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Casino operator Marina Bay Sands (MBS) is suing five of its
high-rollers for a total of S$7.5 million they are said to owe,
reported The Straits Times (ST).
This, reported the broadsheet, is the largest group of gamblers
being hauled to court since its opening last year, and is seen by
analysts to show the casino operator’s seriousness on debt
defaulters.
The five men, consisting two Malaysians, a Chinese national, an
Indonesian and a Singapore-based Japanese, are accused of owing MBS
between S$500,000 and S$2 million each.
ST reported that according to court papers filed against them,
the five were premium players who were members of an exclusive club
for valued patrons known as the Paiza.
The cheques they had initially issued and signed for MBS were
not honoured by the banks they were linked to, the paper
reported.
Malaysian Por Boon Chuan reportedly applied for a S$1 million
credit line and was given S$500,000 in chips in December last year.
During that time, he rolled over his credit line and earned
S$18,012 in commission, which was then used to offset the amount he
owed.
After allegedly failing to return the sum after a 90-day grace
period, he is now being sued for S$518,436, an amount including 12
per cent interest, which kicked in after the grace
period.
Investment company director Chock Kok Sui, also a Malaysian, was
granted S$1 million in chips in June 2010 after applying for a S$5
million credit line. He was later issued another S$900,000, and
after receiving S$44,605 in commission, MBS is now suing him for
S$1.855 million, ST reported.
Macau-based Zhang Dechun received S$2 million in chips after
applying for the same amount during his visit to MBS last November,
reported the broadsheet. From his roll over, he earned S$56,111, so
the casino operator is seeking S$1.943 million from him, the paper
added, citing court documents.
Indonesian Husni Muchtar also allegedly owes MBS S$920,500,
added the broadsheet.
The fifth high-roller, Takami Shinichi, a Japanese who is based
in Singapore, is alleged to have started with a S$200,000 credit
line in June 2010. This was later upped to S$1 million in February
this year. Papers filed against him showed that MBS approved an
increase of Shinichi’s credit line to $2 million in April, and now
is claiming $1,999,324 from him, reported ST.
MBS has declined comment on any of the cases when contacted by
Yahoo! Singapore, saying they are all undergoing investigation.
Shinichi is the only one of the five who are disputing the
casino operator’s suit, however, with his lawyer claiming that
Shinichi did not qualify as a premium player when he was issued
credit last June.
He said that Shinichi lacked the minimum credit balance of
S$100,000 in his deposit account when he first started playing,
which meant that MBS was then considered as a moneylender, under
Singapore’s Moneylenders Act, in releasing more credit to him
later, ST reported.
He argued that since MBS is not a licensed moneylender, the
credit owed to them then cannot be recovered.
Under Singapore’s Casino Control Act, casinos here are allowed
to extend credit only to premium players, defined as those who have
placed at least $100,000 with them, in the form of cash, cheques or
chips.
The amount of credit extended to players is determined by
casinos after consideration of the patron’s ability to repay the
credit, as well as his or her financial standing. This can amount
to as much as S$5 million, and players sign an agreement with the
casino that details repayment time and maximum credit limits, among
other conditions.
Repayment periods vary from a few months to a year, and casinos
typically issue warnings to players who exceed their agreed-upon
time, analysts told ST.
Players who default on their credit repayments are sued only as
a last resort, and a casino has to report an impairment loss should
they fail to pay off their debts on time.
