Venetian sued by Comdex

Friday, Oct. 20, 2000 | 11:28 a.m.

The operators of the Comdex computer trade show have filed suit against the Venetian hotel-casino for allegedly reneging on a contract to supply ballroom space and for demanding a $1.2 million security deposit on the Sands Expo Center.

In the suit, Key3Media, a Needham, Mass., spinoff company of magazine publisher Ziff-Davis, accuses Venetian Chairman Sheldon Adelson of retaliating against the trade show for scheduling its keynote speakers at other Las Vegas properties.

Organizers of the show said in September that Microsoft Corp. Chairman Bill Gates would speak at the MGM Grand Garden arena at the show's kickoff event Nov. 12 in order to get all spectators in the hall. In past shows, about 6,000 have been able to see Gates live, but others were shuffled to other rooms where they saw the address on closed-circuit television.

Other Comdex speakers are scheduled to make addresses at the Las Vegas Hilton. The Venetian was the main venue for speakers last year.

The suit also complains that this year's show has been denied credit and Key3Media has been asked to post a cash deposit for use of the Sands Expo Center for the Comdex trade show.

Organizers also said they were informed that the Venetian has retaken additional space that they agreed in advance to hold in reserve, but that the hotel-casino is threatening to sell it to other users. The suit says the Venetian offered the space back to Key3Media for $3 million.

The suit, filed in Clark County District Court Wednesday, asks a judge to declare that the organizers do not have to pay a security deposit and that they are entitled to use the space. It also asks that show organizers not be required to pay for the space in reserve.

Venetian officials could not be reached for comment.