GGRAsia – Macau biz gets US$175mln arbitration award re Lao slot club

Macau biz gets US$175mln arbitration award re Lao slot club

Feb 27, 2024 Newsdesk Industry Talk, Latest News, Rest of Asia

A Macau company has obtained an arbitration decision in its favour worth just over US$174.7 million following a legal dispute over some gaming business activity in Laos. The arbitration was by the International Chamber of Commerce (ICC) via the latter’s Macau office.

The claimant was Sanum Investments Ltd, represented by Macau-based law practice FC Law, and Stinson LLP from the United States.

The respondents were ST Group Co Ltd, and ST Vegas Co Ltd, both Lao companies; and their owner, a businessman called Sithat Xaysoulivong, a Lao citizen. The respondents were represented by Rajah & Tann Singapore LLP; Haridass Ho & Partners, also from Singapore; SPL Law Office Co Ltd from Laos; and JNV – Lawyers & Notaries, a Macau law practice.

According to legal documents seen by GGRAsia, Sanum and the ST side had a joint venture for a slot club at the Vientiane Friendship Bridge, at the Lao border with Thailand, and which was known as Thanaleng Slot Club, now known as ST Casino.

According to the claimant, profits at Thanaleng Slot Club had increased “from US$1 million per year before Sanum was involved, to US$3 million per month after Sanum became involved”.

On October 16 2023, the tribunal ruled the respondents breached their agreements with Sanum, and said Sanum was entitled to just over US$170.2 million in damages, plus just over US$2.7 million in costs, as well as nearly US$1.8 million that Sanum “previously collected” in a Singapore process. Sanum was also entitled to annually-compounded interest at the U.S. Federal Reference Interest Rate, currently at 5.5 percent, stated the tribunal.

In November last year, the respondents filed an application seeking a decrease in the amount of damages awarded, which the tribunal of the ICC unanimously rejected on January 25 this year.

On January 26, the final decision was “notified to the parties”, according to a certificate issued by the arbitration body. It stated that, under existing regulations, “every award shall be binding on the parties”.

“By submitting the dispute to arbitration … the parties undertake to carry out any award without delay and shall be deemed to have waived their right to any form of recourse insofar as such waver can validly be made,” it added.

Sanum filed on February 9 notice to the Lao consulate general in Hong Kong regarding the arbitration award. Sanum also submitted to that country’s Ministry of Foreign Affairs, Ministry of Justice and the Supreme Court, letters requesting the recognition of the award.