Taiwan court rules gambler must repay almost €40 million to Melco Resorts

Jenny Ortiz September 30, 2024

SiGMA news

Taiwan court rules gambler must repay almost €40 million to Melco Resorts

Melco Resorts & Entertainment has triumphed in a debt recovery case in Taiwan, where a former gambler, surnamed Koo, was ordered to repay HKD320.5 million (€36.9 million) plus interest.

According to a report of Inside Asian Gaming, the court ruled in favour of the Macau-based gaming giant after a protracted legal battle over an unpaid gambling debt. The case revolved around a loan agreement Koo had entered with one of Melco’s casinos in 2019, which he failed to settle.

The credit line agreement

In 2019, Koo applied for a HKD100 million (€11.5 million) credit line from Melco, which was later increased to HKD300 million (€34.5 million). On 17 May 2020, he withdrew this credit in the form of chips, using the funds to gamble at the casino. Despite the terms of the loan agreement, Koo did not repay the debt. The agreement stipulated that he was to pay interest on any overdue amounts at three times the legal rate of 9.75 percent in Macau. By April 2021, the outstanding debt, including interest, had reached HKD320.5 million.

Legal arguments and defence

Koo’s defence argued that since Melco provided chips rather than cash, the loan did not fulfil the legal requirements for a money borrowing transaction. Furthermore, Koo’s lawyer claimed that the video footage presented by Melco, although showing Koo gambling, did not sufficiently prove the time and location of his activities. The defence also attempted to question the legitimacy of the loan based on these technicalities.

After reviewing the loan agreement and considering witness testimonies, the judge rejected Koo’s defence. The court determined that Koo, as an adult with sound judgement, should have been aware of the gambling laws and regulations in Macau. Moreover, the judge ruled that the loan was valid under Macau law and that Koo was obliged to repay both the principal sum and the accrued interest at 29.25 percent.