Macau court allows lawsuit against Sands to proceed
A Macau court has denied Las Vegas Sands Corp.’s motion to dismiss a claim by a Taiwanese businessman who says he helped the company get a gaming license in Macau.
The GGRAsia gaming industry website reported that in a March 16 court filing, Macau’s Court of First Instance said Asian American Entertainment Corp., led by Taiwanese entrepreneur Marshall Hai Shi-sheng, could proceed with a lawsuit. A court date has yet to be set.
“The company has consistently maintained that this case has no merit,” Las Vegas Sands spokesman Ron Reese said Tuesday. “We have confidence that ultimately the Macau judicial process will reach the same conclusion.”
Macau is key to the company’s operation, accounting for about 58 percent of the company’s $11.69 billion revenue in 2015. Sands operates four properties in Macau and will add a fifth later this year through a sub-concession it obtained in 2002.
The GGRAsia website reported that in January 2012, Asian American Entertainment filed a lawsuit in Macau against Sands and some related entities. Sands is the parent company of the Macau-based casino operator Sands China Ltd.
The lawsuit claims Las Vegas Sands and Hai agreed in late 2001 to put forward a joint bid for Macau gaming rights with financial support from Taipei-based China Development Industrial Bank. The company now says Sands did not pay them for their effort. The claim is for 3 billion Macanese patacas — $375.6 million in U.S. dollars — according to Sands’ 2015 annual report issued in February.
Asian American Entertainment had filed a similar suit against Sands in U.S. District Court in Las Vegas but withdrew it in 2014 after reviewing the case evidence. The Nevada lawsuit asked for $5 billion from Sands with pre- and post-judgment interest.
The Review-Journal is owned by the family of Las Vegas Sands Chairman and CEO Sheldon Adelson.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta
