A Macau judge ruled last week that Asian American Entertainment Corp. (AAEC) had not proven it had an ironclad agreement to partner with the Las Vegas Sands Corp. on a Macau gaming concession in the early 2000s.
Judge Seng Ioi Man of Macau’s Court of First Instance is hearing the case in which AAEC seeks at least US$7.5 billion in damages from the Las Vegas Sands. The judge said the evidence of a firm partnership did not extend beyond a letter of intent for partnership, signed by both parties in October 2001.
The Sands Corp. went on to win a Macau gaming concession without AAEC–a term that will expire this summer.
According to GGRAsia, during the trial the court heard that Sands had linked with AAEC on a Macau venture, but later aligned itself with Hong Kong businessman Lui Che Woo and Galaxy Casino SA, now Galaxy Entertainment Group Ltd.
The total premium and investment amount Asian American Entertainment had committed for a bid was “very low,” the judge stated.
At first, only three Macau gaming concessions were awarded, but six operators ultimately were formed through a subconcession arrangement after the relationship between Galaxy and LVS ended.
The opposing sides were permitted to challenge the court’s decision on limited grounds. The judgment likely rule on the case by the end of March.
AAEC’s has sought redress in both Macau and the U.S. It sued former LVS Chairman Sheldon Adelson for $5 billion in a Nevada court in 2014.
