Macau police probe suspected fraud at junket as investors protest

China Star Entertainment

21/09/2015 10:07

MACAU, Sept 21 (Reuters) - Macau police are investigating 
alleged fraud involving one of the gambling hub's biggest junket 
operators after the company said an ex-employee had stolen money 
from investors, the latest incident to hit an industry reeling 
from a slump in revenues. 
    The crime, which involved junket operator Dore Holdings, has 
triggered daily protests by its investors and calls by lawmakers 
for increased scrutiny of the opaque junket system amid a wider 
crackdown on corruption and illicit transactions. 
    The junket system lets companies or individuals loan credit 
to gamblers, mainly VIPs, on behalf of Macau's casinos. 
    These VIP gamblers accounted for over 70 percent of monthly 
gaming revenues at the start of 2014, but this amount has now 
slipped to around half, with several junket businesses shutting 
down. Analysts estimate the number of junket tables has fallen 
by up to 20 percent since the start of this year. 
    Dore Holdings operates three rooms for VIP gamblers in the 
Wynn Macau  1128.HK  casino. The company has said it was a 
victim of fraud, after the former employee raised funds from 
investors in its name, and then stole the money. 
    Dore has refused to pay back investors and frozen its 
accounts to prevent them from taking funds out of the company. 
    Police have said that based on investors' claims, the fraud 
amounted to at least HK$300 million ($39 million). A spokesman 
said the investigation was ongoing. 
    Macau's junket operators and VIP gambling industry have come 
under increased scrutiny from authorities due to Chinese 
President Xi Jinping's anti-corruption campaign which has 
targeted the flight of illicit capital from the country. 
    Gambling revenue in Macau has plummeted for the past year 
and the junket business, which relies on middle men to bring in 
gamblers from mainland China, extending them credit and 
collecting debts from them, has taken an extra beating. 
    Macau lawmaker Jose Coutinho told Reuters the crimes related 
to junkets were damaging Macau's reputation, particularly as 
other Asian casino hubs pull out all the stops to attract 
wealthy gamblers. 
    "The government needs to oversee the system better, there is 
a lack of supervision on the issue," he told Reuters. 
    The Macau authorities have vowed to improve the relevant 
laws and regulations, without giving details. 
  ($1 = 7.7500 Hong Kong dollars) 
 
 (Reporting by Farah Master; Editing by Miral Fahmy) 
 ((farah.master@thomsonreuters.com; +852 28431631 , +852 9631 
8262; Reuters Messaging: 
farah.master.thomsonreuters@thomsonreuters.net)) 
 
Keywords: MACAU CRIME/GAMBLING