Las Vegas gaming suppliers fight with each other in court

Shuffle Master Inc. claims a former employee committed fraud when he quit the company to go work for a competitor four days after Shuffle Master had spent $21,900 to move him to Las Vegas from Michigan.

Shuffle Master filed suit in District Court against David Lutz, a former production supervisor who is now head of service at competitor Casinovations Inc. Also sued were Casinovations officers and former Shuffle Master employees William O'Hara Jr. and D. Dean Barnett, as well as Casinovations itself.

Lutz referred questions to Steven Blad, chief executive and president of Casinovations. Blad called the charges "without merit or substance."

The suit said Lutz worked for Shuffle Master from 1993 until last September. The company moved Lutz to Las Vegas from Michigan on Sept. 14. On Sept. 18, the suit alleges, Lutz quit the company to join Casinovations.

Shuffle Master wants to be repaid Lutz's moving expenses, and alleges he has not returned confidential company materials.

Blad said Lutz has a signed receipt showing he returned the materials in question.

Shuffle Master also alleges conspiracy to commit fraud and interference with contract against O'Hara and Barnett, who allegedly recruited Lutz, according to the suit. Shuffle Master also accuses O'Hara of breaching an agreement not to recruit Shuffle Master employees until Nov. 4, 1999. O'Hara and Barnett both worked for Shuffle Master until 1997.

Blad said no Casinovations employees recruited Lutz. Lutz applied to the company of his own accord, said Bled.

In addition to the allegations related to Lutz's hiring, the suit accuses Casinovations of false advertising for an advertisement that claims a Casinovations card shuffler is in use in 20 casinos. The suit also alleges a Casinovations service called "Shuffle Maid" infringes on its trademarks.

Blad said the advertisement is accurate and actually understates the number of casinos where the Casinovations product is used. The company has applied for a trademark for Shuffle Maid, and will continue using that name, he said.

"Shuffling cards and the term 'shuffle' has been around for years as a part of the game," said Blad.

Shuffle Master wants $21,900 for moving Lutz, additional unspecified costs and damages, and an injunction ordering Lutz to return company materials and to prevent Casinovations from using the Shuffle Maid ad.

Blad said the case has been moved to U.S. District Court in Las Vegas at Casinovation's request. He said the company will move to dismiss it.

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