Court Hears LVS Plea against $12 Billion Claim for Breach of Contract

Court Hears LVS Plea against $12 Billion Claim for Breach of Contract

A Taiwanese businessman, Marshall Ho has filed a lawsuit against LVS for breach of contract. The amount claimed as compensation for breach of contract is $ 12 billion. This has been challenged by LVS stating that the amount claimed is overblown. The news was reported by Sun MinQi, CFO of Sands China.

Case by Taiwanese businessman is not new

The case brought by a Taiwanese businessman, Marshall Ho against LVS is regarding the partnership of the Asian American Entertainment Corp Ltd (AAEC) with the casino giant in the United States when the casino giant wanted to enter the market in Macau about 20 years ago. AAEC and LVS submitted a bid for a gaming license in Macau jointly. The bid was made in response to the liberalization policy of the Chinese Government in the previously monopolistic market of Macau.

Reason for the lawsuit

In spite of a partnership with AAEC, LVS later partnered with the Galaxy Entertainment Group. This is the partnership that secured the gaming license in the special administrative territory of Macau. In the decade that followed, Sands China, the Macau arm of LVS helped turn the operator into the richest operator in the special administrative territory. According to the Taiwanese company, this is a breach of contract.

How has the amount of $ 12 billion come about to be claimed?

According to the Taiwanese company, the American operator is in breach of contract for bidding with another operator to secure the gaming license to operate in the special administrative territory. Lost earnings to the extent of 70% of Sand China’s profits in the gambling hub amount to $ 12 billion that is being claimed today. The American operator not only disputes the amount but also the obligation to pay any damages or compensation at all. It claims that the amount claimed is based on a misunderstanding of the financial statements of the company that is required to be submitted annually to the casino regulator in the region. Depreciation, amortization costs, capital expenditures are not considered.

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About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.