Connect with us

Hi, what are you looking for?

News

Suncity shuts VIP gaming rooms in Macau after CEO’s arrest -sources

HONG KONG – Embattled gambling group Suncity Group Holdings has closed all of its VIP gaming rooms in Macau, the world’s largest gambling hub, after the company’s CEO was arrested, two sources with direct knowledge of the situation told Reuters.

The shutting of the company’s VIP rooms will result in a cut of around a third of its Macau headcount, according to one of the sources, a senior casino executive who declined to be identified as the closure has not been publicly announced.

Suncity Group, whose shares were suspended from trade on Wednesday, did not immediately respond to a request for comment.

The news comes amid a broader investigation into Suncity, which has sent Macau-listed casino stocks tumbling for a third day in a row. Shares in Wynn Macau Ltd, which analysts say is the casino operator most reliant on Suncity’s gaming rooms, slid 7% on Wednesday, bringing this week’s losses to 18%.

Alvin Chau, the CEO of the company as well as the founder of Macau’s biggest junket operator which brings in high rollers to play at casinos, was arrested on Sunday over alleged links to cross-border gambling.

Macau authorities have accused Chau and 10 others of using the former Portuguese colony as a base for an illegal “live web betting platform” in the Philippines that attracted mainland Chinese.

A warrant for his arrest was also issued on Friday by the mainland Chinese city of Wenzhou.

“The writing was on the wall already. But nothing was done in Macau until the Wenzhou police talked about it,” the executive said.

While Chau’s junket operations, also called Suncity, are not part of the listed Suncity Group, they have previously been singled out by mainland China’s state-run media, which said they harmed China’s social order.

A 2019 article by the Economic Information Daily, a unit of China’s state news agency Xinhua, alleged that the annual amount of online betting on websites run by Suncity was more than 1 trillion yuan ($155 billion). Suncity has also not responded to a request for comment on that estimate.

One of the casino executives told Reuters that Suncity operated VIP rooms in properties owned by all six of Macau’s licensed casino operators – Wynn Macau, Sands China, MGM China, SJM Holdings, Melco Resorts and Galaxy Entertainment.

In 2019, Suncity operated up to 17 VIP clubs in Macau and accounted for nearly half of the gambling hub’s VIP market, the executive added.

The six licensed casino operators have not responded to Reuters requests for comment.

Suncity Group said this week that Chau, who is both CEO and chairman, intended to resign. Reuters efforts to contact Chau or his lawyer have been unsuccessful.

Suncity Group’s stock plunged 48% on Tuesday to a record low after being suspended from trade a day earlier, valuing it at HK$880 million ($113 million). Suncity has also said its operations would not be impacted in the event that it ceased to have Chau’s support. – Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS BEIJING — China posted another record high coronavirus disease 2019 (COVID-19) infections on Monday, after an extraordinary weekend of protests across the country...

News

The Makati skyline is seen in the background in this file photo. — PHILIPPINE STAR/ MICHAEL VARCAS MANILA — Philippine economic growth may ease...

News

Rendering of China’s Tiangong Space Station. — WIKIMEDIA COMMONS SYDNEY — Rapid advancements in China’s military capabilities pose increasing risks to American supremacy in...

News

REUTERS SYDNEY — Australia lowered its terrorism threat level on Monday to “possible” from “probable” for the first time in eight years, citing a...

News

Mexican President Andres Manuel Lopez Obrador. — Andres Manuel Lopez Obrador/Facebook MEXICO CITY — Tens of thousands marched with Mexican President Andres Manuel Lopez...

News

PRAVEEN KUMAR NANDAGIRI/UNSPLASH OTTAWA — Canada launched its long-awaited Indo-Pacific strategy on Sunday, outlining C$2.3 billion ($1.7 billion) in spending to boost military and...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.