Melco Resorts & Entertainment Limited has won a debt recovery case in a Taiwan court in which a former customer was ordered to repay almost HK$320.5 million (US$41.2 million) plus interest.
The Taiwanese man, surnamed Koo, had applied for a HK$100 million (US$12.9 million) credit line from one of Melco’s Macau casinos in 2019, which was later increased to HK$300 million (US$38.6 million). The man subsequently withdrew the credit facility in the form of chips on 17 May 2020 and used it for gambling.
However, he did not repay the credit facility to Melco afterwards. Pursuant to the HK$300 million loan agreement between the two parties, Koo was required to pay interest on the overdue amount of the loan at three times the prevailing legal rate of 9.75% in the Macau SAR.
After calculation, from 14 days after the settlement of the loan on 18 November 2020 to 9 April 2021, the amount of debt owed by Koo, together with the interest, was HK$320,468,986.
Melco subsequently filed a lawsuit in Taiwan demanding repayment of the debt from Koo.
Koo’s lawyer argued that since Melco had delivered non-transferable chips to him rather than cash, it did not fulfil the legal act of borrowing money as an object. Moreover, although the video footage provided by the casino proved that Koo had gambled at the casino, it was not possible to identify the exact time and place, nor was it possible to prove that he had borrowed money from Melco.
After examining the loan agreement provided by Melco and the testimonies of witnesses, the judge considered that Koo was an adult with sufficient discernment and ability to act, and should be capable of signing a loan agreement. Moreover, the law of Macau SAR permits gambling, it is difficult for Koo to be unaware of gambling behaviour, and he should abide by the local law when borrowing money from the casino.
The judge considered that Koo’s behaviour should be regulated by Macau law and therefore found Melco’s claim reasonable. Koo was ordered to repay the loan, including 29.25% interest.
Melco has previously filed a claim in the Macau Court of First Instance against Koo, and on 26 May 2022 a notice was issued by the court requiring him to pay Melco a sum of over MOP$330 million plus a statutory surcharge within 20 days, however Koo was no longer in Macau at that time.
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