AAEC demands US$7.5bn from LVS in Macau breach of contract case
AAEC is demanding compensation of at least US$7.5bn to cover lost profits after Las Vegas Sands allegedly breached its contract for a casino licence in Macau.
Macau.- Asian American Entertainment Co Ltd (AAEC) is demanding at least MOP60bm (US$7.5bn) from Las Vegas Sands (LVS) for damages in a case of breach of contract for a casino licence in Macau.
AAEC attorney Jorge Menezes, made the plea said the proposed amount is “based on fairness and discretion”. AAEC had originally sued Las Vegas Sands for over US$12m.
The company initiated the lawsuit in 2012 and argued that Sands breached its contract for a casino licence in Macau in 2002 when the US operator switched partners, teaming up with Hong Kong’s Galaxy Entertainment. The compensation claim is based on two separate reports, including one by consulting firm Ducker Research, which estimated that AAEC lost about MOP 57.9bn between 2002 and 2020.
Another report, written by Macau economist José I. Duarte, put the estimated loss at MOP62bn.
Menezes said that the compensation amount was not included in the latest financial results of LVS’ Macau business for the first half of 2021 to 2022 as LVS’s 20-year gaming licence in Macau is due to expire in June this year.
According to Macau Business, Menezes, highlighted an imbalance between the resources of AAEC and LVS and stated that nine of the 16 witnesses in the case were LVS former employees. The trial will resume on Wednesday, January 26, when defence attorneys will present their closing arguments.
