• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 27 July 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

First Pansy now Lawrence?

Newsdesk by Newsdesk
Thu 13 May 2010 at 00:00
3
SHARES
80
VIEWS
Print Friendly, PDF & Email

Could US regulatory heat switch from Pansy Ho and her well-documented difficulties with New Jersey to her half brother Lawrence?

The reason for the question is that a unit of Elixir Group, a wholly owned subsidiary of Mr Ho’s company Melco International Development Ltd, is being pursued in a US federal court by several American hedge funds alleging fraudulent misstatement of the profit potential of a business involving the lease of slot machines to Asian slot clubs and casinos.

For the chairman of a Hong Kong-listed company (in this case Melco International) to be accused or even found liable for fraud in a US federal court is one thing. That’s relatively small potatoes. But for the co-chairman of a joint venture casino gaming company (Melco Crown Entertainment) listed on the Nasdaq in New York to be found liable for fraud in connection with a gaming-related business would potentially be a completely different matter. Mr Ho’s name is also on the Macau gaming sub licence used to operate MPEL’s properties, City of Dreams, Altira Macau and the Mocha slot clubs.

Elixir Gaming Technologies Inc (EGT), Melco International and its chairman and chief executive Lawrence Ho and 14 other directors and employees of EGT are named as defendants in the US case. In a statement to the New York Stock Exchange on 13th January this year, Melco said it owned a 39.84 percent stake in EGT.

The complainants—Prime Mover Capital Partners and three Delaware-based hedge funds—allege the defendants “made false and misleading statements about its gaming participation business in filings with the SEC, press releases, and other industry and investor conferences and meetings during the period from 13th June, 2007 and 13th August 2008”. The plaintiffs say they purchased shares in EGT at a price inflated as a result of the alleged false statements and later suffered economic losses when the price of the company’s securities decreased.

The plaintiffs seek unspecified damages—for alleged violation of the US Securities Exchange Act and of Nevada securities law. The latter part of the complaint relates to Elixir Group’s acquisition in January 2007 of a stake in Las Vegas-based VendingData Corporation. The plaintiffs also seek interest, costs and attorneys’ fees. The company denies any wrongdoing and says it will contest the allegations “vigorously”.

Although it’s unlikely any finding of fraud against EGT, Mr Ho or Melco International in the US would lead to sanctions from Macau’s casino regulator, the Gaming Inspection and Coordination Bureau (DICJ), it could create difficulties with two other important bodies. The first is the US Securities and Exchange Commission because MPEL is a Nasdaq-listed company. The second is the Nevada Gaming Control Board and by extension the Nevada Gaming Commission.

Nevada has a potential interest in the matter and potential leverage over the Elixir court case for three reasons.

The first reason is the complaint against EGT has been made under Nevada securities laws as well as US Federal law. The second is that the other MPEL joint venture partner, Australia’s Crown Ltd, has an investment in Cannery Casino Resorts LLC, which operates four casinos in Nevada. Crown also has minority interests in three other operators with Nevada operations or projects—Harrah’s, Station Casinos and Fontainebleau Resorts.

In Mr Ho’s favour in regard to the Nevada regulatory issue is the fact that MPEL’s sub-licence for casino gaming in Macau was purchased for US$900 million from Steve Wynn. For Nevada to question MPEL’s probity would be potentially to drag Steve Wynn, one of Las Vegas’s key operators, into the debate.

Nevada has been supportive of another big Las Vegas operator—MGM MIRAGE—regarding that company’s joint venture with Pansy Ho in Macau. That’s despite the New Jersey Division of Gaming Enforcement’s finding that Ms Ho was an “unsuitable” partner because of her father’s alleged connections to Chinese organised crime. In February, MGM MIRAGE announced its intention to sell its 50 percent stake in the Borgata Hotel Casino & Spa in Atlantic City and to pull out of the New Jersey market, rather than contest the “unsuitability” claim with the New Jersey Casino Control Commission.

A potential wild card in any regulatory action against MPEL that might stem from the Elixir case is that Crown’s partners, Harrah’s and Station Casinos, have operations outside Nevada. As we have seen recently in the decision of Illinois to review MGM MIRAGE’s licence there in light of New Jersey’s hostile findings, regulatory panic can spread like a bush fire, potentially consuming properties some distance from the seat of the original ‘blaze’.

RelatedPosts

MGTO says no apparent impact on visitor numbers from limitation on provision of free snacks in Macau casinos

Macau visitor arrivals rise 13.3% year-on-year to 2,891,003 in June

Fri 25 Jul 2025 at 05:45
IAG to launch weekly “The IAG Live Streaming Show” starting this Friday 25 July

IAG to launch weekly “The IAG Live Streaming Show” starting this Friday 25 July

Thu 24 Jul 2025 at 14:20
A New Macau

Sands China to adopt more aggressive approach to customer reinvestment in Macau due to recent underperformance, targets US$2.7 billion annual EBITDA

Thu 24 Jul 2025 at 06:16
Dr Wilfred Wong

The Londoner Macao shows benefits of multi-billion-dollar revamp as 2Q25 performance pushes Sands China revenues to US$1.79 billion

Thu 24 Jul 2025 at 05:17
Load More
Tags: Macau
Share1Share
Newsdesk

Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

Winds of change

Belle Corp’s share in City of Dreams Manila gaming revenue down 18% in 1H25

by Newsdesk
Sat 26 Jul 2025 at 08:39

Philippines real estate firm Belle Corp saw its share in gaming revenue from City of Dreams Manila fall by 18% year-on-year to Php772.3 million (US$13.5 million) in the first half of 2025, reflecting the challenges currently being faced by Manila’s...

DigiPlus to enter South Africa’s online sports betting market

DigiPlus to enter South Africa’s online sports betting market

by Newsdesk
Sat 26 Jul 2025 at 08:37

Philippines gaming technology firm DigiPlus Interactive Corp has announced plans to further expand internationally by entering the South African online sports betting market. The company said in a Friday statement that it would file license applications with the Western Cape...

Uncertain future for POGO industry suppliers as PAGCOR says operations in “status quo” for now

Maybank: Threat of total ban on Philippines online gaming is real, more clarity from President Marcos likely Monday

by Ben Blaschke
Fri 25 Jul 2025 at 12:34

Malaysian investment bank Maybank has warned that the threat of a total ban on the Philippines’ domestic online gaming, or eGames, sector is real given that political noise is similar to before recent bans on eSabong and POGOs. While Maybank...

MGTO says no apparent impact on visitor numbers from limitation on provision of free snacks in Macau casinos

Macau visitor arrivals rise 13.3% year-on-year to 2,891,003 in June

by Pierce Chan
Fri 25 Jul 2025 at 05:45

According to data from Macau’s Statistics and Census Service (DSEC), a total of 2,891,003 visitors arrived in Macau in June, representing a year-on-year increase of 13.3%. Mainland China remained the primary source of visitors to Macau in June, with 1,995,627...

Your browser does not support the video tag.


IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English