Macau Legend to Fight Cape Verde Over Seized Casino Site
Macau-based gaming operator Macau Legend Development (MLD) has vowed to take legal action against the Cape Verdean government following the state’s seizure of an unfinished multi-million dollar hotel-casino project in the capital city of Praia.
The Cape Verdean Council of Ministers formalized the repossession on November 18, reclaiming the Santa Maria islet and the Gamboa seafront properties. Government officials characterized the move as a last resort, citing “flagrant and repeated” violations of contractual obligations by the developer.
A Vision Stalled
The ambitious project began in 2015 when businessman David Chow signed a deal to invest €250 million into the island nation’s tourism infrastructure. However, nearly a decade later, the 160,000-square-meter site remains a skeleton of its former promise. While an eight-story building stands on the property and an asphalt bridge connects the mainland to the excavated islet, the site has stood largely abandoned, manned only by security guards.
Although the project was initially slated for completion in 2021, work ground to a halt. The Cape Verdean government claims it offered Macau Legend numerous opportunities to resume construction, sell its shares, or transfer the project to a new investor. “No alternatives were presented,” the executive branch stated.
Legal and Financial Turmoil
Beyond construction delays, Cape Verde officials cited several legal and financial breaches as grounds for termination. These include the unauthorized transfer of more than 20% of the company’s share capital and the “economic and financial situation of the parent company.”
The government also pointed to criminal convictions in Macau involving MLD shareholders and directors as a factor in the decision. Despite a general recovery in the Macau gaming market, MLD reported a loss of 109.9 million Hong Kong dollars (€13.5 million) in the first half of 2024.
Macau Legend Vows to Fight
In a statement to the Hong Kong Stock Exchange, Macau Legend announced it is seeking legal counsel in Cape Verde to challenge the government’s allegations. “The company intends to vigorously contest these allegations to safeguard the interest of the company and its shareholders,” the operator stated.
Despite the high-profile seizure, MLD leadership downplayed the financial impact, noting that the Cape Verde assets were valued at approximately 47 million Hong Kong dollars (€5.76 million) as of June. This legal battle follows a 2023 statement from MLD Chairman and CEO Li Chu Kwan, who previously indicated that the group intended to exit its projects in both Cape Verde and Cambodia by 2025.
Image: Pexels – Ahmet AZAKLI
