Hong Kong Court’s Decision
The Court of First Instance in Hong Kong has turned down a lawsuit from a previous Crown Resorts marketing leader who sought 24% yearly interest on gambling debts owed by the Chinese businessman Huang Youlong. This decision underscored that the debt was owed to the Macau junket operator Suncity, not the executive personally.
Background on the Dispute
Huang, linked to Alibaba founder Jack Ma and actor Zhao Wei, lost AU$60 million ($41.7 million) in gaming at Crown’s Perth venue in a matter of days in 2015. Media described it as one of the most significant losses in Australian casino history.
Details of the Credit Arrangement
Chua Eh Fong, a former Crown marketing executive, attempted to claim personal credit arrangements with Huang, which would allow her to charge high interest. However, Judge Alan Kwong found no evidence of these agreements, affirming the debt was between Suncity and Huang.
Implications for Junket Operations
This case reveals the intricacies of junket credit practices during the VIP era, with investors guaranteeing credit via Suncity. Regulatory issues with such arrangements have previously led Crown to cut ties with junket operators, similar to other significant moves within the Macau gaming strategy.
Resolution of the Debt
Huang repaid the debt directly to Suncity between 2016 and 2019. Suncity confirmed complete repayment in 2019. The court also voided Chua’s claim on a dishonored cheque related to this debt, which should have been directed to Suncity. The complexity of these arrangements underscores the need for transparent operations as evidenced by trends in regulated iGaming.