Suncity Group boss Alvin Chau
Local junket operator Suncity Group has denied allegations that the company has refused withdrawal requests from numerous clients because of depleting cash reserves. Reports of the withdrawals were first reported by Reuters.
According to the Reuters report, out of fear that Chinese authorities might tighten their grip on money outflow during the Covid-19 period, which may also bring risks to national security, patrons have started to rush to casino junkets, including Suncity, to withdraw their cash placed there for gambling purposes.
The report said Suncity had refused withdrawal requests made by hundreds of clients. A social media group was also set up to publicize the situation.
The news agency even cited an anonymous person who disclosed that the relevant sum of cash amounted to several billion Hong Kong dollars. Analysts told the news agency that although Macau casinos were resilient enough to get through the last few months with virtually no income, mass cash withdrawals imply a fading of confidence in the city’s gambling industry.
In response to the allegations, the junket operator made assurances about the soundness of its financial condition. It also denied the allegations that it refused client withdrawal requests. New policies pursuant to the latest requirements have also taken effect, which require withdrawals to be made only by account holders or legally authorized representatives.
Suncity has condemned the allegations – and not for the first time this year.
As early as 2019, the junket group has hinted at its intention to bid for a gambling concession in 2022, which is when the current concessions expire. The entity participated in the bid in 2002, but lost to SJM, Galaxy and Wynn, the holders of the original concessions.
Suncity boss Alvin Chau condemned these rumors several times this year. The rumors connected the group with the subsidizing of Hong Kong rioters, disclosing information about VIP customers to mainland Chinese authorities, and failing to cover their clients’ financial deposits.
Last year, the group was named by a Chinese national media outlet as a proxy bet or online gambling operator, prompting Chau to pledge that his group will follow mainland Chinese and Macau laws, even in the operation of overseas businesses.
In July, the group’s boss stated that its assets are able to completely cover customer deposits, foreseeable losses and bad debts.
The junket group suspended its years-long title sponsorship for the annual Macau Grand Prix this year. AL
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