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The thorny situation between the Oregon Lottery and Dan Fischer, one of the largest lottery retailers, grew even more complex on June 19, when one of Fischer's companies sued the lottery to stop the agency from cutting off its access to the state's gambling machines.
The lawsuit is part of a long-running battle over the concentration of lottery retailers on Hayden Island, which is well-placed to attract gamblers from Washington state just across the Interstate Bridge. Since 2012, the issue of lottery-retailer concentration on the island has regularly been on the Lottery Commission's agenda, including at its meeting in March.
But it's the law firm representing Fischer, Miller Nash Graham & Dunn, that adds an element of political intrigue to the case.
Miller Nash has long represented Fischer and his best known company, Oregon Restaurant Services, Inc., also known as Dotty's Deli's, Oregon's largest lottery retailer. Miller Nash also represents an affiliated company, (503) Holdings I, LLC, which operates Paddy's Old Irish Cafe #28 on Hayden Island.
Here's the wrinkle: The five-member Oregon Lottery Commission is chaired by Elisa Dozono, who happens to be a partner at Miller Nash.
That means Miller Nash is suing the Oregon Lottery based on policy actions for which one of its own partners—Dozono—is ultimately accountable.
For the past couple of years, an association of Hayden Island neighbors called HINooN, has complained that Dozono's role represents a conflict of interest: that since her paycheck comes from Miller Nash, she cannot represent the public's interest when it comes to the issue of lottery concentration at Hayden Island.
In 2014, the Oregon Government Ethics Commission said Dozono's dual role was not a problem.
Dozono's position is that she is not an equity partner at Miller Nash and effectively receives a salary from the firm rather than a share of payments from clients, such as Fischer and his companies.
That argument hasn't satisfied the Hayden Island group. But Fischer's lawsuit may be evidence that whatever potential conflict may exist, Dozono and the Lottery Commission are doing anything but going easy on Fischer.
Here's the crux of Fischer's argument:
The lawsuit concerns Paddy's Hayden Island location, not the three other Paddy's Fischer operates. The lottery has moved to cancel its contract with that location, which brings in $500,000 in commissions a year from the state's video machines.
Dozono declined to comment. Miller Nash representatives were not immediately available for comment.
The Oregon Department of Justice, which will represent the Oregon Lottery in the case, does not comment on pending litigation.
WWeek 2015