Wednesday, September 28, 2022

GGRAsia – Wynn Expects US$8mln Litigation Cost in Door Deposit Cases

Wynn expects US$8mln litigation cost in door deposit cases

Wynn expects US$8mln litigation cost in door deposit cases

Macau casino operator Wynn Macau Limited recorded HKD62.0 million (US$7.9 million) as a provision for litigation costs in relation to cash deposits individuals’ claims were placed with Door Entertainment Co. Ltd., a gambling junket owned by casinos. was working with the company. This information was included in Wynn Macau Ltd’s annual report filed with the Hong Kong Stock Exchange on Friday.

A November decision by Macau’s Court of Final Appeal upheld Wynn Macau Ltd as a party liable to return HKD6 million The deposit was filed with Door Entertainment, which had operations at the Wynn Macau property in the city’s downtown district.

In a November 19 decision seen by GGRAsia, the city’s Supreme Court held that the “best interpretation” of the existing law implied that Article 29 of Administrative Regulation 6/2002 “contains the concessionaire’s attitude towards ‘third parties’ for activity”. imposes liability. (by its) gaming promoters.”

In its annual report, Wynn Macau Ltd confirmed that the group – through the entity holding the Macau Gaming rights – was required to pay “approximately HKD9.3 million, including accumulated interest” to the plaintiffs involved in that lawsuit.

The company said: “We believe that the majority of the remaining cases are without merit and unfounded and intend to vigorously defend against the remaining claims made against us in these lawsuits.”

Nevertheless, the casino firm said it has “made estimates of potential litigation costs based on an assessment of the likely outcome” of these lawsuits. It said it has recorded provisions of HKD62.0 million for such amount in its financial statements as of December 31, 2021.

“No assurance can be given as to the outcome of the pending Dor cases and actual results may differ materially from these estimates,” said Wynn Macau Ltd.

A Gaming Laws Amendment Bill – currently being examined in the city’s Legislative Assembly – states joint liability Gaming concessionaires and gaming promoters will have to bear the brunt of the junk-generated VIP business. City legislators also gave first-read node Last week for a consolidated bill that covers licensing and regulatory matters for the city’s junket operators and so-called satellite casinos.

Another Macau casino operator, MGM China Holdings Ltd, said in its latest annual report that it may be liable Up to HKD202.7 million in respect of junk-related deposit lawsuits.

The group said he was named as a defendant in three civil cases related to cash allegedly held with two junkets operating at the MGM Macau resort. MGM China has already lost a case in Macau’s Court of Final Appeal, after its final submission was rejected in February this year.

Macau’s VIP gambling business has seen a decline in business in recent years, with close monitoring by authorities in Macau and mainland China. fast with the trend November custody Alvin Chow Cheok Wa, suspected of promoting cross-border gambling overseas to customers from mainland China, and the cessation of business in his junket brand Suncity Group.

In January this year, VIP Trade saw The arrest of Levo Chan Weng LinoThe owner of the junk brand Tak Chun, suspected of being a triad leader.

A recent note from Credit Suisse (Hong Kong) Limited suggested that Macau casino operators may be collectively responsible For an estimated HKD 50 billion of “unfinished liabilities” and “uncollected debt” left over after the “sudden closure” of the Suncity Group and Tak Chun junket brands.

Nation World News Desk
Nation World News Desk
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