Corporation to Pursue Late Fee

The Nova Scotia Gaming Corp. has received notice that the Metropolitan Entertainment Group, the operator of the Halifax and Sydney casinos, denies the $10,000-per-day late completion fee, relating to the delay in completion of the permanent Halifax casino, is due.

"We're disappointed with the Metropolitan Entertainment Group's decision to challenge the construction contract," said Dara Gordon, vice-chairperson of the gaming corporation. "Payment is clearly required and the fee has been accumulating on our books at $10,000-a-day since Sept. 15.

"We will take all action to enforce our rights. Under the dispute resolution process in the contract, we will be proceeding immediately to mediation, and if we don't collect our fee there, we will proceed to arbitration."

With the opening of the permanent Halifax casino now scheduled for April 24, 2000, the gaming corporation expects the Metropolitan Entertainment Group to pay about $2.2 million in late fees.

"Nova Scotia Gaming Corp.'s position is clear," said Ms. Gordon. "We feel strongly that the fee is due and we intend to collect it."

The Nova Scotia Gaming Corp. is a Crown corporation responsible for the control and management of gaming in the province. Its operations include lotteries, casinos and harness racing.

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