Macau junket Suncity gives rare details VIP finances in rebuttal of online criticism

imageStock Markets5 hours ago (Jul 13, 2020 02:05AM ET)

(C) Reuters. FILE PHOTO: A logo of Macau junket operator Suncity Group is seen at a gaming fair in Macau

HONG KONG (Reuters) – Macau’s biggest junket operator Suncity, which operates VIP gambling rooms across Asia, has given rare insight into its balance sheet during a rebuttal of online criticism, saying it is financially robust and not the target of law enforcement.

In a seven-minute video released on Sunday, Suncity founder Alvin Chau rejected social media posts that appeared in recent days alleging the firm was unable to cover customers’ financial deposits and that mainland Chinese authorities had information about its VIP customers.

Chau said the VIP club’s total fiscal reserves stood at HK$10.58 billion ($1.37 billion) while cash flow used in daily operations was HK$18.6 billion. The group additionally has HK$16.5 billion in two Macau banks, he said.

“We have the capability and enough capital to offset any bad debts and chip deposits of all clients. I would like to reiterate that Suncity is a very stable financial platform.”

As Chau spoke, the video showed images of letters dated July and bearing Suncity’s name beneath the letterheads of two of China’s biggest banks.

Suncity has never received any requests from mainland or overseas authorities demanding customer information and, contrary to online speculation, there has been no leak of any data, he said.

“Suncity has completely abided by the law in operating tourism and gaming businesses in Macau,” Chau said, adding that no employees are stationed in or participate in any gaming related businesses in the mainland.

Casino gambling is illegal in China outside Macau’s special administrative region.

Last July, Suncity was singled out by state-backed Chinese media which attacked online gaming activities for causing what it described as great harm to China’s social economic order. Suncity last year said it did not operate any online gaming.

Suncity’s publicly listed entity in Hong Kong, Suncity Group Holdings Ltd (HK:1383), does not include its junket operations. Junket operators are go-betweens who bring high rollers to play at casinos, extending them credit and collecting on their debts.

Chau also denied speculation that Suncity was subsidising Hong Kong “rioters” with the group having “wholehearted devotion to the motherland”.

($1 = 7.7507 Hong Kong dollars)

Macau junket Suncity gives rare details VIP finances in rebuttal of online criticism

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.