{"id":18256,"date":"2024-11-29T11:17:31","date_gmt":"2024-11-29T08:17:31","guid":{"rendered":"https:\/\/igamingafrika.com\/?p=18256"},"modified":"2024-11-29T11:17:31","modified_gmt":"2024-11-29T08:17:31","slug":"macau-legend-challenges-governments-termination-of-casino-project-in-cape-verde","status":"publish","type":"post","link":"https:\/\/igamingeuropa.com\/index.php\/2024\/11\/29\/macau-legend-challenges-governments-termination-of-casino-project-in-cape-verde\/","title":{"rendered":"Macau Legend Challenges Government\u2019s Termination of Casino Project in Cape Verde"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Macau Legend Development Ltd, a significant entity in the international casino and hospitality arena, is preparing to contest the Cape Verde government\u2019s decision to terminate its concession for a key casino resort in Praia. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Hong Kong-listed firm is actively pursuing legal representation in Cape Verde to robustly defend the rights and interests of its stakeholders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Details of the Concession Termination:<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In a recent announcement in the Official Bulletin of Cape Verde, the government declared the cessation of its Establishment Convention and its Addendum with Macau Legend\u2019s subsidiaries, MLD Cape Verde Resorts SA and MLD Cape Verde Entretenimento SA. This action comes as a result of allegations that Macau Legend failed to meet its development and financial commitments concerning the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cessation was prompted by specific claims of agreement violations, including the unauthorized transfer of over 20% of its share capital to Levo Chan, the former CEO of Tak Chun Group, in 2020\u2014a transaction that lacked approval from Cape Verdean authorities. Additionally, the legal issues surrounding Chan, including his conviction for illegal gambling and money laundering, have adversely affected the project\u2019s reputation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also: <a href=\"https:\/\/igamingafrika.com\/egt-digitals-x-nave-named-online-platform-of-the-year-at-the-golden-spades-awards-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">EGT Digital\u2019s X-Nave named \u201cOnline Platform of the Year\u201d at the Golden Spade\u2019s Awards 2024<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Authorities in Cape Verde have dismissed Macau Legend\u2019s claim that the COVID-19 pandemic impeded the project\u2019s progress. They underscored that, although the pandemic ended in 2021, the anticipated construction work has yet to revive, nor have new timelines been set for the project. Consequently, the government intends to reclaim all lands and assets linked to the project, effectively terminating the \u20ac250 million initiative.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Conversely, Macau Legend insists that the pandemic critically impacted project timelines and contends that the government\u2019s termination of the concession is unjustified. The company has reiterated its intent to vigorously challenge these allegations to safeguard its investments and the interests of its shareholders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Financial Implications and Ongoing Operations:<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As reported by Inside Asian Gaming, Macau Legend stated: \u201cAs a result, the Cape Verde Government is allegedly entitled to exercise the right to terminate the Convention and the Concessions, and to assume control of all assets previously assigned to the subsidiaries, as well as the assets already constructed by the subsidiaries, under the Investment Project. The Company is currently actively seeking legal advice in Cape Verde on the appropriate course of action and intends to vigorously contest these allegations to safeguard the interest of the Company and its shareholders.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The financial implications of this termination are considerable, with assets linked to the Cape Verde project valued at around HK$47 million as of June 30, 2024. The company plans to conduct an impairment assessment to evaluate potential financial repercussions. Despite these hurdles, Macau Legend continues operations at its principal assets in Macau, including the Macau Fisherman\u2019s Wharf and the Legend Palace Casino, in collaboration with SJM Resorts S.A.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The concession termination in Cape Verde further compounds uncertainties regarding Macau Legend\u2019s future operations, particularly as it reported a sizable net loss of HK$109.9 million (US$14.1 million) in the first half of 2024. However, the firm did report a 16.5% rise in revenue, highlighting some resilience in its business sectors. <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-white-color\">Macau Legend Casino Cape Verde<\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Macau Legend Development Ltd, a significant entity in the international casino and hospitality arena, is preparing to contest the Cape Verde government\u2019s decision to terminate its concession for a key casino resort in Praia. The Hong Kong-listed firm is actively pursuing legal representation in Cape Verde to robustly defend the rights and interests of its &hellip;<\/p>\n","protected":false},"author":3,"featured_media":18257,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[814,25,198],"tags":[815],"class_list":["post-18256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cape-verde","category-news","category-west-africa-gambling","tag-macau-legend"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Macau Legend Challenges Government\u2019s Termination of Casino Project in Cape Verde<\/title>\n<meta name=\"description\" content=\"Macau Legend Development Ltd is preparing to contest the Cape Verde government\u2019s decision to terminate its concession for a key casino resort in Praia.\" 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