• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Donaco to seek court injunction vs Thai ex-partner

Nov 23, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck  


Donaco to seek court injunction vs Thai ex-partner

Australia-listed Asian casino operator Donaco International Ltd is to seek an injunction via the Cambodia courts regarding alleged breaches of an agreement struck with a Thai former business partner, says Joey Lim Keong Yew, managing director of Donaco. The casino firm is also initiating arbitration on the issues via Singapore, the company said on Thursday. The firm did not identify the partnering person or entity by name.

In mid-September, Donaco stated it had issued a “cease and desist” letter to the former partner, that Donaco claimed was still operating the Star Paradise border casino near its own property, Star Vegas Resort and Club, in Poipet, Cambodia, even after a deal for Donaco to run Star Paradise expired and was not renewed by Donaco.

Donaco completed the purchase of Star Vegas in July 2015 for a consideration put at US$360 million. Star Vegas has mainly catered to Thai customers and offers bets in Thai baht. Donaco also operates the Aristo International Hotel in Vietnam, targeting gamblers from neighbouring China.

In Cambodia, the Star Vegas deal included a “vendor warranty” that the venue’s earnings before interest, taxation, depreciation and amortisation would “total at least US$60 million per year for the two full years following acquisition”, and that the vendor would manage Star Vegas during that period. The vendor was described in Donaco’s statutory 2015 accounts filed to the Australian Securities Exchange as “independent third parties”.

Mr Lim told the firm’s annual general meeting on Thursday: “Unfortunately, we have found it necessary to commence legal proceedings against the former Thai vendor, for breaches of his agreements with us, relating to gaming activities continuing at the neighbouring Star Paradise property without our consent.”

Mr Lim, a member of the eponymous Malaysian business dynasty that founded global casino investor Genting Bhd, added: “Discussions are ongoing with a view to resolving all matters, but in the meantime we have now lodged an application for an injunction with the Cambodian courts, and we have also taken steps to initiate arbitration proceedings in Singapore.”

“While these matters are resolved, we have withheld payment of the final vendor management fee for the Star Vegas business that related to the 2017 financial year,” he added.

Mr Lim said in Thursday’s address, referring to the period after the expiry of the two-year management deal with the Star Vegas vendor: “VIP junket turnover at Star Vegas for the period from July to October is substantially below last year. This has occurred due to a change in active junkets at the property, following the management transition.” The executive added the firm was rebuilding its junket business “strongly” via introduction of new junket partners designed to bring in customers from further afield than Thailand.

In August Donaco reported statutory net profit after tax for the 12 months to June 30 down 60 percent year-on-year. It cited as factors, one-off items and “reduction in visitation and turnover” from Thai customers at Star Vegas following the death of Thailand’s King Bhumibol Adulyadej in October last year.

On October 16, Donaco said it was implementing an “on-market buy-back” – to run for up to 12 months – for as many as 41.5 million of its shares, to a maximum of 5 percent of its ordinary issued shares.


  • tweet
Related articles
  • Foreigner-only Vietnam casinos seek local trade: report
    Foreigner-only Vietnam casinos seek...

    Mar 02, 2021  

  • NagaWorld ops paused after 11 staff positive for Covid-19
    NagaWorld ops paused after 11 staff...

    Mar 02, 2021  

More news
  • Covid-19 test cert no longer needed for Macau casino entry
    Covid-19 test cert no longer needed for...

    Mar 02, 2021  

  • Lim Kok Thay, GEN Singapore execs in US$1.3mln stock award
    Lim Kok Thay, GEN Singapore execs in...

    Mar 02, 2021  


Latest News

Covid-19 test cert no longer needed for Macau casino entry

Covid-19 test cert no longer needed for Macau casino entry

Mar 02, 2021  

From after the stroke of midnight on Wednesday (March 3) people wishing to enter Macau casino floors will no longer need to show a test certificate proving they are free of Covid-19 infection, said...
Read More
Lim Kok Thay, GEN Singapore execs in US$1.3mln stock award

Lim Kok Thay, GEN Singapore execs in US$1.3mln stock award

Mar 02, 2021  

Five groups qualify for next phase of Nagasaki casino tilt

Five groups qualify for next phase of Nagasaki casino tilt

Mar 02, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

”Consumers are increasingly comfortable using cashless technology, and they will continue to expect this option to be available on the floor"

Matt Wilson

Chief executive – gaming business at casino equipment and technology supplier Scientific Games



Most Popular

  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
  • Melco’s Lawrence Ho hopeful on Macau recovery in MarchMelco’s Lawrence Ho hopeful on Macau recovery in March February 26, 2021
  • Macau casino GGR down 9pct m-o-m in February: govtMacau casino GGR down 9pct m-o-m in February: govt March 1, 2021
  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
  • Suncity to open clubs at Londoner Macao, Lisboa PalaceSuncity to open clubs at Londoner Macao, Lisboa Palace February 26, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us