Macau Legend accuses Cape Verde of “offensive act” over casino contract cancellation

Macau Legend has pledged to take legal action against the cancellation of the contract

Cape Verde.- Macau Legend Development (MLD) has issued a statement accusing the government of Cape Verde of committing an “offensive act” by terminating its casino development contract without prior notice. Published in newspaper Expresso das Ilhas, The statement claims that the contract was terminated without due process.

MLF said it will “immediately use the legal means at its disposal to defend its rights and trusts that, until the reasons relating to these contracts are resolved, the State of Cape Verde will not carry out any further acts that offend its rights, as an investor.”

MLD said it had kept the government informed of discussions with potential investors regarding the project. The company expressed dissatisfaction at the government’s decision to terminate all agreements and revert assets via email one day after the publication of the announcement in the Official Gazette. The casino operator said it had fulfilled its financial obligations to the municipal council and government authorities and that the most recent payment for the renewal of gaming licences was made on November 18, the same day as the announcement in the Official Gazette.

According to the news agency Lusa, the government stated: “The State of Cape Verde gave MLD companies every opportunity to resume construction works, negotiate the sale of shares, or transfer their contractual position to a potential interested party to continue the project.”

The government has claimed that MLD transferred more than 20 per cent of its share capital without prior approval, breaching rules for operations in Cape Verde.

Groundbreaking on the project took place in February 2016. The Santa Maria islet has been partially excavated, and a short asphalted bridge has been built linking it to an eight-storey building that remains vacant and barricaded.  

For the first half of the year, MLD posted a net loss of HK$152.47m (US$19.55m), down from HK$182.5m (US$23.3m) in the first half of 2023. Revenue was up 16.54 per cent at HK$390.4m (US$50m). Gaming revenue was up 43.7 per cent year-on-year to HK$208.51m (US$26.74m).