[ISL] "PEI denies breach of contract, conspiracy claims in eGaming lawsuit"

[rfmcdonald]

While Prince Edward Island seems to be doing somewhat better than the other two Maritime provinces, it still faces challenges. This report in The Globe and Mail by Robyn Doolittle and Jane Taber, about the aftermath of a failed effort to launch Prince Edward Island as a site for online gambling, describes one.

PEI has denied it conspired to undermine the economic interests of a U.S.-based technology company that was involved in the province’s ill-fated attempt to become an international online gambling hub.

Capital Markets Technologies filed a $25-million lawsuit last week alleging breach of contract and conspiracy. The lawsuit was filed three days after Premier Wade MacLauchlan launched an election campaign in which the failed eGaming initiative has figured prominently. On Monday, Conservative Leader Rob Lantz called on the province to release all documents related to the venture.

Earlier this year, The Globe and Mail reported on a covert plan to transform Canada’s smallest province into a global eGaming capital. The story revealed lax oversight and weak conflict-of-interest rules that enabled government officials to invest personally in companies that were working on the project.

Only hours after the 55-page claim was filed, the government released its statement of defence denying all the allegations, none of which have been proven in court.

[. . .]

The lawsuit named the province and several current and former government officials, including recently resigned finance minister Wes Sheridan and former premier Robert Ghiz’s one-time chief of staff Chris LeClair.