The AmTote totalizator company has filed a federal lawsuit in U.S. District Court in Bowling Green, Ky., that claims Kentucky Downs and Encore Gaming “misappropriated trade secrets” and breached a contract.
As first reported in the Blood-Horse, the defendants in the lawsuit are Kentucky Downs and its president Corey Johnsen, track general manager and senior vice president Nicholas Hughes, Encore Gaming, and Rayford T. Reid, a Kentucky Downs executive and an officer of Encore.
The suit is related to the decision by Kentucky Downs officials to begin using Encore Gaming to manage its totalizator system which includes historical racing. AmTote states in the suit that it entered into an agreement with Kentucky Downs to provide tote equipment and services at the track. The company also claims it provided extensive training to racetrack personnel, which included access to its totalizator system reports.
AmTote states in the lawsuit that: “On information and belief, Encore has invested insufficient time, money, and ingenuity to be able to independently produce a fully operational totalisator system that is capable of properly handling the processing of pari-mutuel wagers for live or historical racing and that meets regulatory requirements.”
“On information and belief, Reid, Johnsen, and Hughes with full knowledge of Kentucky Downs' contractual obligations to AmTote, provided AmTote's confidential and proprietary information to Encore, and misused that information in the development of a totalizator system for Encore,” the suit continues.
AmTote is seeking to be awarded costs and expenses related to “lost investment in the development of its confidential and proprietary information,” compensatory damages in excess of $75,000, punitive/exemplary damages for “willful and malicious conduct,” and attorneys fees.
UDPATE: Encore issued the following statement regarding the lawsuit: “It is unfortunate that AmTote decided to file a lawsuit without obtaining facts or opening a dialogue with Encore. Encore was established in 2012, and working in conjunction with experienced talent from related industries was able to develop a state-of the-art HHR system from the ground up. The allegations in the lawsuit are one-hundered percent false, and Encore will vigorously defend itself in this action.”
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