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Saturday, 09/17/2016 10:36:38 AM

Saturday, September 17, 2016 10:36:38 AM

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Macau junket operator facing lawsuit following closures
September 16, 2016
Fines, Lawsuits & Litigation, Latest Casino and Gambling News, Macau

In Macau, VIP junket operator Iao Kun Group Holding Company Limited could be facing a lawsuit after recently announcing that it had closed its high-roller operations at the StarWorld Casino And Hotel Resort and the Galaxy Macau Casino.

According to a report from the Macau Business Daily newspaper, casino operator Galaxy Entertainment Group Limited has issued a statement declaring that it intends to take legal action against NASDAQ-listed Iao Kun Group Holding Company Limited for a “breach of its undertakings and agreements”.

Galaxy Entertainment Group Limited operates the Galaxy Macau Casino on the Cotai Strip along with the StarWorld Casino And Hotel Resort near the enclave Fisherman’s Wharf district and also stated that it would like to “put the record straight” regarding the closure of the VIP facilities.

“Galaxy Entertainment Group Limited has terminated the promoter agreements with Iao Kun [Group Holding Company Limited] and closed Iao Kun [Group Holding Company Limited] VIP rooms in the Galaxy Macau Casino and StarWorld Casino And Hotel Resort as a result of Iao Kun [Group Holding Company Limited’s] breach of the agreements made with us,” read a statement from Buddy Lam, Public Relations Assistant Senior Vice-President for Galaxy Entertainment Group Limited.

Iao Kun Group Holding Company Limited additionally shuttered its VIP operations at the Las Vegas Sands Corporation’s Sands Cotai Central venue a little over a week ago after earlier reporting a 50% drop year-on-year in company-wide rolling chip volumes for the first eight months of 2016 to $2.41 billion. GGRAsia reported that the junket operator moreover saw its rolling chip turnover for August decline by 75% year-on-year to approximately $110 million, which represented its 23rd consecutive month of such deterioration.

In an effort to diversify its business away from Macau, Iao Kun Group Holding Company Limited last year began trial operations at a pair of Australian casinos operated by Crown Resorts Limited, namely the Crown Melbourne Entertainment Complex and Crown Perth. In addition, late-June saw it declare that it had reached a deal to acquire the Jeju Sun Hotel And Casino in South Korea from Philippine operator Bloomberry Resorts Corporation for an all-cash consideration of $101 million.

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