New Jersey’s Supreme Court has ruled against Ocean Casino Resort, stating that the Atlantic City casino is not entitled to payouts from business interruption insurance for losses during the COVID-19 outbreak. Despite the operator’s claims, it has enjoyed positive financial results, successfully rebounding from the pandemic and maintaining its position as one of Atlantic City’s leading venues.

The Operator Failed to Present a Convincing Argument

The case involved Ocean Casino Resort’s claims against three insurance companies: AIG Specialty Insurance Co., American Guarantee & Liability Insurance Co., and Interstate Fire & Casualty Co. These insurers mostly denied payouts, asserting that the casino did not suffer direct physical loss or damage due to the virus. Ocean Casino Resort initially defeated an attempt by insurers to dismiss the case, but an appellate court later reversed that decision.

The New Jersey Supreme Court subsequently took on the case to settle the legal question of what constituted loss or damage. According to its unanimous decision, the company had to demonstrate a direct physical loss or damage to its property, rendering it unusable or uninhabitable. Since the aftermath of COVID-19 failed to meet this criteria, Ocean Casino was not eligible for a payout.

At most, it has alleged that it sustained a loss of business… because it was not permitted to use its property as it would otherwise have done.

New Jersey Supreme Court statement

This ruling aligns with decisions in various state and federal courts nationwide, which denied insurance claims related to business interruptions during the COVID-19 pandemic. Similar cases involved movie theaters in California, a real estate firm in Los Angeles, hotels in Pennsylvania, and a law firm in New Jersey.

Atlantic City Has Largely Moved On from the Pandemic

Despite Ocean Casino Resort’s claims, the high-profile venue has mostly recovered from the pandemic and is enjoying an impressive resurgence. November 2023’s financial results revealed that the casino posted $48.1 million in total gaming revenue in October, up 52.6% compared to the same month in 2022. 

Even without the insurance funds, Ocean Casino Resort is well-positioned to capitalize on gambling’s growing popularity in the USA. The region has achieved an impressive balance between land-based and online operators, allowing physical venues to focus on bettors seeking a more comprehensive leisure experience, particularly the VIP crowd. 

The New Jersey Supreme Court’s decision can benefit the sector in the long term, reaffirming US regulators’ overall stance on this matter. It is high time operators moved on from the pandemic to focus on the future, seizing new opportunities and focusing on providing customers with the best possible experience.

The post NJ Supreme Court Rules against Ocean Casino Resort in COVID-19 Insurance Dispute appeared first on Keno Wizard.

Former New Hampshire senator Andy Sanborn, owner of the Concord Casino, is now under intense scrutiny after allegations of COVID-19 relief fraud and extravagant personal spending. The state’s Attorney General John Formella and the Lottery Commission jointly announced that Sanborn is considered “not suitable” to be involved in charitable gaming due to the alleged misconduct.

Sanborn Accused of Fraudulently Obtaining COVID-19 Loan and Lavish Spending

The investigation by the Attorney General’s Office uncovered that Sanborn purportedly fraudulently secured a COVID-19 Economic Injury Disaster Loan of $844,000 from the Small Business Association, reported NBC Boston. It is claimed that he diverted these funds for personal use, including the purchase of high-end vehicles. The funds were reportedly used to buy two Porsche 987 Cayman S race cars for himself and a Ferrari F430 for his wife, state Rep. Laurie Sanborn. The couple is also accused of disguising personal expenses as business-related transactions, with Sanborn funneling $183,500 into his accounts under the guise of rent payments.

Sanborn’s actions not only raise concerns about financial misconduct but also impact his involvement in the charitable gaming sector. The Lottery Commission is pursuing revocation of Sanborn’s gaming facility license and his game operator employer license. Sanborn has a limited window of 10 days to appeal the decision. The Attorney General’s Office is simultaneously conducting a criminal investigation into the matter, while also referring the case to the US Attorney’s Office for further criminal proceedings.

Sanborn Faces Legal Hurdles in Bid to Expand Casino Ventures

The allegations come at a pivotal moment for Sanborn, who sought to expand his gambling enterprise with a new casino project on Loudon Road. However, this endeavor now faces legal challenges, with critics asserting that public notice was insufficient before the city’s planning board’s vote.

Aside from the Concord Casino, Sanborn manages The Draft, a restaurant and bar conveniently situated adjacent to his casino in downtown Concord.

In another twist, Sanborn’s wife, Laurie Sanborn, who is a state representative, is heading a legislative commission focused on examining New Hampshire’s gambling laws and their impact on charities’ revenue share. The unfolding events have prompted calls for her removal from the commission due to potential conflicts of interest.

Hailing from Bedford, Sanborn served four consecutive terms in the state Senate before his unsuccessful congressional bid in 2018. Meanwhile, his wife, Laurie Sanborn, currently holds her seventh term in the House, where she assumes the roles of Speaker Pro Tempore and Chair of the Ways and Means Committee. The fallout from these allegations extends beyond the gaming industry, impacting both the Sanborns’ personal reputations and their political connections. As the investigation progresses, the citizens of New Hampshire await further developments and the potential ramifications for the state’s gambling landscape.

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