U.S. casino major Las Vegas Sands is facing around $12 billion lawsuit from former partner Asian American Entertainment Corp. in a Macau court for alleged breach of contract, Reuters reported. The trial will start on June 16.

Taiwanese businessman Marshall Hao’s Asian American is seeking damages of around 70% of Sands’ Macau profits from 2004 to 2022. It alleges that Sands breached its contract for a casino license in Macau, which is the only legal gambling destination in China.

As per the lawsuit, Sands and Asian American jointly submitted a bid for a gaming concession in 2001. However, Sands switched partners during the process and teamed up with Hong Kong group Galaxy Entertainment, and won the license in Macau.

Marshall Hao alleged that Sands terminated its joint venture with Asian American, and then submitted with Galaxy a plan which was very similar to previous submission.

Asian American first launched the case against Sands for breach of contract in the United States in 2007. After the U.S. case was dismissed for statute of limitations and procedural reasons, the case was lodged in Macau in 2012.

The move comes as Las Vegas Sands faces sharply lower gambling revenues due to travel and health restrictions amid coronavirus pandemic.

The company’s casino license in Macau is nearing expiration. The operator reportedly needs to re-bid for a license through a public tender in 2022.

For comments and feedback contact: editorial@rttnews.com

Business News

Source link