Macau mogul’s downfall is good news for casinos

LET group

01/12/2021 03:03

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Katrina Hamlin
    HONG KONG, Dec 1 (Reuters Breakingviews) - China’s
investigation into an illegal gambling group casts a shadow over
Alvin Chau’s Suncity, which once helped high rollers fund as
much as $8 bln in wagers each year in the betting hub. But the
VIP market is a drag on earnings. Ending it can help strengthen
recovering casinos.
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    CONTEXT NEWS
    - Macau police said on Nov. 28 they had arrested 11 people
in an investigation into an illegal gambling and
money-laundering syndicate.
    - Authorities in the eastern Chinese city of Wenzhou said on
Nov. 26 that an investigation had found businessman Alvin Chau
formed a junket agent network on the mainland to help citizens
engage in offshore and cross-border gambling activities. Junkets
are organisations that orchestrate travel and credit for
big-spending gamblers visiting Asian casinos.
    - Hong Kong-listed shares for Macau casino operators
including Wynn Macau and MGM China fell 7.1% on average on Nov.
29, wiping $3.6 billion off their combined market
capitalisation. 
    - Shares in Suncity Group and Summit Ascent, both controlled
by Chau, fell by 48% and 63% respectively on Nov. 30. Trading in
the stocks was suspended on Nov. 29.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: Macau's mass market makes a greater contribution than
its VIPs    https://tmsnrt.rs/3Ea3Hek
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Antony Currie and Thomas Shum)
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