Inside Asian Gaming

August 2014 inside asian gaming 43 casino junkets, earning commissions based on the number of clients and the amounts the clients gamble, sums that could reach hundreds of thousands of dollars, a police source told the Post . Loan-sharking is even a larger source of income, the report said. However, the system has been upset in recent months, police say, after one faction began encroaching on another’s territory, sending in female agents known as Fei Sing to solicit clients on a street outside Hung Hom. The intrusion sparked “negotiations” late last month among dozens of mobsters in broad daylight outside the station, capturing the attention of police and sparking the raids. “If they fail to regulate themselves in the underworld, police will take over and regulate them,” the source said. Soft Q2 for Macau VIP; but Mass Roars On Former Macau Partner Suing LVS for US$5 Billion A former business partner of Las Vegas Sands in Macau has accused the gaming giant of misappropriating trade secrets and is suing for at least US$5 billion. Asian American, headed by Taiwanese businessman Marshall Hao, filed the complaint in US District Court in Nevada, where LVS is based, claiming LVS violated their joint ownership of copyright related to LVS’ ultimately successful bid to win a casino concession in Macau. The case is the latest in a string of legal claims that have beset LVS in connection with its dealings in China. Las Vegas Sands and Asian American jointly submitted a bid for a Macau gaming concession in 2002. But Sands later switched partners, teaming up instead with Hong Kong’s Galaxy Entertainment. The Sands-Galaxy combination went on to win one of the three original licenses with a bid submission that was nearly identical to the bid crafted with Asian American, according to Asian American, which claims that Sands is guilty of disclosing information to Galaxy that was so sensitive the parties “hired bodyguards” to protect the documents. The $5 billion in damages sought by Asian American is calculated in part on the earnings LVS has enjoyed from its Macau casinos. “This is an action for money damages arising out of profits owed to plaintiff by [LVS] for use and benefit of the work which ultimately led to the Las Vegas Sands enterprise securing a Macau concessions contract,” the company said in the US complaint. Las Vegas Sands denies the claims. “Using a different lawyer every time, [Asian American] has repeatedly filed lawsuits trying to take credit for that which they didn’t do,” the company said. “US courts have consistently rejected those efforts. Las Vegas Sands will respond to this latest version of the same meritless lawsuit in court.” Asian American is also suing in Macau. Sands was forced last year to pay US$70 million to Hong Kong businessman Richard Suen after he sued the company in Nevada state court in Las Vegas claiming it had failed to make good on a promise to compensate him for using his influence and contacts to help win the Macau concession. The company currently is engaged in a long-running courtroom battle with the former head of its Macau operations, Steven Jacobs, who is suing for wrongful termination. Sands also is under investigation by the US Department of Justice and the Securities and Exchange Commission in connection with its adherence to federal anti-corruption laws. REGIONAL BRIEFS Macau casino gaming revenue hit US$11.4 billion in the quarter ended 30th June, a 5.5% increase over the same period last year that was driven primarily by continued strong growth in the mass- market segment. The casinos have amassed $23.7 billion in gaming revenue through the first six months of the year, a 12.8% increase over H1 2013. Mass-market gambling accounted for nearly 40% of the combined second quarter take, about $4.45 billion, according to figures released by the Gaming Inspection and Coordination Bureau. It was up more than 35% year on year. Most of it by far, more than 77%, was cash baccarat play. It was a rough quarter for the VIP segment, whose 60.1% of the market was considerably off Q2 2013’s 67.3%. Revenue was down a sizable 16% from the first quarter, totaling $6.71 billion, a 5.8% decline year on year. It was the first year-on-year decrease since Q3 2012, when it dipped 1.1%, and was a major contributor to June’s first market-wide monthly revenue drop (minus-3.7%) in more than five years. Softness in VIP has dragged down expectations for the year, with most analysts downsizing their forecasts into the low double digits. Slot revenue amounted to $442.9 million in the quarter, up 3.8% and accounting for just under 4% of the market. Sands was forced last year to pay US$70 million to Hong Kong businessman Richard Suen.