Good morning. Things are not looking great for Macau’s junket and VIP sector. As of today, Suncity Group has closed all of its VIP rooms ahead of a planned restructuring of the business, following the weekend arrest of Alvin Chau and his associates. Reports indicate the probe into Suncity boss is centered on the establishment of an overseas gambling platform that was being used to target patrons from Mainland China.
What you need to know
- Nagacorp and Wynn Macau are likely to see the most impact from any further reduction in VIP volumes, though for most companies around Asia the risk to EBITDA is not high: MS
- The probe into Suncity Group boss Alvin Chau and 10 others centres on the establishment of an online gambling platform overseas that was being used to target Mainland patrons.
- Suncity Group will close all of its Macau VIP rooms from midnight on Dec. 1st ahead of a restructuring of its business.
- Melco Resorts says that the recent developments concerning Macau’s junket and VIP space is a signal of increased risks for operators, whilst Covid-19 continues to have a material effect on its operations.
On the radar
- Duterte’s preferred candidate withdraws from Presidential race.
- RGB International recorded a narrowed loss of US$1.3 million in 3Q21.
- Suncity, Summit Ascent shares plummet, other operators also weaker.
- IPI asset auction postponed for 30 days to give time for legal settlement.
- Crown Resorts has confirmed Ziggy Switkowski as its new chairman.
What the papers say
- Hann Casino Resort in Philippines Clark Freeport Zone to open on Dec. 15th.
- Carlos Lobo says it will be difficult for Suncity to renew its license.
- Macau is likely to have 4,200 surveillance cameras across the city by 2028.
The pandemic has created a perfect environment for cybercriminals to flourish, with more employees forced to work from remote unsecured networks access points, cybercriminals getting smarter, and more accessible and flexible payment channels for them to be compensated than ever before. Last week, the World Economic Forum pointed to cyber attacks as one of the biggest risks facing businesses today, with as many as six attacks taking place for every minute in 2021.
- Galaxy Entertainment unveils International Marathon Carnival.
- MGM China teams with Macau commerce body to help SMEs enter Mainland China.
- Sands China agrees two initiatives with Macau’s Education and Youth Bureau.
- AGEM, AGA Golf Classic raises $104k for responsible gambling research.
- Habanero gets the steins ready with Prost!
- WGA welcomes Federal Group as new partner.