Donaco wins legal round against former Thai casino vendors

Casino operator Donaco International has won a legal round against the former Thai vendors of its flagship Star Vegas casino in Poipet, Cambodia.

On Wednesday, the Australian-listed Donaco announced that an Appeal Court in Cambodia’s capital Phnom Penh had rejected the Thai vendors’ bid to seize various Star Vegas assets, including the casino’s Cambodian bank account, as security against a debt the vendors claim to be owed.

Donaco purchased Star Vegas from the Thai vendors in 2015 and hired them to manage gaming operations for the next two years. In 2016, the vendors built an adjoining gaming hall, Star Paradise, at which Donaco was supposed to manage gaming operations for a monthly fee of around $144k.

However, once their initial Star Paradise deal with Donaco expired, the vendors took over management of the venue’s gaming operations themselves. Donaco accused the vendors of violating a non-compete clause, and things were officially off to the races.