Inside Asian Gaming

INSIDE ASIAN GAMING | January 2011 44 Briefs Regional Briefs LVS claims former Sands China CEO discussed Cotai deal with Harrah’s Former Sands China chief CEO Steve Jacobs negotiated a deal with rival US gaming operator Harrah’s Entertainment on Cotai development sites. The revelation comes from the termination letter sent to Jacobs, which was included as evidence in a wrongful dismissal lawsuit filed by the executive. In October, Jacobs filed a lawsuit against Las Vegas Sands Corp (LVS), the parent company of Sands China, claiming he was terminated in July after disputeswith SheldonAdelson, chairman of both LVS and Sands China. The former CEO also accuses Mr Adelson of trying to pressure Macau Government officials. Last month, LVS responded by asking for the lawsuit to be dropped. According to the company’smotion, quotedby newspaper Las Vegas Sun, Mr Jacobs was fired for working on unauthorised deals and repeatedly violating company policy. One of the accusations is that Jacobs negotiated an unspecified deal with Harrah’s for certain Cotai development plots, which could be site 3 or sites 7 and 8. The Government recently rejected Sands China’s application for the concession of plots 7 and 8. Harrah’s is the only major US gaming operator with no presence in Macau and has repeatedly shown interest in entering the local market. The former CEO is also accused of signing an agreement with Playboy before being authorised to do so. The Playboy Club Macao opened its doors at SandsMacao inNovember, while a 30,000 square- feet Playboy Mansion is slated for 2012 on Cotai plots 5 and 6. According to the termination letter, Jacobs entered negotiations and signed deals with hotel operator Four Seasons as well without prior authorisation. LVS’second Cotai resort, opened in 2008, includes a Four Seasons hotel and branded serviced-apartments. The company also only knew about negotiations with entertainment giant Cirque du Soleil midway through the process, the motion says. Cirque du Soleil’s permanent show ZAIA opened at the Venetian resort in July 2008 in a custom-built theatre—a MOP 1.2 billion (US$150 million) investment. Other reasons mentioned are: disagreeing in public with Mr Adelson’s position on the growth prospects for Sands China; negotiating “arrangements” for Cotai plots 5 and 6 without approval; and commissioning a brand study for those sites without informing the board. Attorneys for LVS also claimed Mr Jacobs’ employer was Venetian Macao, so any dispute should be resolved within Macau. The executive’s suit “is a strategic and calculated effort to mislead this court,” LVS said. “There is the potential that if Venetian Macao is not joined in this proceeding, it would be the target of future, duplicative litigation.” Sands China says it is ‘nearing approval’ on sale of Cotai apartment co-op shares SandsChinaLtdannounced it has receiveda letter fromtheMacau Land, Public Works and Transport Bureau which its Macau counsel advises should clear the way for the company to start preparing for the sale of shares in co-op fashion to prospective buyers interested in having a Four Seasons-branded apartment at the Cotai Strip in Macau. The letter states that “the process is at its final proceeding” and that after its approval the government will provide the company a draft contract finalizing the approval process. The draft contract is also expected to be issued shortly. “We truly appreciate the government’s diligence in addressing this matter and we are optimistic that a resolution could be forthcoming very quickly,” said Sands China Chairman Sheldon Adelson. “The company has been inquiring of prospective buyers over many months and has accelerated the inquiries to ascertain the viability of a concentrated sales effort starting after the first of the year.” “The reaction from prospective buyers is very positive and company management is optimistic that our anticipated pricing will be well-received,” he concluded. New Thai-Cambodian spat could hurt border casinos Fresh diplomatic tension between Cambodia and Thailand could create problems for the casinos in the Cambodian border town of Poipet. During a previous row between the two countries in November, cross-border trade was disrupted and the number of gamblers travelling from Thailand into Poipet fell sharply, according to a report at the time in the Bangkok Post . In the latest incident last month, Cambodia said it had arrested a Thai ruling party politician and six others whom it accused of trespassing in a disputed border area. A Cambodian government spokesman said the seven would be charged with illegally entering Cambodian territory. Thai Democrat Party lawmaker Panich Vikitsreth was detained along with a group of journalists and members of the royalist ‘Yellow Shirt’movement while inspecting contested territory fromThailand’s eastern Sa Kaeo province. Poipet is just over the border in Cambodia. The town principally caters to Thai gamblers who cannot legally engage in casino gambling in their own country. Relations between the two countries have been strained following a series of deadly border clashes in July 2008 over land surrounding the 11th century Preah Vihear temple after it was granted UN World Heritage status. Thailand was outraged when Cambodia hired ousted former Thai premier Thaksin Shinawatra—a hero to many of Thailand’s opposition ‘Red Shirts’—as an economic adviser in November 2009. Stanley Ho steps aside to let wife take SJM reins Macau casino tycoon Stanley Ho has relinquished his role as head of Macau casino operator Sociedade de Jogos de Macau (SJM) Steve Jacobs The Poipet border crossing