Asia American can proceed with its billion lawsuit against Las Vegas Sands, which the company says reneged on agreements pertaining to its Macau operations.
A Macau court denied Las Vegas Sands motion to dismiss Asian American’s lawsuit, which was brought by its owner, who accuses the Sands of reneging on agreements made when it sought a partner with a gaming license in Macau.
Eventually, it found one, but its wasn’t Asian American, which then was cut out of Las Vegas Sands operations in Macau. Industry estimates place the value of Las Vegas Sands Macau operations at $11.69 billion last year, accounting for about 58 percent of Las Vegas Sands’ revenues in 2015.
Las Vegas Sands Vice President Ron Reese says the case has no merit, and Las Vegas Sands will prevail.
Asian American says it initially worked with Las Vegas Sands to obtain a gaming license in Macau, but Las Vegas Sands in 2001 chose to go with its current business partner, Galaxy Entertainment of Hong Kong.
While Las Vegas Sands ended its agreement with Asian American, the company says Las Vegas Sands used nearly identical information in venture with Galaxy Entertainment, which eventually secured a Macau gaming license.
Asian American wants 70 percent of Las Vegas Sands profits from its Macau operations over an 18-year period. Las Vegas Sands subsidiary Sands China runs the Macau operations.
Asian American estimates it is owed $10 billion in real and projected profits from Las Vegas Sands from 2004 to 2022.
An attorney for Asian American expects a trial to start soon in Macau, but said a trial date has not been set.
Las Vegas Sands said it isn’t concerned about the matter.
“We have confidence that ultimately the Macao judicial process will reach the same conclusion,” Las Vegas Sands said in a statement.
