Casino sues former exec over clause in contract
A company that operates casinos in Pennsylvania and West Virginia claims in a federal lawsuit filed on Friday that former executive Edson "Ted" Arneault has violated his noncompete clause and illegally persuaded a former Erie consultant to breach his contract with the company.
MTR Gaming Group of Chester, W.Va., says Arneault violated a $1.6 million settlement agreement in September 2010 by becoming a shareholder and principal member of American Harness Tracks LLC, which is developing a racetrack and casino in Lawrence County.
MTR also claims Arneault violated the settlement by suing the company in April. Arneault's federal lawsuit claims MTR, state gambling regulators and an Erie businessman conspired to publish false and malicious allegations against Arneault in an effort to hinder renewal of his gaming license and keep him out of the gambling industry.
Gregory Rubino is an Erie real estate agent who helped develop MTR's Presque Isle Downs casino and racetrack in Erie. MTR claims Arneault revealed the terms of his settlement and other company secrets to get Rubino to breach his settlement with the company by joining Arneault in the lawsuit.
MTR also operates the Mountaineer casino and racetrack in Chester, W.Va.
Arneault, of New Smyrna Beach, Fla., and his lawyer, John Mizner, could not be reached for comment.