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'Casino Royale' under arrest

A dispute over pay for the crew leads to the seizure of the ship by federal marshals.

By STEVE HUETTEL
Published October 28, 2006

ADVERTISEMENT [Times photo: Skip O'Rourke] The gambling ship Casino Royale shown docked at Tampa Bay Shipbuilding at the port.

Federal marshals seized the Casino Royale on Friday, throwing another wrench into plans to operate the 400-foot gambling ship off Pinellas County.

Crew members saying they were owed more than $223,000 in unpaid wages obtained a U.S. magistrate's order this week to bring the vessel under control of the federal court.

Their attorney said he had marshals "arrest" the ship Friday at a Tampa shipyard after failing to reach a settlement with ship operator Ocean's 21 LLC.

Crew members and other creditors heard the Casino Royale was about to leave the shipyard and anchor in the gulf, out of the court's reach, said Michael Black, the crew's attorney.

"My concern was they would try to get it out over the weekend," he said.

Ocean's 21 expects to get the ship back next week after posting a bond to cover disputed wages and other expenses, said John Padgett, a Norfolk, Va., lawyer representing the company.

"It should be just a minor inconvenience," he said.

If it sets sail, Casino Royale would be the Tampa Bay area's third and largest casino boat, with more than 500 slot machines, 45 gaming tables, a poker room and sports wagering lounge, according to the ship's Web site.

Casino boats must operate at least nine miles off Florida's west coast, outside state waters. Plans call for Casino Royale to stay in the gulf, with passengers riding shuttle vessels back and forth from Treasure Island.

But financial difficulties and paperwork problems have thrown the plans off schedule.

Days from the ship's expected August launch, the U.S. Coast Guard discovered the previous owners didn't file proper evacuation and fire-prevention plans needed to certify the ship to carry passengers.

Nearly all the ship's 225 employees were placed on unpaid leave and remain out of work. The company expects to begin sailing in a month after receiving Coast Guard approval, said Nigel White, the president of Ocean's 21.

In August, he acknowledged the company had cash-flow problems. Employees said they were paid late in the weeks leading up to the layoffs.

Shipping agent Savage Shipping obtained a court order in July to seize the vessel to collect $158,000 in overdue bills to the ship's management company, hired by Ocean's 21. They reached a settlement before Savage went to U.S. marshals to arrest the ship.

Thirty-two crew members sued in September to seize the ship for back wages. Ocean's 21 and the management company agreed to pay nearly $231,000 that month and $44,000 more by Oct. 22.

They made the last payment late this week, said Black. But the two sides couldn't agree on an amount for unpaid September wages, attorney fees and other debts totaling about $260,000, he said.

Ocean's 21 intends to go to court to resolve the dispute over how much crew members are owed, Padgett said.

Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384.

[Last modified October 27, 2006, 23:45:32]