THE M3: JACOBS SUIT; SINGAPORE LOCALS 30% CAP

The Macau Metro Monitor, June 10, 2011

JACOBS' DEFAMATION CLAIM AGAINST ADELSON DISMISSED macaubusiness.com

Clark County District Court Judge Elizabeth Gonzalez has dismissed the defamation claim filed by former Sands China CEO Steven Jacobs against Sands China and chairman Adelson. However, she declined to immediately dismiss a breach of contract claim against Sands China and will consider that issue later on a motion for summary judgment.  That claim involves stock options Jacobs says he's been wrongly deprived of.

Regarding the defamation claim, Judge Gonzalez concluded that Adelson was protected by the litigation privilege when he told media that Jacobs' allegations were outright lies and fabrications.  Jacobs’ lawyers have already announced they will appeal the decision.

MBS DOES A BALANCING ACT WITH LOCAL GAMBLERS Business Times

LVS COO Michael Leven said in an interview, "We are basically told that as long as only about 30% of the people coming in are Singaporean, then it shouldn't be a problem. If the amount of Singaporean attendance gets much higher than that, there may be some cause for concern.  To this day, only about 3% of Singapore's population has ever played in a casino."  But a spokesman with the Ministry of Community Development did not confirm the 30% cap, saying only that the IR operators have been told very clearly that the casinos are tourist products and they are not to target the domestic market.

Leven added, "We have to have some local play in order to be consistent when we don't have conventions and we don't have tourists. Otherwise, you've got an awful lot of overhead sitting there not generating any revenue....In the early days, Genting won both the market share game in VIP gaming as well as mass market. We are now winning the mass market game and they continue to lead in the VIP game for a variety of reasons....On the VIP end, they're more aggressive than we've been and doing a better job. But they had a headstart on us because of all their contacts in Malaysia. And we'll eventually catch up and probably that market will be split, but I think we'll continue to dominate the mass market."