Harrah’s refiles lawsuit against Penn National

Wednesday, Feb. 20, 2002 | 10:44 a.m.

Harrah's Entertainment Inc. has taken its legal battle over a West Virginia racetrack to a Philadelphia federal court.

Harrah's subsidiary Showboat Development Co. first filed suit against Penn National Gaming Inc. in Las Vegas federal court last year. Showboat claimed it held an option to operate a casino at a racetrack in Charles Town, W.Va., should casino gaming become legal in that state. Showboat also claimed a right of first refusal to buy the track from its developer, Bryant Development Co.

The track was sold to Penn National, which now operates more than 1,500 slot machines there. Showboat accused Penn National in its lawsuit of usurping its rights to operate a casino at the track, and accused Bryant of violating its right of first refusal on a sale.

Penn National held that West Virginia law still doesn't permit casino gaming, noting that table games, sports betting and keno are banned. It claimed the Showboat agreement was not specific on which activities constituted "casino gaming."

The lawsuit was dismissed in January, as a federal judge here said he didn't have jurisdiction over the case.

Penn National announced Tuesday that Showboat has sued it again, this time in Philadelphia federal court. Though it has yet to be served with a copy of the lawsuit, "the company has no reason to believe that the substance of this lawsuit is different from Showboat's previous claim," Penn National said.

"The company intends to vigorously defend itself against all claims in connection with this action," Penn National said.