Competition in the gambling world is intense, with numerous businesses vying for the same market. Hence, it’s not surprising that most prominent gambling operators include provisions that prevent competition in the contracts they have with their senior executives. These provisions, known as non-compete clauses, prohibit an employee from working with a rival firm. The specified duration for these restrictions can vary, though it is often set at one year. Once such a clause is agreed to by an employee of a casino operator, any violation can potentially result in legal action.
An incident revolving around this issue occurred a few years ago when Wynn Resorts initiated legal proceedings against Fontainebleau Las Vegas. This move was triggered by the exit of one of its workers who decided to join the competition. In the heart of the dispute was David Snyder, an executive renowned for his significant contribution to Wynn Resorts’ global expansion. However, in June 2022, Snyder revealed his intentions to quit Wynn and link up with Fontainebleau in the following month.
Upon this switch, Wynn proceeded to take legal action, accusing Fontainebleau of engaging Snyder, who was key to launching its new facility on the Las Vegas Strip. Eventually, the dispute was resolved amicably, with Fontainebleau promising not to poach any more staff from Wynn Resorts.
Remarkably, despite reaching an agreement, Wynn slapped Fontainebleau with a new lawsuit for allegedly persisting in their employee poaching habits. The legal suit was lodged with the Clark County District Court recently. Wynn accuses Fontainebleau of enticing its top-notch staff to resign. In its legal action, Wynn detailed several instances in which it alleges that Fontainebleau has interacted with its employees.
Fontainebleau Alleged to Have Attempted to Headhunt Wynn Staff
The legal case cites Fontainebleau Development LLC, Fontainebleau Las Vegas II LLC, and Bowtie Development LLC, operating under the name Fontainebleau Las Vegas, as respondents, as unravelled by a Las Vegas Review-Journal expose. In addition to the defendants mentioned, the court case further includes ten unnamed parties also listed in connection with Fontainebleau Las Vegas.
Stated in the freshly lodged lawsuit, “While we desire all operators in Las Vegas to prosper; we view it as essential to our city. We merely wish this prosperity not to hinder the contractual obligations our workers have committed to us.”
What’s more, Wynn alleges that Fontainebleau is found to “embarrassingly fail to refrain from meddling with WLV’s contractual employment agreements”, emphasising signs of Fontainebleau’s “unhealthy fixation with all things Wynn, from its facilities to its staff members.” In the detailed legal claim, Wynn accuses Fontainebleau’s officials of visiting Wynn Resort son the pretext of discussions with the company’s upper executives. These and other cases are encapsulated in Wynn’s extensive 10-page lawsuit.
