Scientific Game

Donaco granted second injunction after Star Vegas land owner threatens lease termination

Tuesday, 12 June 2018 16:21
Share
Visit us

Donaco International Limited has been granted a new injunction against the three vendors of its Star Vegas business in Poipet – who also own the land upon which the casino resort sits – after they threatened to terminate Donaco’s 50-year lease.

In an update on the company’s ongoing legal battle, Donaco revealed that the vendors, named as Lee Bug Leng, Lee Bug Huy and Lee Bug Tong, had “threatened to terminate the lease on contrived and spurious grounds” despite their company, Lee Hoe Property Co. Ltd, having previously signed a 50-year lease with Donaco for Star Vegas to occupy the land parcel.

“Accordingly, Donaco has now obtained an injunction in its favor from the Banteay Meanchey Court of First Instance to prevent the threatened termination,” Donaco said.

“This complements the previous injunction granted in Donaco’s favor to prevent the vendors from engaging in illegal competition in the Poipet area, in breach of the sale agreements for the Star Vegas. The vendors have indicated that they intend to appeal against that previous injunction, but the appeal process has not commenced yet.”

Donaco also revealed that it has increased the size of a damages claim against the vendors via arbitration proceedings in Singapore from US$120 million to US$190 million upon expert legal and financial advice. Those proceedings relate to the vendors continuing to run gaming operations in defiance of non-compete provisions at Star Paradise, which is located adjacent to Star Vegas in Poipet.

The trio had previously been granted permission to host gaming facilities under the management of Donaco in a deal that saw the latter paid a monthly management fee of THB5 million (US$151,000), but that agreement expired in 2017 with no new management arrangements put in place.

Donaco was also granted an injunction in April by the Supreme Court of New South Wales to freeze shares in the company held by the vendors, equal to 17.9% in the company’s issued share capital.

What's new

Sands China supporting Old District revitalization

Sands China supporting Old District revitalization Sands China Ltd has thrown its support behind the Old District Revitalization Series – Rua de Cinco de Outubro, which aims to help rebuild parts of Macau in the wake of last year’s devastating Typhoon Hato. Organised by the Macao Association for Promoting Community Economic Development, the in... Monday, 20 August 2018 07:02

Construction on Landing’s Manila IR underway despite Duterte opposition

Construction on Landing’s Manila IR underway despite Duterte opposition Landing International Development Ltd has reportedly begun construction work on its proposed US$1.5 billion integrated resort in Manila, defying President Rodrigo Duterte’s claim that no new Philippines casinos would be allowed under his watch. According to the Philippine Star, earthmoving on the... Monday, 20 August 2018 06:55

Suncity Group 1H18 losses set to increase significantly

Suncity Group 1H18 losses set to increase significantly Macau junket operator Suncity Group Holdings Limited has issued a negative profit warning for the six months ended 30 June 2018, stating it expects to record a significant increase in its loss attributable to owners of the company when compared to 2017 numbers. In a filing to the Hong Kong Stock Ex... Monday, 20 August 2018 06:27

Craig Billings joins Wynn Macau board

Craig Billings joins Wynn Macau board Wynn Resorts CFO and Treasurer Craig Billings has been appointed as a new non-executive director of Wynn Macau. Billings, who joined the company in April 2017, replaces Kim Sinatra on the board after the former Wynn Resorts Executive VP, General Counsel and Secretary stepped down in July. The 45-ye... Monday, 20 August 2018 06:02

Current Issue

OZ VIP: A new dawn

OZ VIP: A new dawn It has taken just 12 months for Australia’s VIP turnover to rebound following the arrests of 19 Crown Resorts employees in China in October 2016, but the balance of power between Australian operators has shifted dramatically in the process. By Ben Blaschke   Just 12 months after the release of... Sunday, 29 July 2018 22:32

Waiting for Garapan

Waiting for Garapan Imperial Pacific says it will miss another deadline for completing its Saipan casino hotel, and there’s no consensus on a completion date. Meanwhile, VIP roll and trade receivable numbers soar. By Muhammad Cohen   Imperial Pacific International continues to excel at manythings. Its monopoly ca... Sunday, 29 July 2018 22:27

License to thrill: How casino re-tendering will shape Macau’s future

License to thrill: How casino re-tendering will shape Macau’s future Professor Glenn McCartney takes a look at the impending Macau casino re-tendering process and why the government’s criteria for issuing licenses will shape the city’s tourism future. By Professor Glenn McCartney   Macau’s casino concession and sub-concession contracts will all end in a few... Sunday, 29 July 2018 22:21

Making live online gaming a reality

Making live online gaming a reality Latency has long been the ultimate challenge for online gaming operators in their quest to provide a quality product, but a new open framework technology could prove to be a game-changer. By Jaheer Abbas | Senior Director, SEA & India at Limelight Networks   It’s hard to imagine that onlin... Sunday, 29 July 2018 22:09