Reel Games, Inc. v. Euro Game Technology, LTD

CourtDistrict Court, S.D. Florida
DecidedJune 2, 2025
Docket0:24-cv-60713
StatusUnknown

This text of Reel Games, Inc. v. Euro Game Technology, LTD (Reel Games, Inc. v. Euro Game Technology, LTD) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reel Games, Inc. v. Euro Game Technology, LTD, (S.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 0:24-cv-60713-LEIBOWITZ

REEL GAMES, INC.,

Plaintiff, v.

EURO GAME TECHNOLOGY, LTD., ,

Defendants. __________________________________________/

ORDER THIS CAUSE comes before the Court on Defendants Euro Game Technology, Ltd. (“EGT”) and EGT Multiplayer, Ltd.’s (“EGT Multiplayer”) (collectively, “Euro Games”) Motion to Dismiss Complaint and Compel Arbitration (“the Motion”) [Mot., ECF No. 38], filed on January 3, 2025. Plaintiff Reel Games, Inc. (“RGI”) has responded to the Motion [Resp., ECF No. 43], and Euro Games has replied [Reply, ECF No. 53]. After a review of the record, the filings, and the parties’ arguments, the Motion to Compel Arbitration is granted.1 BACKGROUND On March 15, 2014, RGI and EGT entered into an agreement (“the Licensing Agreement”) through which RGI would distribute casino slot machines made by EGT in Bulgaria, as well as “multiplayer systems” such as electronic roulette and card games made by EGT Multiplayer in Bulgaria. [Compl., ECF No. 1 ¶¶ 1–2].2 While EGT Multiplayer is not a party to the Licensing

1 Because this Court finds that Euro Games is entitled to an order compelling arbitration, the Court does not analyze Euro Games’ arguments that RGI’s Complaint fails to state claims upon which relief can be granted.

2 While not referenced in the Complaint, the parties entered into an “identical” Licensing Agreement in 2017. [Resp. at 16]. Agreement, it “nonetheless did business with [RGI] as if it were.” [Id. ¶ 3]. Thereafter, RGI distributed EGT slot machines and EGT Multiplayer systems to casinos in the United States. [Id. ¶ 6]. RGI claims that because revenues from the Licensing Agreement were limited, EGT (1) “unilaterally changed the territory covered by the Licensing Agreement[,]” (2) approved RGI’s business practices, but failed to reflect these business practices in the terms of the Licensing Agreement, or in open accounts and accounts stated rendered under the Licensing Agreement, and

(3) EGT and EGT Multiplayer “consistently rendered false open accounts and false accounts stated.” [Id. ¶¶ 9–11].3 After various problems with the performance under the Licensing Agreement, RGI entered into two Debt Settlement Agreements (“the Debt Settlement Agreements”), one with EGT and one with EGT Multiplayer, with the goal of “conditionally settl[ing] disputed open account statements and disputed accounts stated.” [Id. ¶¶ 73–75]. However, neither of these agreements were ever performed. [Id.]. Relevant here, the Licensing Agreement includes the following arbitration clause: 15. GOVERNING LAW AND JURISDICTION

All disputes shall be finally settled under the Rules of International Commercial Arbitration Act by Arbitrators appointed in accordance with the said Rules. Place of Arbitration is Sofia, Bulgaria or other independent arbitrators in Germany or France. The language of the Arbitration shall be conducted in English. All relations arising out of these Conditions shall be governed by and construed in accordance with the laws of Bulgaria, specifically excluding international private law or conflict of law rules. The prevailing party in any legal action shall be entitled to reasonable costs and fees in connection with the Arbitration procedure, including reasonable attorneys’ fees. The U.N. Convention on the Sale of Goods shall not be applicable.

3 RGI alleges that Euro Games engaged in various other activities which form the basis for its breach of contract claim, but those facts are not relevant to the disposition of the instant motion. [See generally Compl.]. [Compl., Ex. A at 44]. Meanwhile, the Debt Settlement Agreements include the following arbitration clauses: Article 10.4 This Agreement shall be governed by the laws of the Republic of Bulgaria.

Article 11. All disputes, arising from this Agreement, the Sales Agreement or other arrangements between the Parties, or related to it or to their infringement, including those arising from or concerning its interpretation, invalidity, performance or termination, as well as the disputes for filing gaps in this contract or its adaptation to newly established facts, shall be referred for resolution to the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry in compliance with its Rules for Litigations, based on arbitration agreements.

[Compl., Ex. B at 57–58; Ex. C at 70]. Based on these clauses, Euro Games initiated an arbitration proceeding in Bulgaria (“the Bulgarian Arbitration”) on September 11, 2024.5 [Mot. at 1; Resp. at 7]. RGI now brings four causes of action: (1) Breach of Contract against EGT and EGT Multiplayer, (2) Account Stated against EGT and EGT Multiplayer, (3) Open Account against EGT and EGT Multiplayer, and (4) Federal Declaratory Relief against all Defendants.6 [Compl. ¶¶ 82–105]. LEGAL STANDARD Personal Jurisdiction: A court must engage in a two-part test when considering a motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure. See Kelly v. Kelly, 911 F. Supp. 518, 520 (M.D. Fla. 1995). First, a court must determine whether it has personal jurisdiction pursuant to Florida’s Long-Arm Statute, Fla Stat. § 48.193, and second, a court must consider whether there are sufficient minimum contacts to satisfy the Due Process Clause of the

4 In the second Debt Settlement Agreement, these sections are in Articles 9 and 10, not 10 and 11.

5 RGI states that “[t]he ‘9/11’ anniversary date may or may not be intentional.” [Resp. at 7]. Whatever inference RGI is reaching towards here is baseless.

6 In addition to EGT and EGT Multiplayer, RGI sued “Euro Game Technology, LTD,” a Bulgarian corporation, “Euro Games Technology, Ltd.” a Defendant with a business address in Panama City, Panama, and “John Does 1–10,” who allegedly committed the various breaches in concert with the named Defendants. RGI has not filed proof of service on any of these Defendants. Fourteenth Amendment so that the maintenance of a suit does not violate traditional notions of fair play and substantial justice. Kelly, 911 F. Supp. at 520 (citing Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)). “Where the court does not conduct an evidentiary hearing to determine the sufficiency of Defendants' contacts with the forum state, Plaintiff must establish a prima facie case of personal jurisdiction over non-resident Defendants.” Kelly, 911 F. Supp. at 520–21; see N. Am. Sugar Indus., Inc. v. Xinjiang Goldwind Sci. & Tech. Co., 124 F.4th 1322, 1333 (11th Cir. 2025).; Meier ex rel. Meier v. Sun

Int’l Hotels, Ltd., 288 F.3d 1264, 1268–69 (11th Cir. 2002). The court shall review the pleadings and accept the facts asserted in the plaintiff’s complaint as true unless controverted by the defendant’s affidavits or evidence of the contrary. See Meier, 288 F.3d at 1269. If the defendant submits affidavits contesting the plaintiff’s allegations, the plaintiff must support its claims with competent evidence. Id. When conflicting affidavits are presented, the court must resolve all factual disputes in favor of the plaintiff. Id. Compelling Arbitration: Under the Federal Arbitration Act (“FAA”), “[a] written provision in any . . . contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction . . . shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract[.]” 9 U.S.C.

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Reel Games, Inc. v. Euro Game Technology, LTD, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reel-games-inc-v-euro-game-technology-ltd-flsd-2025.