Taiwan High Court Upholds Melco’s $40.7 Million Gaming Debt

The Taiwan High Court has upheld a ruling requiring a Taiwanese high roller to repay Melco Resorts & Entertainment Ltd approximately HKD320.47 million ($40.7 million) plus default interest. This judgment allows Melco to pursue debt recovery in Taiwan for credit extended in Macau.

What Happened

The Taiwan High Court affirmed a lower court’s decision that a Taiwanese individual, identified as “Ku,” must repay Melco Resorts & Entertainment Ltd a sum of approximately HKD320.47 million ($40.7 million), along with default interest, according to iGaming Today. This ruling enables Melco to seek repayment in Taiwan for gaming credit previously issued in Macau.

Ku, a VVIP customer of Melco Resorts, reportedly received non-redeemable chips valued at approximately $38 million as a line of credit on May 17, 2020. After commissions and rebates of HKD10.43 million ($1.3 million) were deducted from a debt balance of approximately HKD289.57 million ($36 million), Ku reportedly lost the entire amount. A default interest rate of 29.25% per year was applied, increasing the total amount due to HKD320.47 million by April 2021, with interest continuing to accrue until full repayment.

The High Court rejected Ku’s allegations of forged or altered documents and questioned surveillance footage, according to reports. The court reviewed the footage, employee testimony, and immigration records, finding that Ku was in Macau, received the chips, and gambled on the specified date. Furthermore, Ku’s argument that receiving chips instead of cash did not constitute a monetary loan under Taiwanese law was also rejected. The court found that both parties had agreed Macau law would govern their arrangements, and the loan, being legal in Macau and voluntarily received by an adult, should not be voided based on Taiwanese public policy.

Key Details

• The Taiwan High Court upheld a debt claim against a Taiwanese high roller for approximately HKD320.47 million ($40.7 million) plus default interest, enabling Melco Resorts & Entertainment Ltd to seek repayment (iGaming Today).
• The defendant, identified as “Ku,” was a VVIP customer who received $38 million in non-redeemable chips as a line of credit in May 2020 and subsequently lost the full amount (iGaming Today).
• A default interest rate of 29.25% per year was applied, increasing the total debt to HKD320.47 million by April 2021, with interest continuing to accrue until repayment (iGaming Today).
• The court rejected claims of forged documents and incomplete surveillance footage, affirming that the transactions occurred and were legal under Macau law, which the parties had agreed would govern their arrangements (iGaming Today).
• Previous repayments by Ku since 2018 had reportedly facilitated higher credit limits before the disputed debt arose (iGaming Today).

Why It Matters

This ruling by the Taiwan High Court provides a precedent for casino operators seeking to enforce gaming credit agreements across jurisdictions, particularly when credit is extended legally in one territory (Macau) and challenged in another (Taiwan). The decision underscores the importance of contractual agreements on governing law and jurisdiction, affirming that non-exclusive jurisdiction clauses do not necessarily prevent proceedings in alternative forums. It also highlights the courts’ willingness to validate evidence like surveillance footage and employee testimony in debt recovery cases, even when challenged on grounds of authenticity or completeness. The ongoing accrual of default interest at a substantial rate further emphasizes the financial implications for individuals who default on high-value gaming credit.

What’s Next

The defendant, Ku, retains the option to appeal the High Court’s ruling, according to iGaming Today.