Operators’ stocks plummet amid high-profile arrests in Macau
MGM, Wynn, and Sands have all seen their share prices affected by the crackdown on cross-border gambling.
Share prices of Macau’s largest operators have fallen dramatically after a series of high-profile arrests connected to cross-border gambling. Alvin Chau, Suncity Group Holdings Chairman, is reportedly among the 11 people taken into custody.
A number of operators that have long-standing connections to the US market have seen their shares affected. Specifically, MGM China shares fell by 11%, while Wynn Macau and Sands China stocks fell by 9% and 6% respectively.
The Macau market has been volatile for some time, and as authorities commit to a hard-line stance against illegal gaming a temporary loss of business could evolve into more serious regulatory changes.
The highest-profile reported arrest is, as previously mentioned, Alvin Chau of Suncity Group Holdings. Suncity is Macau’s largest junket operator, junkets offer paid trips to VIP casino patrons and are also reportedly known to offer debt repayment services.
As reported by the Financial Times the arrest warrant issued by the former Portuguese colony read that Chau is accused of “severely damaging the social order of the country” and operating a cross-border gambling syndicate.
Carlos Lobo, a Macau-based gaming consultant, said to Reuters: “Suncity accounts for over 50% of junket revenue in Macau, which accounts for roughly 50% of gaming revenues, so Suncity accounts for 25% of gaming revenues.
“The impact on the gambling industry is huge … But (Suncity) is no longer too big to fail, the system will not collapse.”
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