Scientific Game

Universal Entertainment confident of presenting Wynn Resorts lawsuit at trial

Sunday, 19 November 2017 16:35
Visit us

Universal Entertainment Corporation says it is confident it will have the opportunity to present its case to reclaim 24.55 million shares in Wynn Resorts, as well as more than US$1 billion in owed share value, following a Nevada court decision last week denying Wynn’s motion for a summary judgement.

The Nevada State Court rejected a contention by Wynn Resorts that all claims filed by Universal Entertainment subsidiary Aruze USA Inc in 2012 were groundless as a matter of law, with the proceedings now free to proceed to a trial scheduled for April 2018.

“The company strongly believes that it is able to present its case at trial in light of these recent decisions of the Nevada State Court,” Universal said in the wake of the finding.

The lawsuit, originally filed in March 2012, seeks to return 24.55 million shares its says “were unfairly and improperly redeemed by Wynn Resorts” and to seek damages from Wynn Resorts “well in excess of US$1 billion for undervaluing the redeemed shares by more than 30% of the then market price of the shares, even if the redemption was valid.”

It came after the Wynn board forcibly redeemed Universal’s shares worth almost US$2.8 billion – subsequently issuing a promissory note for just US$1.9 billion – claiming Universal founder and Wynn Resorts board member Kazuo Okada put Wynn’s gaming license in jeopardy amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000. Okada was also kicked off the board.

At the heart of the matter is Universal’s contention that the Wynn Resorts board acted on the orders of Chairman and CEO Steve Wynn rather than independently when it kicked Okada out. The Nevada State Court has also ruled that both Mr Wynn and Elain Wynn may have to stand trial on an individual basis.




What's new

VIDEO: Week in Review

VIDEO: Week in Review Inside Asian Gaming takes a look back at the biggest stories of the past week. Friday, 25 May 2018 06:54

Macau May GGR in line for high-teen growth

Macau May GGR in line for high-teen growth Macau is on track to report a year-on-year GGR increase of between 17% and 19% in May, say analysts, after rebounding strongly from the Labor Day holiday weekend. According to JP Morgan’s DS Kim, mass market is leading the way with growth of more than 20% year-on-year while VIP GGR is tracking in... Friday, 25 May 2018 06:36

PAGCOR says officials safe after Duterte gambling comments

PAGCOR says officials safe after Duterte gambling comments Philippines gaming regulator PAGCOR says that its leaders are safe following reports this week that a number of high-ranking gaming officials were set to be fired by President Rodrigo Duterte. PAGCOR was quick to absolve itself of any link to comments made by Duterte after he asked two ranking offi... Friday, 25 May 2018 05:43

Genting Berhad sees 10% growth in 1Q18 on Malaysia, Singapore IRs

Genting Berhad sees 10% growth in 1Q18 on Malaysia, Singapore IRs Genting Berhad saw its revenue grow 10% to RM5.3 billion for the three months to 31 March 2018, boosted by its leisure and hospitality segment and in particular strong results at its flagship integrated resorts in Malaysia and Singapore. Malaysia’s Resorts World Genting (RWG) enjoyed the biggest ... Friday, 25 May 2018 04:59

Current Issue

Macau and Japan: Licensing looms large

Macau and Japan: Licensing looms large The next few years are set to be the most crucial period ever in the Asian gaming industry – one which will lay the ground rules for decades to come in the world’s largest gaming market and what’s set to become the world’s second largest. By Ben Blaschke and Andrew W Scott Macau and Japan ... Monday, 30 April 2018 12:39

Pachinko: Japan's Unlucky Loser

Pachinko: Japan's Unlucky Loser Japan’s preparations for integrated resorts are hitting pachinko harder than the actual casinos ever will. By Muhammad Cohen Japan won’t open its first integrated resort for years, if ever, but the IRs already have their first loser, the country’s unique and ubiquitous pachinko business. Pac... Monday, 30 April 2018 12:33

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market Global Market Advisors’ Brendan D Bussman runs through the pros and cons of Japan’s problem gambling legislation. By Brendan D Bussmann As Japan continues to look at the development of integrated resorts (IR), many people engaged and following the market are focused on the IR Implementation Bi... Monday, 30 April 2018 12:28

Safety First

Safety First The International Association of Gaming Advisors (IAGA) will hold its 37th annual International Gaming Summit during G2E Asia from 14 to 16 May at Four Seasons Macao. Among the many insightful seminars and events that will comprise IAGA’s summit is a responsible gaming workshop to be held on Wedne... Monday, 30 April 2018 12:12