Stocks in Macau Legend sank 19.3 percent in trading Monday after the arrest of CEO and co-chairman Levo Chan at the weekend on charges of running an illegal gambling syndicate, under the table betting and money laundering.
The company said in a statement that Chan had resigned from his positions with the group to avoid becoming a distraction. It also stressed in a separate filing that it was business as usual for the company, which operates Macau’s Fisherman’s Wharf and the Savan Legend in Laos.
It said Chan’s arrest related to his own personal affairs and it doesn’t expect any material adverse impact to operations. Chan is head of the Tak Chun group, the second-largest of Macau’s junkets.
Shares in the operator closed at $0.46, after falling as low as $0.40 in earlier trading, marking a record low.
Macau’s Judicial Police said on Sunday that they had arrested Chan, as well as Billy Choi, CEO of Ying Hai Group. The police said the arrests were related to the earlier detention of Suncity CEO Alvin Chau, who was arrested at the end of November.
According to local media, the two suspects were transferred to the Public Prosecutions Office and then placed under pre-trial detention at the Coloane prison. Their apartments in Cotai have been raided with the PJ seizing a large number of files, documents, servers, and around HK$4.1 million in cash.
The arrest of Chau last year led to widespread closures of VIP rooms across Macau and to predictions of the end for junket operations.
Many operators have said they are ending their cooperation agreements with the gaming promotors.