Junket fallout continues in Macau

Sands China and Melco Resorts will close their VIP rooms this month as the fallout from the arrest of Suncity Group CEO Alvin Chau continues.

Melco will close its VIP rooms from December 21, a day after Wynn, according to a Bloomberg report, while local Chinese media says Sands will shutter its rooms by the end of the month.

Suncity Group, the largest junket operator, shut its VIP rooms on December 1, just days after the arrest of Chau. Morgan Stanley said other operators are likely to shutter their VIP operations.

“This could effectively mean the end of junket VIP in Macau, even though there is no rule to ban them,” it said in a note.

Meanwhile, analysts from Bernstein published on Monday stated that the Gaming Inspection and Coordination Bureau has instructed junkets to stop offering credit to customers and allow only cash play.

Source: Asia Gaming Brief