No material exposure from other Dore case linked lawsuits – Wynn CEO

Wynn Macau does not expect any “material exposure at this time” from other lawsuits associated with the Dore case, CEO Craig Billings indicated in the group’s conference call to discuss its first-quarter results.

In November 2021, the Court of Final Appeal considered Wynn Macau as jointly liable alongside junket operator Dore Entertainment Co. Ltd for the repayment of deposits stolen by a former employee of this junket.

Pursuant to the ruling, Wynn Macau was required to pay approximately US$1.2 million, inclusive of accumulated interest, to the plaintiff.

According to Wynn, there are other claims by individuals who say to be investors in or persons with credit in accounts maintained by Dore, who allege that Dore failed
to honour the withdrawal of funds deposited as investments or gaming deposits, which resulted in their losses.

The principal allegations common to the lawsuits are that Wynn Macau, as a gaming concessionaire, should be held responsible for Dore’s conduct on the basis that it is responsible for the supervision of Dore’s activities at Wynn Macau.

Wynn stated it believes most remaining cases are without merit and unfounded and intends to ‘vigorously defend’ against the remaining claims pleaded in these lawsuits.

“The reality is that we haven’t accrued for any material exposure and each individual claim comes down to a really detailed analysis around clear proof of a deposit in your particular property, the statute of limitations on a claim in a number of other very, very nuanced legal points, we don’t expect material exposure at this time,” Billings said in the conference call.

Amendments proposed to the local gaming law and junket operations are currently under evaluation by the Legislative Assembly, clarify that gaming concessionaires are jointly and severally liable not just for their gaming promotion activities, but also for members of administrative organs, employees, and collaborators of their gaming promoters arising from carrying out gaming promotion activities in their casino.

The bill also provides criminal penalties for junkets who “illegally accept deposits from the public, with offenders facing up to five years in prison.

Deposits with a Macau casino, via the respective VIP host or a junket, should still be legitimate as long as the deposit funds involved are used only for gambling