquor Corporation is also looking into the matter. The Province collects money from casinos that operate in the Province. The AGLC says the closure will likely have a minimal impact on provincial funds if it is temporary.
Michelle Hynes-Dawson says the AGLC’s main concern right now is the charities who rely on the casino for funding.
“Charities will go in and use that as a revenue opportunity for them,” she said.

Hynes-Dawson was unable to provide information on which charities will be impacted by the closure. They confirmed there is at least one this week and could be more impacted depending on how long the closure lasts. She said they are looking into other options to minimize the impact.
“We have done a pooling type system in the past where we take a little from all the other casinos to make sure that the [charities] in that one area aren’t losing out because of those kind of business or legal disputes that may be happening.” said Hynes-Dawson.