Global investment bank Credit Suisse Group AG reportedly warned that Macau's six casino operators could receive proxy claims totaling $6.37 billion as two of the region's biggest junket companies recently went bust.
According to a report by Inside Asian Gaming, the lawyer follows an internal split in the Suncity Group, an Asian junket giant, after the arrest of his boss, Alvin Chau Chuck Wa, in late November for allegedly encouraging illegal cross-border gambling and money laundering. The source elaborated that this subsequently led the city's six casino companies to cancel their partnership agreements with rival junket company Tak Chun Group.
According to reports, Macau's junket companies are promoting partner casinos to wealthy foreign gamblers while receiving fees to handle VIP's travel, accommodation and banking and credit needs, often for amounts that can reach millions of dollars. However, the number of such concerns has been steadily decreasing since 2013 due to changes in the market environment and the fact that authorities have become increasingly interested in the connection between unscrupulous individuals and organized criminal organizations.
Sardonna Fong, Lok Kan Chan and Kenneth Fong, analysts at Credit Suisse Group AG, used Thursday's filing to declare that casino acquisitions in Macau could now reportedly be liable for 'large proxy claims' between $3.82 billion and $6.37 billion. Investigators reportedly noted that the prediction came after a local ruling in November found casino operator Winn Macao Limited and junket vendor Dore Entertainment Company Limited to be jointly liable for VIP customer debt worth about $765,000.
Credit Suisse Group AG trio reportedly said in February that with a similar ruling on MGM China Holdings Limited, it meant casino operators in Macau would be held accountable for player debt piling up by now-defunct junket companies. This risk of end-of-life is said to be officially confirmed if the tenets of the region's draft gaming laws are fully approved later this year, and the legislation would make it illegal for junket companies to accept customer deposits for any purpose other than buying chips at a particular place.
"Two recent high court rulings hold casinos responsible for game-related deposits by game promoters.