SINGAPORE - In what is said to be one of the biggest losses yet at
a Singapore casino, a local businessman lost $26.3 million over
three days of gambling in June. This included a staggering $18
million that he burned in one day alone, playing baccarat - a card
game - at $400,000 a hand.
According to documents that Today has obtained, the businessman's
tale of woe began in March, just weeks after Resorts World Sentosa
(RWS) opened, when he was granted a credit line of $500,000 by the
casino.
The Singaporean, who is consulting a top local law firm about
possible legal action against the casino, claimed that the casino
at no time performed any background checks on his credit-worthiness
or his financial capacity. He had simply filled in an application
form, deposited $100,000 and handed over a signed blank cheque, he
claimed.
Subsequently, in April, the casino increased his credit line to $2
million, he told his lawyers. In his 50s, the businessman is a
managing director of a multi-million-dollar company.
Over the weeks, he reportedly won or lost several hundred thousand
dollars each time he visited the casino, with his losses running as
high as $6 million in the course of a single session. To draw on
his credit line, he said, he signed a form and was given the
requisite amount of chips.
In early June, he made his biggest loss of $18 million yet in one
session. Two days later, he went back to the casino and recouped
some $3.7 million - but then two days after, he lost a further $11
million.
At one point during this third session when his losses crossed the
$4-million mark, so the businessman claimed, his girlfriend started
crying and pleaded with one of RWS' senior officers to stop
providing him with more chips on credit.
The same officer, he claimed, had repeatedly assured him over the
course of the gambling sessions that the casino was prepared to
extend him further credit, even though his limit had long since
been exceeded.
Of his $26.3 million loss, the businessman repaid $10 million
almost immediately.
The businessman claims to have then met with RWS chief executive
Tan Yee Teck, who offered him a "rolling figure" - which amounts to
a discount - of $3.3 million.
According to the legal documents, dated July 22, the gambler owed
RWS some $13 million at that point in time. It is unknown if the
debt has since been settled.
When contacted, an RWS spokesperson said the group does not comment
on its customers.
The businessman's lawyers have advised him to explore if an
amicable resolution can be reached with the casino. But they also
think he may have a case of negligence, breach of contract or
breach of statutory duty against the casino.
Under the Casino Control (Credit) Regulations, an operator who
enters into a credit agreement with a patron should, apart from
specifying a credit limit, develop and implement criteria to assess
the patron's creditworthiness. The operator must also have approval
procedures for any increase in the credit limit.
In the lawyers' view, by substantially exceeding their client's
earlier limits - by more than 60 times the original limit of
$500,000, and 15 times the April limit of $2 million within a few
hours to enable him to continue gambling "RWS had encouraged
irresponsible gambling and had breached the duty of care owed to"
the businessman.
RWS' conduct of continuing to pile on credit effectively rendered
the concept of a credit limit meaningless, the lawyers argued. This
was more so as the person in question was not in the proper frame
of mind to decide on the increases, they said.
In other countries, there have been several instances of patrons
suing casinos for their losses, cases which the courts have
dismissed. Courts in other jurisdictions have noted among other
things, that the casino was not bound to protect a gambler from his
desire to wager his wealth.
Despite this, the Senior Counsel from the local law firm
recommended writing to RWS. "In the letter, the issues concerning
RWS' failure to promote responsible gambling ... can be raised.
Hopefully, this may encourage RWS to offer a haircut that would be
acceptable to you ..." he wrote.
Genting Singapore's turned in a sterling net profit of $397 million
for the quarter ended June 30, compared to a loss of $50.7 million
a year ago. Revenues rose to $979 million from $120 million a year
ago.
According to DMG Research, at the current rate, Singapore is
already the second largest casino market in Asia after Macau, and
could overtake the Las Vegas strip as the second largest casino
market in the world after Macau in the next two to three years. The
firm estimates that the two casinos here rake in over $16 million a
day.
Source: http://www.todayonline.com/Hotnews/EDC100818-0000040/Local-businessman-loses-$26m-at-RWS-casino-over-3-days
