Local casino operator Macau Legend Development Limited has announced the signing of an agreement that will see junket promoter Sheng Li V Limited run three VIP tables in Ka Sing VIP club, located at Legend Palace, until the end of 2019.
Under the terms of the deal, Sheng Li V Limited will pay Hong Hock Development Company Limited – a wholly owned subsidiary of Macau Legend – a capped annual fee of HK$6,000,000 for use of the tables through to 31 December 2017, HK$22,000,000 for the year ended 31 December 2018 and HK$16,500,000 through 2019.
The cap includes Hong Hock receiving 2% of the gross gaming income from Ka Sing VIP club each month plus a monthly license fee of HK$270,000 per table, while there is a guarantee that Sheng Li V Limited will spend at least 0.05% of the rolling chip volume each month at hotels and businesses associated with Macau Legend.
Sheng Li V Limited will be entitled to 57% of the gross gaming income of Ka Sing VIP club from SJM, which holds the quota for all tables used by Macau Legend. Sheng Li V Limited is wholly owned by Mr Frank Wong, the father-in-law of Macau Legend executive director Mr Sheldon Trainor-DeGirolamo.
Mr Wong also holds a 30% share in Seng Lei Loi Jewelry and Watches Company Limited. As part of Sheng Li V Limited’s agreement with Hong Hock, Seng Lei Loi Jewelry and Watches Company Limited will lease a shop at Legend Palace for the next two years for a total sum of HK$450,000.
In a filing to the Hong Kong Stock Exchange, Macau Legend stated that, “The Directors (including all independent non-executive directors but excluding Mr Trainor-DeGirolamo) consider that the entering into of the Confirmatory Agreement, the Cooperation Agreement and the License to Use Agreement is in the usual and ordinary course of business of the group and the terms … were negotiated on an arm’s length basis and on normal commercial terms between the Group and Mr Wong.”
