Macau casino shares fall amid 11 arrests Chau believed detained

Macau casino shares have plunged amid the arrests of 11 people over alleged links to cross-border gambling and money laundering, with Suncity Group Holdings Chairman Alvin Chau believed to be among those detained

Macau gambling casino shares make plunged amid the arrests of 11 people o'er alleged links to cross-border play and money laundering, with Suncity Group Holdings Chairman Alvin Chau believed to follow among those detained.

Suncity is Macau’s biggest junket operator, and its Founder Chau is widely believed to live the 47-year-old businessman that law said they were quizzical on Sunday. An stay warrant was reportedly issued for Chau on Fri past eastern Chinese metropolis Wenzhou, for operating gaming activities inward mainland China, where gambling is illegal.

MGM Cathay shares fell past 11%, with Wynn Macau and Sands People's Republic of China shares falling past 9% and 6% respectively, as investors dread both the short-term and long-term consequences of the arrests. Short-term issues involve potentiality loss of business, patch long-term worries centre around the potential hardline stance that will follow taken past authorities in Macau and mainland Communist China to ensure such a position doesn’t occur again.

Suncity Group shares in the meantime experience been suspended from trading.

“Suncity accounts for o'er 50% of junket revenue in Macau, which accounts for rough 50% of gaming revenues, so Suncity accounts for 25% of gaming revenues,” said Carlos Lobo, a Macau-based gaming consultant, as reported by Reuters.

“The impact on the play manufacture is huge... But Suncity is no more thirster too big to fail, the system of rules will not collapse.”