Macau-based casino operator Galaxy Entertainment Group Ltd said in a Thursday statement that it was the one to terminate agreements with Macau VIP gambling room investor Iao Kun Group Holdings Ltd. Galaxy Entertainment said it made the decision after what the casino group alleged was a breach of contract by the VIP promoter.
The contract concerned two VIP rooms at, respectively, Galaxy Entertainment’s venues Galaxy Macau, on Cotai, and StarWorld Hotel on the Macau peninsula. Iao Kun had operated the rooms via business partners.
The junket group had said on Tuesday that the termination of the two VIP rooms was with effect from September 10. The firm said the decision to close the two rooms was part of a “comprehensive strategic review” of its operations in Macau.
On Thursday, Galaxy Entertainment said it wished to “put the record straight”.
“Galaxy Entertainment has terminated the promoter agreements with Iao Kun and closed Iao Kun VIP rooms in Galaxy Macau and StarWorld Hotel as a result of Iao Kun’s breach of the agreements made with us,” said Buddy Lam Chi Seng, assistant senior vice president of public relations at Galaxy Entertainment, in a statement.
“With the termination of the business relationship with Iao Kun, Galaxy Entertainment will pursue vigorously against Iao Kun for its breach of undertakings and agreements by taking legal action against it and its relevant directors and/or officers,” Mr Lam added.
GGRAsia approached Iao Kun seeking a response to Galaxy Entertainment’s statement, but a spokesperson for the junket group said the firm would not comment.
Iao Kun announced on September 2 a review of its VIP gaming room operations in Macau. Such a review was “due to the ongoing challenging VIP gaming environment [in Macau] and to enhance its operating performance,” the junket group had said.
Following the closure of three VIP rooms since August 31, Iao Kun’s business partners still promote two high roller facilities in Macau casinos, namely at: the City of Dreams Macau resort of Melco Crown Entertainment Ltd on Cotai; and at Le Royal Arc, a peninsula venue which operates under the gaming licence of SJM Holdings Ltd.
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”China has been strengthening the control over capital flow, and the impact of that has already been reflected [on Macau’s gaming revenue trend]. There should not be any bigger impact from the new… legislation [on the mainland] … on the gaming revenue trend here”
Wilfred Wong Ying Wai
President of Macau casino operator Sands China