Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Suncity says Macau gaming rooms shut, CEO resigns after arrest

Stock MarketsDec 02, 2021 01:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A logo of Macau junket operator Suncity Group is seen at a gaming fair in Macau, China November 18, 2015. REUTERS/Bobby Yip/File Photo

By Eduardo Baptista

HONG KONG (Reuters) -Macau's Suncity Group Holdings Ltd said gaming rooms operated by a company owned by its former CEO and chairman, Alvin Chau, have been closed.

Chau, who was arrested with 10 others on Sunday over alleged links to cross-border gambling and money laundering, is also the founder of Macau's biggest junket operator which brings in high rollers to play at casinos.

Suncity Group also confirmed in its statement issued late on Wednesday that Chau had resigned from all positions at the listed company, but did not announce a new CEO or chairman.

In a watershed development for the sector, Macau and mainland Chinese authorities are adopting a zero-tolerance approach to the promotion of gambling in mainland China where it is illegal. In tandem, they are seeking to rein in the flow of Chinese gambling-related funds into Macau and other gaming hubs - outflows that China last year deemed a national security risk.

Chau's junket operations are estimated to have accounted for a quarter of Macau's gambling revenues, and the closure of his gaming rooms is expected to exacerbate pain for casino operators in the world's largest gambling hub that has already been hit hard by the pandemic.

Shares in Wynn Macau (OTC:WYNMF) have plunged 20% since Chau's arrest while Sands China (OTC:SCHYY) and MGM China (OTC:MCHVY) have both slid 15%, though declines logged on Thursday were much milder than earlier in the week.

Suncity Group, which describes itself as a gambling sector investment company with hotel and other retail assets, has sought to draw a distinction between its businesses and Chau's junket operations, but analysts see them as inextricably linked.

"Suncity junket was the cash cow, the money-making entity, that supported financially the rest of the group," said Carlos Lobo, a Macau-based gaming consultant.

He added that the certain demise of Chau's junket operations following his arrest would lead to closures in other areas of the group such as restaurants, bars and hotels.

Suncity Group said in the statement that its travel-related businesses would be "adversely affected" by the crackdown on Chau's junket operations.

Its stock was down 5% in Thursday afternoon trade, off a record low marked earlier in the day, after being suspended on Wednesday. The shares have halved in value this week and are now worth HK$847 million ($110 million).

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 gamblers.

A warrant for Chau's arrest has also been issued by the mainland Chinese city of Wenzhou, accusing him of forming an extensive junket agent network that helps citizens engage in gambling activities and of setting up a company that helps gamblers make cross-border fund transfers.

($1 = 7.7914 Hong Kong dollars)

Suncity says Macau gaming rooms shut, CEO resigns after arrest
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email