Suncity Closes Effective Immediately
The junket company Suncity Gaming Promotion Company Limited has closed his business effective December 10. This was by no means unfounded. Suncity, or the head of this group, has recently been under strong criticism. He was also arrested as part of an investigation. This may have been the reason why all shops are now closed.
Suncity boss arrested for illegal gambling
Alvin Chau, the head of Suncity, was only recently identified as the head of a criminal organization. These investigations are by no means new, they have been going on for several years.The background to the investigations was illegal games of chance, which were offered by the gang that has now been arrested. A total of eleven people were arrested as part of the investigation. The near future will show what other criminal activities the arrested persons are involved in.
Because of Chau's arrest, Suncity's first problems immediately arose:Employees were no longer paid and Suncity's continued existence was at stake . Now the time has actually come that the fears of the employees have been fulfilled: Suncity is closed. The arrest of Chaus was not given as a reason to the employees. Rather, the reason given is that numerous casinos have decided to end their cooperation with Suncity.
References are also made to upcoming court proceedings. All of this is cited as the reason whySuncity is immediately incapacitated. Of course, this not only affects the employees, but also subcontractors and, above all, the customers. Another negative blow comes from numerous creditors demanding immediate repayment of the loans granted.
Employees are covered by the employment office
There is positive news in connection with employees. TheEmployment Office of Macau will take care of the outstanding salaries and will of course also try to ensure thatthose affected get a new job. It won't be that easy for Suncity's customers. There is still no information as to whether the customer funds will be withheld by the state or whether they can still be paid out.
Meanwhile, inMacau, all the VIP halls operated by Suncity have closed. Of course, such a measure does not only affect Suncity. Rather, all of Macau is suffering from the closure. It is estimated that Suncity accounted for 25 percent of all Macau sales. All casinos are therefore expecting a drop in sales in the future.
Apart from this, there are numerous restaurants, hotels and bars that belong to Suncity. Experts expect that these companies will either close or also face significant losses.
China's government is happy about the current development
Most states are happy about the tax revenue generated by the casinos. This does not appear to be the case in China, as the government is pleased both with the arrest of the Suncity boss and with the expected developments. Macau has become a truegambling metropolis in recent years and the Chinese government is not happy about that.
Approximately70 percent of Macau's gross domestic product comes from the gambling establishments. Therefore, the government is not pleased since Macau is dependent on these companies. The plan now is to make Macau a real tourism country, without criminal activities and without immoral activities. This is precisely why the Chinese government is so strict about illegal gambling and the criminal activities associated with it.
Experts also believe that China has a problem with mainland residents transferring their money to Macau instead of leaving it on the mainland. Whether this is really a problem or not cannot be confirmed. This is still a rumour. The Macau-based gambling companies are certainly not happy about the current development. This isnot only due to the expected decline in sales. The stock market also reacted immediately to Alvin Chau's arrest, which is why the prices of American companies also plummeted. These were those who own a casino in Macau.
Crown Casinos might be pleased
Suncity is known to many gambling fansin connection with Crown Casinos. Although Australian casinos are prohibited from accepting players from countries where gambling is prohibited, Crown Casino has partnered with Suncity. As a result, rich VIP guests were smuggled to Australia, who then laundered their money in the Crown Casinos. As a result of these dealings, Crown lost its Barangaroo license. In order to regain this, the business relationship with junket operators had to be broken off immediately.
Although Crown Casino claims it has severed ties with Suncity, the company could still be happy. After all, after the closure of the company, there is no longer any possibility of further cooperation. Also, the arrest of Chau should be taken as a warning to all other junket operators. If they also get involved in criminal activities, they must also expect investigations.