Macau Legend to challenge Cape Verde decision to end casino contract

The company said it intends to contest the allegations of contract breaches and project delays.

Cape Verde.- Macau Legend Development (MLD) has announced plans to challenge the Cape Verde government’s decision to terminate its casino development contract with the company. The government blamed “contractual violations” by MLD on the long-delayed development of a US$264.7m integrated resort (IR) with a casino in the capital Praia.

MLD has issued a statement to the Hong Kong Stock Exchange asserting its intent to “vigorously contest these allegations to safeguard the interests of the company and its shareholders.”

The agreement was signed in 2015 by Macau businessman David Chow and groundbreaking took place in February 2016 on a 160,000-square-metre site. 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.  

The government said it had given MLD multiple opportunities to restart construction, sell its shares, or transfer its contract to an interested party. However, the company reportedly failed to present viable solutions. MLD was also accused of breaching gaming regulations by transferring more than 20 per cent of its share capital without prior approval.

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).

See also: Macau Legend completes sale of Savan Legend resort in Laos