Casino Can't Collect Multi-Million Dollar Debt, Court Rules
The practice of offering markers, or house credit, to high rolling casino gamblers has caused a few stirs in Las Vegas this year, and now is central in a landmark decision in the United Kingdom. Fouad al-Zayat, a Cyprus billionaire known as the Fat Man, was triumphant in a court case against Aspinall's, a London casino, in a dispute over a six-year-old debt.
Al-Zayat had established himself as a regular at Aspinall's, losing millions on a steady basis since 1994. In March 2000 he began a bad run at blackjack during which he lost over $3.5 million in one night. He had asked for a dealer change, but was told there was no other dealer available.
The Fat Man learned another dealer had been on duty, and in his anger he cancelled the check for that night's losses. When Aspinall's attempted to cash the check, it was returned from the bank.
However, the casino did not want to offend such a lucrative source of income, and held the check for another six years while allowing al-Zayat to continue to play, over which time he dropped almost $20 million. Finally, after being rebuffed repeatedly on attempts to quietly collect against the bad check, the club sued.
A court initially found in favor of the casino, and assets of al-Zayat were frozen against the debt. But, upon appeal, the decision was reversed. The United Kingdom's Gaming Act does not allow for the extension of credit, and not seeking to immediately force the issue of the check was ruled tantamount to allowing credit.
Al-Zayat, who had countersued to recollect all his losses at Aspinall's, still was ordered to pay his own legal expenses, and did not receive any refund for other losses. Still, the judge felt obligated to say, "This is one of those cases which have everything to do with law and nothing to do with justice."
Wynn Las Vegas has had similar disputes this year, first with NBA star Charles Barkley, and then "Girls Gone Wild" producer Joe Francis. Barkley settled quickly and amicably; Francis has countersued, arguing that Steve Wynn enticed him with liquor and prostitutes into gambling beyond his means.
