Suncity Group denies online gaming, proxy betting in China

Junket and casino operator Suncity Group has denied accusations that it is running online gaming and proxy betting in China through offshore online casinos.

The accusations were made by China’s state-run press. 

“Our company’s VIP gaming promotion business is legal, and never owns any gaming venues or gaming tables. Our company also does not operate any online gaming business,” it said in a statement.

According to a note from Bernstein, the article gave an overview of how Suncity signs up Chinese players for online gaming/proxy betting when they come through Macau casinos. 

Underground banks are also involved in this process to move capital out of China, as play can be settled in RMB.

Suncity has since released a statement (in Chinese) that denied the allegations, according to Bernstein. 

Suncity is the largest junket operator in Macau, and over the last few years, has been increasing its involvement in the Asia IR space. It is involved in developing a casino resort in Vietnam and has taken a significant stake in Russian casino operator Summit Ascent Holdings. 

“From our recollection, this is the first time official Chinese press has linked a junket with online gaming activity,” said Bernstein.

“It is too early to tell what ramification this article brings (if any). The article itself could be a warning message for Suncity and maybe other online gaming/proxy betting operators to tone down excessive offshore play. Junkets may face greater scrutiny on their offshore businesses, some gameplay may gravitate back to Macau as players may retreat from online play and junkets may face greater scrutiny in Macau on how they interact with players (with respect to signing them up for online accounts in Macau),” it added. 

SHARE
Previous articleIPI controlling shareholder reduces stake in the casino company
Next articleDelta Corp revenue flattish in 19Q2

Related Articles

Macau operator stocks gain: Suncity surges

Shares in Macau's casino operators all rose on Thursday following an upbeat earnings announcement from Las Vegas Sands, while stock in Suncity Holdings outpaced, surging almost 23 percent on the day.

Suncity gets two-year extension to bond maturity

Suncity Group said it has secured a two-year extension to the conversion date of outstanding convertible bonds, which are mostly held by a company controlled by Chairman Alvin Chau.

Suncity completes acquisition of nearly 70% of Summit Ascent

Suncity has now increased its stake in Summit Ascent from approximately 24.7 percent before the recent rights issue to approximately 69.7 percent, taking a controlling stake in the operator of Tigre de Cristal in the Russian Far East.

China’s move to criminalize gambling bad news for junkets

China’s move to criminalize efforts to lure Chinese nationals overseas to gamble spells more bad news for Macau's junket sector, which was already facing tough trading conditions. 

Macau government taxes from junkets fall in 2019

The Macau government has received MOP299 million (US$48.8 million) in taxes on commissions paid by casinos to junket operators in 2019, a 24 per cent year-on-year drop, according to the last year’s budget execution report.
Suncity wins three investor relations awards

Suncity wins three investor relations awards

Suncity Group Holdings has been given three investor relations awards from the Hong Kong Investor Relations Association.

Suncity opens office in Wakayama

The Suncity Group has again signaled its seriousness for bidding to become Wakayama’s IR development partner by opening an office in the city. Located at Nankai Electric Railway Company’s Wakayama Daigaku-mae Station in the northern part of the city, the 460 square meter office will be open to the public from Friday, and it includes […]
Suncity sponsors Wakayama professional basketball team

Suncity sponsors Wakayama professional basketball team

IR development in Japan may currently be stalled, but the Suncity Group is moving forward with its public relations campaign in Wakayama by sponsoring the local professional basketball team. Suncity has become an official sponsor of the Wakayama Trians, and is coordinating the release of a series of physical training videos together with the team. […]

Suncity revenue down 70 percent in H1

Suncity Group Holdings has reported 2020 H1 results showing RMB93.7 million (US$14 million) in total revenues, a figure which is down 70 percent year-on-year. The loss attributable to owners of the company was RMB118.6 million. As of June 30, the firm held cash in the amount of RMB1.66 billion. Turning to various development projects, he […]

Suncity expects H1 losses of US$15.1 million

Suncity Group has issued a profit warning noting that, based on its preliminary review, the group is expecting to report about RMB108 million (US$15.1 million) in losses for the January-June 2020 period. The statement noted that “due to the outbreak of Covid-19, there has been a significant impact on the group’s travel and tourism related […]