Suncity Group Holdings has decided to close all of its VIP rooms in Macau until further notice.
Macau.- TDM Macau has reported that following the arrest of Alvin Chau Cheok Wa on cross-border gambling and money laundering accusations, Suncity Group Holdings has decided to close all of its VIP rooms in Macau until further notice. The closure applies from today (December 1).
According to local media, the company had considered keeping the VIP lounges at the StarWorld Hotel and Galaxy Macau open, but finally they will also close.
Alvin Chau has submitted his resignation following his arrest. Suncity said the CEO’s arrest may affect the income of its tourism-related business but should not have a significant impact on the group and its ability to do normal business. It said that, as far as it knows, no other group units or employees are being investigated for illegal gambling and money laundering activities. After the arrest, Suncity stocks plunged by 48 per cent to only HK$0.13.
The VIP business currently accounts for about one-third of total Macau’s revenue, and its profit margin is lower than that of the mass market and high-end mass-market segments. Some analysts worry that the consequences of the Suncity case may also have an impact on the high-end mass businesses, which would be a greater blow to Macau.