Taiwan Court Confirms Melco Resorts' $41M Gaming Debt Claim

The Taiwan High Court has recently reinforced a previous decision mandating that a Taiwanese high roller repay Melco Resorts & Entertainment Ltd an enormous sum linked to gaming debts. This conclusion was reached on Tuesday, upholding a ruling from a lower court ordering the individual to return approximately HKD320.47 million (US$40.9 million). The debt in question included an annual default interest set at a staggering 29.25 percent, originating from a debt accrued in 2020 at one of Macau's gambling establishments, as detailed in Taiwan’s local media sources.

According to reports, the casino location involved in this case was not explicitly mentioned. The individual involved, identified only as Mr. Ku, had been a frequent and esteemed patron known as a "VVIP" at Melco Resorts since 2018, with a consistent record of timely debt repayments, as cited in the court documents. This history likely played a role in prior credit extension agreements between the two parties.

Details of the Gaming Debt

The issue stemmed from events on May 17, 2020, when Melco Resorts asserted that Mr. Ku received non-negotiable chips amounting to HKD300 million. This figure aligned with his approved credit threshold. Unfortunately, Mr. Ku subsequently lost the entire amount during his gambling endeavors. At the moment the chips were issued, Melco had acceded to Mr. Ku's request to delay signing a credit slip due to his superstitions that such an action could harm his gambling fortune.

Melco Resorts acknowledged his reputation for creditworthiness and trustworthiness as factors in their agreement. Furthermore, Melco Resorts recognized that Mr. Ku was entitled to receive commissions and rebates totaling HKD10.43 million.

Consequently, after accounting for these deductions, his unresolved principal was reduced to about HKD289.57 million. Under the stipulated agreement between both parties, any overdue funds would incur a default interest rate of three times Macau’s standard rate, leading to a percentage of 29.25.

By April 9, 2021, Mr. Ku's resulting debt, inclusive of interest, had surged to nearly HKD320.47 million. This figure would continue to grow with annual interest from April 10, 2021, until the sum was fully settled.

Court's Rejection of Disputes and Final Judgment

Mr. Ku had contested the authenticity of the documents presented by Melco Resorts, asserting that they might have been tampered with, while also raising doubts about the integrity of the casino footage. However, the High Court meticulously reviewed the video evidence, witness testimonies, and relevant immigration logs, affirming that Mr. Ku indeed received the chips and gambled at the Macau casino on the date in question.

A notable argument from Mr. Ku was his claim that chips did not equate to a cash loan. The court dismissed this reasoning, asserting that the agreement between both parties involved Mr. Ku withdrawing cash credit which he then exchanged for an equivalent value in chips. Furthermore, the court found that Melco Resorts operated within Macau’s legal framework regarding gaming credit.

In a comprehensive evaluation, the court noted that despite the credit arrangements referencing Macau’s jurisdiction, they were not exclusively bound to it—thus permitting Melco Resorts to pursue their claims within Taiwan’s legal system.

Both parties concurred that their credit dealings would be subject to Macau’s legislative oversight. The ruling underscored that Mr. Ku was an informed adult who lawfully obtained gaming credit in Macau and, given its legality there, his debt was considered valid under the framework despite conflicting with Taiwan’s norms on public conduct. This judgment is still subject to appeal, providing Mr. Ku with an opportunity to challenge the court's decision further if he chooses to proceed.

Source: Taiwan court upholds ruling on Melco Resorts' US$41mln gaming debt claim, GGRAsia, October 27, 2026.

Posted by Wizard
Oct 27 2026