Casino operator not liable for junket deposit loss if not gaming related, court rules (JUNKET)

 aug26

Casino operator not liable for junket deposit loss if not gaming related, court rules

By Aries Un

An unnamed individual now faces the prospect of losing over HK$43.8 million (MOP45.15 million / US$5.58 million) after allegedly treating a Macau casino as an investment bank.

According to a Monday verdict from the city’s top court, the plaintiff was enticed by a generous package of perks offered by a manager of a junket business to deposit money with his company.

The benefits included free transport, accommodation, meals, and a monthly interest rate of 1.2 percent.

In July 2014, the complainant issued a cheque with a face value of HK$10 million, which was subsequently cashed by the casino operator in return for gambling chips.

Further deposits were made at least three times, in September and December 2014, and April 2015, with these three payments totalling HK$30 million.

The plaintiff expected monthly returns at a rate of 1.2 percent, fully aware that the money would not be used for gambling purposes.

However, in October 2015, the individual stopped receiving interest payments and lost access to his deposit account.

In December 2016, the junket business manager ignored the plaintiff’s request to return as much as HK$37.2 million.

This move led the complainant to file a lawsuit at the Court of First Instance in 2020, demanding over HK$43.8 million from the casino operator.

His legal challenge proved futile, even after an appeal to the Court of Second Instance.

In this case, according to the judgement from the Court of Final Appeal, the casino operator allowed junket promoters to accept deposits from gamblers and convert them into chips, with a view to injecting liquidity into VIP rooms and supporting its own business.

The casino operator, as the top court noted, had no direct contact with the plaintiff.

Furthermore, the operator was not liable for the plaintiff’s reported loss, as it had never acted in a way that could justify the complainant’s confidence in the investment.

Finally, for any joint liability to apply in favour of the plaintiff, these deposits would have needed to be used for gambling purposes or derived from winnings.

https://macaubusiness.com/casino-operator-not-liable-for-junket-deposit-loss-if-not-gaming-related-court-rules/

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