Suncity Group suspected: was illegal gambling possible?
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Almost 1.4 billion people live in China. It is not surprising that there are also many people in this country who like to take part in games of chance. Unfortunately, any kind of gambling in China is regulated by the state, or in other words: gambling is banned across the board. Casinos are therefore not to be found in China and access to the online gambling is not possible due to state digital censorship systems. Only in the Chinese special administrative zone Macau is permitted. The Chinese junket company Suncity, based in the Far Eastern Las Vegas counterpart, is now said to have been punishable through illegal gambling offers.
Focus on Philippines and Cambodia
It is more than an open secret that the Chinese state media is not always objective. Nevertheless, one of the latest news about the junket company based in Macau has Suncity Group caused a sensation. Specifically, it is about the accusation of illegal gambling. A report from the Chinese economic newspaper Economic Information Daily according to it, suncity is said to have generated billions of billions through illegal gambling offers in the philippines and in cambodia. since the newspaper report has not made any sources, it is not possible to say with certainty how much truth is in the allegations. the Suncity Group in any case, the accusations have already shown in a public statement of rigoros. in other international newspapers, it has already been speculated whether the report might not be an attempt by the chinese government to intimidate the suncity group. this is always conceivable, since china has been in the clinch with suncity years. the reason for this is the actual business activity of the group, which is considered one of the largest junket providers in the region. this includes companies that above all Organizational and transport services for Highroller take over. In addition to planning hotel stays, for example, this also includes the transfer from the Chinese mainland – known to be completely prohibited on the game of chance – over to Macau, the high -gambling highburg of Asia, on which numerous legally active casinos line up.
Junket company with profitable business
Suncity is considered one of the most famous junket companies in Asian, especially Chinese space, you can look at the market a little more precisely, you can almost 200 different junket companies be counted in macau alone. already here it shows how strong the rush from the chinese mainland is towards macau – and how popular gambling despite or possibly also because of the state ban with many chinese. in addition to suncity, the most famous junket companies in macau are Asia Entertainment and Resources, the Neptune Group and Dore Holdings. despite the strong inlet, many junket companies have no really good reputation because rumors and reports are always public, individual junket companies would have connections to organized crime and are particularly involved in dubious loan transactions in china. the many junket companies in macau are individually considered, but rather small companies, i.e. subcontractors who are commissioned by the few big names of the industry. the junket market in macau is therefore a commission business, from which many people can still live well. nevertheless, the very legal business also depends on a negative reputation because the main Sub-junket company it is often commissioned to collect debts from customers – and not always legally. junket as a business activity is officially legal, but is usually only worthwhile at VIP customer With a correspondingly high flow of capital. The group then announced that the Suncity Group only offers junket services and in no way acts as an illegal provider of gambling with the following words in the public statement:
“The VIP game advertising business, which offers the group and others of their business units in Macau and in other countries or regions, is licensed, legitimate and regulated by the governments of the respective jurisdiction.”
Economic consequences for Suncity?
But even if it should come true that Suncity does not offer any illegal activities in gambling in the Philippines or in Cambodia, at least the call has suffered at short notice. It remains to be seen whether this also has sustainable effects in particular on the economic power of the group. Immediately after the article in the Chinese business magazine, the Suncity Group’s share price was not surprisingly negative: overall the course lost 20 percent in valuethis is a problem for the suncity group, because the company only had to be able to get into the casino business a few weeks ago. this is a problem for the suncity group, because the company only had to be able to get into the casino business a few weeks agothis is a problem for the suncity group, because the company only had to be able to get into the casino business a few weeks ago. For 2023 If the first official application for a valid casino license follows. So Suncity would only be the seventh casino provider in Macau, what Given the billion dollar market seems to be quite lucrative. at least believes that the competition could lead to further problems Chief Investment Officer Andrew Lo Kai Bong Not. One would lead to the other local casinos in Macau, and it would be legally not a crime after acquiring a lucky license to settle with a casino in Macau. It remains to be seen whether this can still occur after the latest allegations.