Global Cash Access Holdings sued by former top executive

The former chief executive officer of Global Cash Access Holdings has started a competitive company and on Monday sued GCA in federal court, alleging antitrust violations.

The lawsuit filed on behalf of Sightline Payments seeks $300 million damages and asks the court to treble those alleged damages against GCA, which operates automated teller machines in major Las Vegas and Atlantic City casinos.

Las Vegas-based GCA provides services including credit card advances, point-of-sale debit card cash advances and check verification to 1,100 casinos worldwide, according to the lawsuit.

"GCA has acquired a monopoly of providing cash access products, casino patron credit reporting, cashless gaming and redemption machines to gaming establishments in at least the markets of Las Vegas ... and the state of Nevada," the lawsuit stated.

"We are very confident in our ability to defend against these claims," GCA Executive Vice President of Business Development Scott Dowty said.

He added that GCA knows that previous GCA managers are with Sightline Payments.

Sightline founder and President Kirk Sanford was chief executive officer of Global Cash Access Holdings prior to July 2007 when his employment ceased. After Sanford left, GCA conducted an internal investigation based on undisclosed allegations made by an unidentified individual but found no fraud or intentional misconduct, according to reports GCA filed with the Securities and Exchange Commission.

Tom Sears and Daran Kludjian, two other former GCA executives, also are executives and founders at Sightline.

Sanford for a time helped managed Xyience, a private Las Vegas company that made energy drinks. Before filing for bankruptcy protection in January 2008, Xyience had been a sponsor of the Ultimate Fighting Championship.

GCA reached a settlement agreement with the Arizona Department of Gaming in November for renewal of its gaming certification. The conditions for the renewal included a requirement that GCA not associate or do business with Sanford, but the lawsuit claims that exclusion of Sanford wasn't a condition required by Arizona and was an "attempt to tarnish Mr. Sanford's reputation and character" and to hinder Sightline's efforts to get licenses needed to compete with GCA.

Richard Archer of Petaluma, Calif., filed the lawsuit.

GCA shares gained 11 cents, or
1.34 percent, Tuesday to close at $8.31 on the New York Stock Exchange.

Contact reporter John G. Edwards at
jedwards@reviewjournal.com or 702-383-0420.