Sands faces Macau trial over breach of contract for license, former partner seeks $12B damages
The trial is set to begin on June 16, with businessman Marshall Hao claiming around 70% of Sands’ Macau profits from 2004 to 2022.
Las Vegas Sands is facing a lawsuit from a former partner in Macau court, Asian American Entertainment Corporation, headed by Taiwanese businessman Marshall Hao, who is seeking compensations of around 70% of Sands’ Macau profits from 2004 to 2022 over an alleged breach of contract for casino license.
According to calculations, the figure would amount to around $12 billion. The trial will begin June 16, and it alleges that Sands breached its contract with Asian American for a casino license in Macau.
The lawsuit comes amid gambling revenues hurt by travel and health restrictions, and a few months ahead of the expiration of Sands’ casino license in Macau. The operator needs to renew bidding for license via a public tender in 2022.
Sands has been battling the claims from Asian American since 2007 when the case was first launched in the United States. It was lodged in Macau in 2012 after the U.S. case was dismissed for statute of limitations and procedural reasons.
The case dates to 2001, when the two companies jointly submitted a bid for gaming concession. During the process, Sands switched partners, teaming up instead with Galaxy Entertainment. The Sands-Galaxy combination went on to win a license over a decade ago.
Marshall Hao said that Sands terminated its joint venture and then submitted a near identical replica of its previous submission with new partner Galaxy.
“Asian American has been winning all major legal battles in the Macau lawsuit since we filed it in 2012…we are confident.” said Hao.
Editing by Rachel Hu