Las Vegas Sands (LVS) is set to go to trial over its 2002 decision to drop joint venture partner Asian American Entertainment Corporation (AAEC) Limited and link with Galaxy Entertainment Group to win a Macau gaming license.
According to a report in the Macau Daily Times, LVS’ bid to avoid a trial following years of appeals and counter-appeals has failed, with a decision on whether the company breached its contract with AAEC to be determined by Macau’s Court of First Instance.
LVS had partnered with AAEC – run by businessman Marshall Hao – in its bid to be awarded a concession by the Macau government but abandoned the deal mid-process to partner with Galaxy instead. The LVS-Galaxy cooperative ultimately won a license before splitting as well, with Galaxy claiming the concession and LVS offered its sub-concession.
At the heart of the dispute between LVS and AAEC is whether or not their joint venture agreement, which expired in January 2002, had in fact been renewed before the tender application process was later finalized.
Mr Hao told the Macau Daily Times he was seeking compensation to recover the original 70% stake in the company.
“Asian American had over 70% of a joint venture with [LVS], which we invited to bid in Macau. However, [LVS] got a whole gaming sub-concession, while we got nothing,” he said.
“This decision from the Court of Appeal confirms that Asian American will have a trial and will see its claim adjudicated by an independent court for the first time in over 15 years.
“We believe we have the strongest claim ever filed against [LVS] over their gaming sub-concession. It is only fair for Asian American to be compensated.”
A legal source told the Macau Daily Times that LVS “did all they could to avoid a trial, but they lost this battle,” but added, “Losing the battle does not mean that they are losing the war. Not at all. That has not yet even been discussed.”
The case first hit the courts in 2007 when AAEC filed a lawsuit with the US District Court in Nevada. After that was dismissed in part due to a three-year statute of limitations, AAEC filed its suit in Macau in January 2012. LVS responded with an anti-suit injunction in the District Court of Nevada which was also rejected.
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