Macau Legend to challenge Cape Verde’s termination of casino resort concession

Macau Legend Development Limited has announced its intention to contest the Cape Verdean government’s decision to terminate its concession for developing and operating a casino resort in the capital, Praia. The move follows the formal cancellation of agreements between the Cape Verde government and Macau Legend subsidiaries, citing repeated contractual violations by the company.

The Cape Verde government confirmed last week, via its Official Bulletin, the termination of the Establishment Convention and Addendum with Macau Legend entities MLD Cabo Verde Resorts SA and MLD Cabo Verde Entretenimento SA. Officials accused the company of “flagrantly and repeatedly” failing to meet its obligations.

On November 18, Cape Verdean authorities formally reclaimed the unfinished hotel-casino project, including associated developments on Santa Maria islet and the Gamboa waterfront. In a resolution, the Council of Ministers stated that “the State of Cape Verde has no choice but to terminate the contracts.”

In a statement to the Hong Kong Stock Exchange, Macau Legend declared its intent to “vigorously contest” the allegations, adding that it is seeking legal advice in Cape Verde to determine its next steps. The company emphasized that it aims to safeguard the interests of its shareholders.

The dispute centers around a €250 million project agreement signed in 2015 by former Macau Legend chairman David Chow. The development was initially slated to include a casino, hotels, conference facilities, and a marina over 153,000 square meters. Construction commenced with a groundbreaking ceremony in 2016, but progress has stalled in recent years.

Authorities criticized Macau Legend for not resuming construction, negotiating the sale of its shares, or transferring its contractual position, while also accusing the company of breaching gaming regulations by transferring over 20% of its share capital without approval, specifically citing the 2020 sale of a 20.65% stake to Levo Chan, a former junket operator now imprisoned for illegal gambling and money laundering.

The government dismissed Macau Legend’s claim that COVID-19 disruptions were to blame for the project’s delays, noting that the pandemic effectively ended in 2021. “To this day, construction remains halted with no scheduled date for resumption,” the government said.