Scientific Game

Universal Entertainment confident of presenting Wynn Resorts lawsuit at trial

Sunday, 19 November 2017 16:35
Share
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

Strong fourth quarter results drive MGM China growth in 2017

Strong fourth quarter results drive MGM China growth in 2017 MGM China saw its revenue grow 3.0% for Full Year 2017 to HK$15.4 billion, aided by strong fourth quarter results in which net revenue rose 10% year-on-year and 17% sequentially to HK$4.6 billion. Casino revenue at MGM Macau contributed the vast majority of MGM China’s revenue for the 12 months t... Wednesday, 21 February 2018 06:49

Japan casino tax rate could be as high as 50%, floor space and entry restrictions looming

Japan casino tax rate could be as high as 50%, floor space and entry restrictions looming Japan is considering a tax rate of up to 50% on revenue made by local casinos, with the proceeds to be split between national and local governments, according to The Japan Times. The report cites ongoing discussions between the ruling Liberal Democratic Party and Komeito which have outlined plans f... Wednesday, 21 February 2018 06:04

Universal rejects Steve Wynn claims that Stockholders Agreement no longer binding

Universal rejects Steve Wynn claims that Stockholders Agreement no longer binding Japan’s Universal Entertainment Group has rejected an assertion by former Wynn Resorts Chairman and CEO Steve Wynn that a 2010 Stockholders Agreement between Mr Wynn, ex-wife Elaine Wynn and Universal subsidiary Aruze USA “no longer binds either party.” The Wynn Resorts founder made the state... Wednesday, 21 February 2018 05:38

Revenue up but profit down as bad luck hits Star Entertainment Group

Revenue up but profit down as bad luck hits Star Entertainment Group Australia’s Star Entertainment Group saw its profit tumble 76.8% to AU$33 million and EBITDA fall 33.6% to AU$200 million in the six months to 31 December 2018 due to bad luck in its international VIP business. But the results didn’t accurately reflect strong business volumes, with internationa... Wednesday, 21 February 2018 04:53

Current Issue

Design For Profit

Design For Profit Architect Paul Steelman provides his insights into designing the most expensive privately funded buildings on earth and making and breaking trends. By Muhammad Cohen | Editor-at-Large EMINENT casino architect Paul Steelman helped create the Asian gaming boom with the groundbreaking design of Sands... Monday, 29 January 2018 15:11

Climbing the mountain

Climbing the mountain   ASX-listed Silver Heritage Group finally launched hotel and casino operations at its new Tiger Palace Resort Bhairahawa in late 2017, having survived the 2015 earthquake, a fuel blockade on the Nepal-India border and an AU$19 million (US$14.4 million) funding shortage as a result of the delays. ... Monday, 29 January 2018 15:07

Can sportsbooks survive a 1% tax on handle?

Can sportsbooks survive a 1% tax on handle?   The big news coming out of the United States this year is the likely striking down of the federal ban on sports betting. But with many states licking their lips in anticipation of added tax dollars, the sports betting industry may well have another crippling fight on its hands. THE US Supreme C... Monday, 29 January 2018 15:05

Herman Ng:Macau Pioneer

Herman Ng:Macau Pioneer Inside Asian Gaming discovers a bit more about Herman Ng, CEO and Executive Director of Macau-based slot machine services firm Asia Pioneer Entertainment (APE). Ben Blaschke: Can you start by telling us a bit about yourself and your background? Herman Ng: I grew up in Macau and then when I was 16 ... Monday, 29 January 2018 14:52