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June 3, 2013

Vegas Jury Goes With Businessman Against Sands

Filed under: Casino — Tags: — OCE News @ 6:07 am

On May 14, a Vegas jury awarded $70 million to Richard Suen, a Hong Kong businessman, in a settlement against Las Vegas Sands Corporation which is run by Sheldon Adelson. Suen had claimed that he had been denied payments of as much as $328 million for his assistance in securing a gambling license in Macau for the Las Vegas-based casino company. Macau is the only location in China that allows legal casino gambling.

Attorneys for the Sands argued that Suen was not owed anything as he allegedly did not come through on his promises to help executives of the company. The jury of deliberated two days and then came back with the award going to Suen. It was an eight-person jury. It is thought that this judgment will end what has turned out to be a nine year fight.

For his part, Suen has said that he was hired by the Sands to help bring about favor with the Chinese government back in the first part of the 2000’s. He states that he was successful in these efforts and that he deserved to be paid for his work. His first suit was brought in 2004 and reported that his company was owed 2 percent of the casino’s profits (net) as well as $5 million for its assistance in getting the Macau gambling license.

Attorneys for Sands do not deny the company had offered Suen pay, but that that pay was based on a successful outcome which they claimed had not occurred.

After the judgment was read, the attorneys for the Sands asked that a retrial be allowed. They stated that they had learned that one of the jurors had a prejudice against Sheldon Adelson. The judge said that he was not convinced of any such prejudge and said that the attorneys for the Sands should have made their case for a retrial earlier. Adelson who had been at most of the proceedings was not present on Tuesday.

The Las Vegas Sands has already opened some four resorts along the Macau area known as the Cotai Strip. It is reported to be making nearly 60 percent of its profits from these facilities. Macau is an hour away from Hong Kong via ferry. The Sands operates on the Vegas strip as well with its Venetian and Palazzo casinos.

As for this current case, the Sands ended up partnering with Galaxy Entertainment (based in Hong Kong), and it was then awarded the gambling license. However, the mentioned companies were not able to reach a contractual agreement, and the partnership folded. It was at this time that Macau gave the Sands a sub-concession. This, according to Suen, was the successful outcome that he had promised.

This was not the first time this case has been before a Clark County court. Back in 2008, Suen was awarded $58.6 million. However, that verdict was overturned by the Nevada Supreme Court. One reason for the overturn was that the judge at the time should not have allowed hearsay evidence to be presented.

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