China’s anti-graft drive puts squeeze on Macau junkets

Macau-Macau-Macau's casino junket operators feel tight as China's rotten movement has opened a hole in the world's largest gambling hub. Some are trying to move players to other countries, such as the Philippines and Vietnam. Some withdraw from this business.

A limousine with the San City Group's logo is parked outside Macau's Galaxy Resort (taken on June 23, 2013). Reuters/Paul Yeung/Reports (CHIN A-Tags: Business trip)

On September 24, 2014, he was the Deputy Director Liu Tenka, the National Development Reform Committee of the National Development Reform, which is being trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired in May last year, was ordered to take a trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China as it is not to be sold.

On September 24, 2014, he was the Deputy Director Liu Tenka, the National Development Reform Committee of the National Development Reform, which is being trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired in May last year, was ordered to take a trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China as it is not to be sold.

A limousine with the San City Group's logo is parked outside Macau's Galaxy Resort (taken on June 23, 2013). Reuters/Paul Yeung/Reports (CHIN A-Tags: Business trip)

On September 24, 2014, he was the Deputy Director Liu Tenka, the National Development Reform Committee of the National Development Reform, which is being trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired in May last year, was ordered to take a trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China as it is not to be sold.

On September 24, 2014, he was the Deputy Director Liu Tenka, the National Development Reform Committee of the National Development Reform, which is being trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired in May last year, was ordered to take a trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China, as it is not sold. The casino junket operator has been shifting to other countries, such as the China's rotten movement in the world's largest gambling hub. There are also those who withdraw from this business.

A limousine with the San City Group's logo is parked outside Macau's Galaxy Resort (taken on June 23, 2013). Reuters/Paul Yeung/Reports (CHIN A-Tags: Business trip) On September 24, 2014, he was a Chinese highest planning agency and a former Deputy Director of Liu Tenshi, the National Development Reform Committee, under trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired in May last year, was ordered to take a trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China as it is. On September 24, 2014, he was the Deputy Director Liu Tenka, the National Development Reform Committee of the National Development Reform, which is being trial at the Intermediate People's Law in Corridor, Kawakita Province. Liu, who was fired last May, was ordered to be trial on Wednesday, abused the government's status, and was charged with bribes, announced in June. 。 Reuters/CCTV VIA REUTERS TV (CHIN A-Tags. Reuters cannot verify the truth, content, location, and date of this image. Limited to use for editing. Sales for marketing and advertising campaigns. Not sold in China, as not to be sold. Liu Tian'an, a former vice-chairman of China's top planning body, the National Development and Reform Commission, speaks during a hearing at the Intermediate People's Court in Langfang, Hebei province (image taken from video footage taken on September 24, 2014). Liu, who was fired in May last year and ordered to stand trial on Wednesday, is accused of abusing his government position and taking bribes, Chinese prosecutors said in June. Reuters/CCTV via Reuters TV (China - Tags: politics criminal law business TPX Picture of the Day) EDITOR'S NOTE - This image has been provided by a third party. Reuters cannot independently verify the authenticity, content, location or date of this image. For editorial use only. Not for sale for marketing or advertising campaigns. Not for sale. Not for record. China excluded. No commercial or editorial sale in China. This image is distributed as received by Reuters as a service to our customers. Guests stand on either side of a Suncity Group logo-emblazoned limousine outside Macau Galaxy Resort in Macau, June 23, 2013. REUTERS/Paul Yeung/Reports (China - Tags.) Galaxy Suncity VIP Club logo displayed inside Macau Galaxy Resort in Macau, November 20, 2013. Reuters/Tyrone SIU/Files (China - Tags: Business Trip) More articles Circa breaks records for prize money and entries in NFL contest

Macau-Macau-Macau's casino junket operators feel tight as China's rotten movement has opened a hole in the world's largest gambling hub. Some are trying to move players to other countries, such as the Philippines and Vietnam. Some withdraw from this business.

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By Farah Master Reuters

September 25, 2014 - 1:55 pm

MACAU - Macau's casino junket operators are feeling the squeeze as China's anti-corruption campaign blows a hole in the world's biggest gambling hub. Some are looking to move players to other countries, such as the Philippines and Vietnam. Others are getting out of the business.

Chinese President Xi Jinping's nearly two-year crackdown on corrupt officials and tycoons has hit Macau's VIP lounge revenues, with analysts predicting low single-digit growth at worst this year, though "mass" market players are making up some of the lost ground.

So-called "big whale" players, who can drop $1 million ($129, 000) on a single bet and not get a flash, are finding themselves on thin ground as the Chinese economy loses steam and eats away at their net worth. Junkets are commissioned by casinos to collect high rollers, lend them money and settle their debts, but they have become more willing to offer generous credit terms in recent times as they have become tougher to chase.

And local authorities' connections with Beijing have inclined junket operators (often informally over quiet drinks or hot dinners) to gather intelligence on suspected corrupt Chinese officials who may be laundering money through Macau.

"It keeps me up at night. There are too many problems," said a 54-year-old junket operator. "I'm not optimistic about the future of the VIP junket industry here".

"Beijing doesn't control it directly, but it is exerting subtle pressure on the country's authorities. Intelligence gathering has been stepped up and it's becoming harder for even low-level officials to come here to play." "

The Macau-born businessman, who runs the VIP tables at Galaxy Entertainment Group's Galaxy Macau resort, said he's been trying to get out of the business for more than 20 years. He noted that other junkets are flocking to overseas casinos where there's greater growth potential and farther away from Beijing's prying eyes.

At least 15 of Macau's 220 junket companies have closed up shop at major casinos this year, according to a recent report from Daiwa Capital Markets. The VIP business traditionally brings in nearly two-thirds of Macau's gaming revenue, which was $45 billion last year, more than seven times that of the Las Vegas Strip, but analysts predict it will be cut in half.

"Curbing corruption is part of business. China wants to help Macau. Both the central government and the Macau government are helping Macau develop," said Qian Li, former chairman and CEO of Iao Kun Group, a junket applying to list on the Hong Kong Stock Exchange.

In June, a senior junket coach was questioned in Hong Kong by Chinese investigators for providing information about Chinese officials playing in Macau, two people with direct knowledge of the matter said.

At the end of last year, more than six or more people engaged in the junket business were detained at Win Resorts Win Macau Casino. In April this year, local media reported that one of the owners of the major junket Neptune Group, Zhang Jishi, was detained in Hong Kong, along with $ 200 million (about 25. 8 million yen). In the Money Laundering trial of Carson Yong, a former owner of the English soccer club, Birmingham City, the Money Laundering trial was not obtained. The Hong Kong police stated that they will not comment on individual cases.

MGM Resorts International, Las Vegas Sands, and Win Resorts are all significant in Macau.

Industry executives do not want to eliminate the Macau's junket industry (the only place where gambling is legal in China), and support transparent businesses within the rules. I say there.

"The government wants to support Macau. It needs to work on a junket for Macau," said a leading junket operator.

"Former Commander of the Royal Criminal Information Bureau of Hong Kong, and now Steve Bicker, the highest executive of Steve Bickers Associates based in Hong Kong, says. Because we are looking for, the junket must be accepted and supervised. "

Vickers compared the situation to the Junko Beauty Parade and said, "Some will be the winner and some will be the loser."

In June, "the lon g-term growth and development is limited to the group," said Dore, a former top operator in the junkoquet.

The Macau government is encouraging the game industry to diversify the game industry, which has more than 80 % of the tax revenues in the special administrative district. San City, a major junket interested in real estate and finance in entertainment and media, was selected as the official sponsor of the Macau Grand Prix held by Formula Three every year.