{"id":189162,"date":"2021-10-15T09:51:37","date_gmt":"2021-10-15T16:51:37","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=189162"},"modified":"2021-10-15T10:21:14","modified_gmt":"2021-10-15T17:21:14","slug":"aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/","title":{"rendered":"The $12B Breach of Contract Claim Against LVS is Overblown, Court Hears"},"content":{"rendered":"

A Taiwanese businessman\u2019s US$12 billion breach of contract claim<\/a> against LVS Corp is \u201cexaggerated,\u201d according to Sands China CFO Sun MinQi.<\/p>\n

\"LVS\"
Completed in 2007, the Venetian Macao, pictured, was LVS\u2019s second Macau property and the first on the Cotai Strip. (Image: Joe Cavaretta\/AP)<\/figcaption><\/figure>\n

As reported by GGRAsia, Sun told a Macau courtroom Friday the figure had been arrived at by faulty accounting, and did not reflect the reality of LVS\u2019s business in Macau.<\/p>\n

The lawsuit is the longstanding case brought against LVS by Marshall Hao<\/a>, whose Asian American Entertainment Corp Ltd (AAEC) partnered with the US casino giant when it was looking to enter Macau 20 years ago.<\/strong><\/p>\n

In 2001, LVS and AAEC submitted a joint bid for a Macau gaming licensing. This was shortly after the Chinese special administrative region\u2019s government opted to liberalize the previously monopolistic casino market.<\/p>\n

Later, LVS switched to Galaxy Entertainment Group, and it was this partnership that won the license. In the ensuing decade, LVS\u2019s Macau arm, Sands China, helped the group to grow into the richest casino operator in the world.<\/p>\n

18 Years of Profits<\/h2>\n

AAEC says this was breach of contract. Its claim for $12 billion in \u201clost earnings\u201d is based on 70 percent of Sands China\u2019s profits in the gambling hub. That dates from the launch of the Sands Macao in 2004 through to 2022, the year the license expires.<\/p>\n

LVS disputes not only its obligation to AAEC, but also the size of the proposed award.<\/p>\n

Sun said Friday the figure was based on a misunderstanding of the financial statements submitted annually to the city\u2019s casino regulator. Those do not consider things like capital expenditures and associated depreciation and amortization costs.<\/p>\n

\n

Sun said the group\u2019s aggregate capital spending in Macau has been US$15 billion, which was largely plowed into the construction and development of new integrated resorts on the Cotai Strip. <\/strong><\/p>\n<\/div>\n

The claim also failed to account for interest payment expenses, taxation-related items, and a host of other hidden costs, Sun added.<\/p>\n

He also noted Venetian Macao had experienced \u201chuge losses\u201d in 2020 and in the first half of 2021, which had not been factored into AAEC\u2019s projected figures.<\/p>\n

Unequal Partners<\/h2>\n

According to court documents, Hao claims LVS would not have been able to successfully negotiate the complex licensing process without his early consultation. He also claims he advised LVS that a Venice-themed casino like the one it had recently opened in Las Vegas would work well in Macau.<\/p>\n

Earlier this week the court heard from David Green, who was part of the consulting team hired by the Macau government to assess the license bids.<\/p>\n

Testifying for the defense, Green said that when bids were being considered, LVS\u2019s experience as a casino operator in Las Vegas vastly outweighed any contribution that could have been made by its local licensing partners.<\/p>\n","protected":false},"excerpt":{"rendered":"

A Taiwanese businessman\u2019s US$12 billion breach of contract claim against LVS Corp is \u201cexaggerated,\u201d according to Sands China CFO Sun MinQi. As reported by GGRAsia, Sun told a Macau courtroom Friday the figure had been arrived at by faulty accounting, and did not reflect the reality of LVS\u2019s business in Macau. The lawsuit is the […]<\/p>\n","protected":false},"author":36,"featured_media":189163,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,60],"tags":[],"acf":[],"yoast_head":"\nAAEC\u2019s $12B Lawsuit Against LVS is Overblown, Court Hears<\/title>\n<meta name=\"description\" content=\"LVS tells Macau court Marshall Hao\u2019s Asian American Entertainment Corp\u2019s $12 billion claim is inflated and based on faulty accounting.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AAEC\u2019s $12B Lawsuit Against LVS is Overblown, Court Hears\" \/>\n<meta property=\"og:description\" content=\"LVS tells Macau court Marshall Hao\u2019s Asian American Entertainment Corp\u2019s $12 billion claim is inflated and based on faulty accounting.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-15T16:51:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-15T17:21:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/venetian.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/\",\"url\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/\",\"name\":\"AAEC\u2019s $12B Lawsuit Against LVS is Overblown, Court Hears\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/venetian.jpg\",\"datePublished\":\"2021-10-15T16:51:37+00:00\",\"dateModified\":\"2021-10-15T17:21:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"LVS tells Macau court Marshall Hao\u2019s Asian American Entertainment Corp\u2019s $12 billion claim is inflated and based on faulty accounting.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/aaecs-12b-lawsuit-against-lvs-is-overblown-court-hears\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/venetian.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/venetian.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Completed in 2007, the Venetian Macao, pictured, was LVS\u2019s second Macau property and the first on the Cotai Strip. 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