Arrest of Macau's 'junket mogul' rattles the world's largest gambling hub
$5,000 Welcome Bonus
Alvin Chau, the CEO of Suncity Group Holdings Ltd, was arrested on Sunday by Macau authorities over alleged links to cross-border gambling. A warrant for his arrest has also been issued in China. SunCity is one of Macao's biggest junket operators.
Alvin Chau, the CEO of Suncity Group Holdings Ltd, was arrested on Sunday by Macau authorities over alleged links to cross-border gambling. Sun City Group will close all of its VIP gaming rooms in Macao casinos as of Dec. 1 and cease salary payments for at least one third of Macaese staff. China ruled in July last year that cross border fund flows due to gambling were a national security risk. Some overseas casinos and online gambling websites primarily target mainland clients. China's official said some overseas casino and website mainly target Chinese clients, harming China’s economic security.
Chau's junket operations account for roughly one quarter of Macau gaming revenues. Macao authorities accused Chau and 10 others of using the former Portuguese colony as a base for an illegal "live web betting platform" in the Philippines. Suncity Group, which owns the junkets, said Chau intended to resign. The stock plunged 48% on Tuesday to a record low. Maca-listed units of U.S. casino operators have plunged in past two days. MGM China shares fell 15%, Wynn Macaus tumbled 11%, Sands China fell 9%.
