Want to PLAY.... pls be RESPONSIBLE

[Scb11980]

RWS chases high rollers to court over gambling debts

 

Following in MBS's footsteps, it is suing 5 men over debts totalling $8.5m

 

By GRACE LEONG

 

(SINGAPORE) First it was Marina Bay Sands (MBS). Now, Resorts World Sentosa (RWS) has turned to Singapore's High Court in its efforts to pursue gambling debt collections against local and international high rollers.

 

In its first-ever legal salvo against defaulting casino gamblers in Singapore, Resorts World at Sentosa Pte Ltd on Monday brought five lawsuits against three Malaysians, one Hong Kong SAR resident and one Singaporean to collect nearly $8.5 million in unpaid gambling debts.

 

This comes several months after MBS stepped up debt collection efforts with a slew of seven lawsuits filed in the High Court against several premium players at its Paiza Club to recover $7.89 million in alleged unpaid gambling debt. That's in addition to its ongoing lawsuit against Lester Ong Boon Lin, subject of the first gambling debt collection case here.

 

According to court papers filed by Straits Law Practice LLC on behalf of Resorts World at Sentosa, Malaysians Wong Kah Hin, Chong Kim Foo and Chu Kong Ming are accused of defaulting on $2.95 million, $1.4 million and $480,546 in gambling debts respectively.

 

Mr Wong, according to one suit, had applied for a $3 million credit line on April 29, 2010. On Nov 27, 2010, he was issued $3 million worth of casino chips, which he gambled. After a $47,520 discount for commission was offset against his credit line, he still owed RWS $2.95 million.

 

RWS took legal action after two cheques he gave in the amounts of HK$10 million and HK$8.31 million (being the equivalent sum of $2.95 million) bounced, and he allegedly failed to respond to requests to make payment.

 

In another case, Mr Chong was issued a $1 million credit line on July 25, 2010, which was increased to $2 million on Aug 11, 2010. On Aug 21, 2010, his credit line was increased by $500,000, and on Oct 13, 2010, by another $500,000.

 

As at Oct 13, 2010, he had gambled $1.43 million. After a $26,432 discount for commission and his deposit with RWS was offset against his credit line, he still owed $1.4 million. RWS filed suit after he failed to respond to its letters of demand.

 

In Mr Chu's case, he was issued $500,000 in casino chips on Feb 6 last year. After a $11,352 discount for commission and his deposit with RWS was offset against his credit line, he still owed $488,648. RWS took action after he paid $8,102 of his debt but allegedly defaulted on the rest.

 

Most casinos globally would prefer to enter into a voluntary payment agreement with the customer, said Jonathan Galaviz, head of global tourism consultancy Galaviz & Co in Las Vegas.

 

'But it's quite common for casinos that offer credit to engage in legal remedies in instances where default has occurred,' he said. But in taking action against customers, the casino industry must be mindful of its image, he added.

 

In another suit, Hong Kong citizen Leung Moon Chuen was issued $1 million in credit on June 26, 2011, which was increased by another $1 million a month later. On Aug 20, 2011, his credit line was increased to $4 million, of which $3 million was gambled. As at Oct 26, 2011, after a $1.03 million discount for commission and his deposit with RWS was offset against his credit line, he still owed $1.97 million.

 

Singaporean Phuah Hock Guan alias Phuan Hock Guan, a premium player at RWS, allegedly owed RWS $1.68 million in unpaid gambling debts.

 

On April 15, 2010, Mr Phuah was issued a $1 million credit line. As part of a credit agreement, he was required to issue a blank cheque to RWS as security to be applied towards any outstanding debt.

 

On Nov 20, 2010, his credit line was increased to $2 million, which he gambled. As at March 14, 2011, after a $317,642 discount for commission and his deposit with RWS was offset against his credit line, he still owed $1.68 million.

 

RWS took legal action after his cheque bounced, and he failed to respond to requests for payment.

 

Some gaming analysts say RWS's legal move isn't surprising given its management's cautious stance on credit in the face of weakening regional economic growth.

 

For fiscal 2011 ended Dec 31, RWS parent Genting Singapore's bad debt provisions totalled $121.1 million, up 48 per cent from $81.7 million a year ago. The company wrote off $219,000 in net bad debts for the fourth quarter, and about $995,000 for fiscal 2011.

 

But its fourth-quarter receivables and bad debt provisions showed a 'marked improvement', said Tan Hee Teck, president and chief operating officer of Genting Singapore and chief executive of RWS, in a recent earnings call.

 

Genting Singapore reported $20.7 million in bad debt provisions for the fourth quarter, down from $27.8 million a year ago, and from $56.9 million for the third quarter.

 

'This likely reflects management's decision to tighten its credit policy,' Citi Investment Research said in a Feb 22 report.

 

For the fourth quarter, RWS reported $398.8 million in Ebitda (earnings before interest, tax, depreciation and amortisation) and Ebitda margin of 52 per cent. That's up from $384.7 million a year ago, and from $375.5 million in the third quarter.

 

 

[Scb11980]

Mr Wong, according to one suit, had applied for a $3 million credit line on April 29, 2010. On Nov 27, 2010, he was issued $3 million worth of casino chips, which he gambled. After a $47,520 discount for commission was offset against his credit line, he still owed RWS $2.95 million.

 

 

BECOMING A JUNKET - NOT BANK

COMISSION SO MUCH FOR ONE CLIENT

 

 

 

 

[Maxus-MIFA9]

RWS are rich...

 

Why we border who they sue ...

 

 

[Nkps]

RWS are rich...

 

Why we border who they sue ...

Uncle, is bother, not border.

[Sk65]

borders close liao

if want, go kino

Edited March 14, 2012 by Sk65

[The_Bear]

borders close liao

if want, go kino

 

kino got sell sachs books.

[Vhtfhwlego]

Want to PLAY.... pls be RESPONSIBLE

 

Remember, raw is war.

[The_Bear]

Interest free loan with discount on principle...Best!!

 

I need to talk to Stan chart and tell them RWS offering better rates.

Edited March 14, 2012 by Bavarian

[Nkps]

borders close liao

if want, go kino

[Scb11980]

Interest free loan with discount on principle...Best!!

 

I need to talk to Stan chart and tell them RWS offering better rates.

 

 

humourously good point