Macau’s Court of Final Appeal has upheld a prison sentence for former Suncity Group CEO Alvin Chau of 18 years, rejecting his appeal to shorten the term. This comes at the end of a closely watched case that has had major implications for Macau’s casino industry.

Macau Court Denies Appeals by Chau and Eight Other Defendants

The court confirmed on July 3 in an in-camera hearing the initial ruling handed down in January last year, which found Chau guilty of criminal association, illegal gambling, and money laundering, reported the Macau Daily Times. Eight other defendants connected to the same case also had their appeals denied, keeping their sentences between nine and 12-and-a-half years.

Chau was convicted of making illegal gains through money laundering and illegal gambling activities. The court found that he and his associates brought in HKD24.87 billion ($3.18 billion) from these activities, which must be returned to the Macau government as ill-gotten gains.

His legal saga began when he was arrested by Macau authorities in November 2021 on charges including leading a criminal syndicate and being involved in illicit gambling operations. After several months of trial at the Court of First Instance, Chau was found guilty on 103 out of 229 charges related to gambling. Some were dropped because they exceeded the statute of limitations while another 59 were added on top of them. Chau was acquitted on charges linked to money laundering.

Court Decision Reinforces Government’s Commitment to Crackdown on Junket Industry

The final sentence remained unchanged despite multiple appeals, including one for clemency addressed to Chinese President Xi Jinping where he portrayed himself as a pivotal figure who transformed Macau into a global tourism hub. The Court of Second Instance scrapped his fraud conviction but jacked up the amount that should be paid back by Chau.

Attempts by the prosecution to reinstate fraud charges against him and seek tougher penalties failed too. 

However, this decision cements the hard Macau government stance taken towards Chau and others involved. It further underscores the clampdown against the junket industry and the crackdown on illegal gambling operations being carried out within Macao SAR borders.

Chau’s fall from grace reflects wider crackdowns on capital flight facilitated via junket operators as well as money laundering by Mainland Chinese authorities. Following his detention, Suncity Group – formerly Asia’s largest junket operator – was exposed to significant risks arising out of these activities leading to its shutdown.The case has also triggered sweeping changes across Macau’s casino sector with stricter regulations being put in place coupled with increased oversight mechanisms.

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Blackpool South MP Scott Benton has lost his appeal against a proposed suspension from the House of Commons following his involvement in a gambling-related lobbying sting operation. The Independent Expert Panel (IEP) dismissed his appeal as the UK prepares to enter the next stage of consultations on its upcoming gambling white paper.

The Parliament Condemned Benton’s Conduct

Mr. Benton was suspended from the Tory parliamentary party in April after an undercover investigation by The Times revealed that he was willing to break lobbying rules for money. In the gambling-related lobbying sting, Benton suggested to undercover reporters that he would agree to receive payment to assist a fake lobbying company by providing it with confidential documents.

The standards committee found that Benton’s actions constituted a substantial breach of regulations and recommended a 35-day suspension. Despite the MP denying his wrongdoing, the IEP ruled that they found his arguments insubstantial and upheld the suspension. Now, MPs will vote on the punishment, and if passed, triggering a recall petition and a possible by-election.

Taking all these matters into account, we are satisfied that there is no substance in the Appellant’s grounds.

IEP statement

Benton’s conduct caused significant controversy, receiving descriptions like “corrupt” and “for sale.” By undermining the Parliament’s reputation, Benton effectively violated Paragraph 17 of the House of Commons Code of Conduct, which states that members should undertake actions that could cause significant damage to the reputation and integrity of the House of Commons or its members.

UK’s Gambling Reform Faces Ongoing Challenges

In response to this newest ruling,  Benton expressed deep disappointment and accused the appeals process of regular leaks to the press. He emphasized his continued work for his constituents throughout the probe and claimed the process lacked fairness. While Benton admitted he had a lapse of judgment, the MP protested that his punishment was disproportionate.

This scandal further inflames the ongoing debates regarding the UK’s gambling white paper, which should reinvent the country’s gambling regulations. During the sting operation, Benton admitted that other MPs were willing to collaborate, highlighting how bad actors could attempt to subvert the much-needed reforms as the UK struggles with rising problem gambling rates.

Benton’s suspension highlights the growing tensions amidst the UK’s gambling reforms. Lawmakers have urged the government to hasten the consultation process and finalize the white paper, noting that further delays could have significant repercussions. This lobbying controversy is a potent reminder that some industry members may not share the same customer protection-focused priorities.

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Imperial Pacific International (IPI) faced another crippling blow on Monday as the US Supreme Court rejected its petition, upholding the Ninth Circuit’s previous ruling regarding the case. This decision allows the Commonwealth Casino Commission (CCC) to proceed with the revocation hearing concerning IPI’s casino license and will likely spell the end for Imperial Palace Casino in Saipan.

The Operator Exhausted All Legal Options

The casino, operated by IPI, ceased operations in March 2020 due to the COVID-19 pandemic, suffering a license suspension in April 2021 for failure to pay its license fees. IPI contested this decision, citing force majeure as the primary reason behind its casino closure. However, the Supreme Court highlighted that the force majeure event had concluded, and IPI had to pay its dues.

IPI, in response, filed civil suits against the CCC, alleging breaches in the casino license contract and an overstepping of its regulatory role in interpreting the agreement. The following legal disputes won the beleaguered operator some extra time to resolve its most pressing issues, but its efforts appear to have been in vain.

The CCC’s final compromise gave IPI until 30 December 2023 to pay back the $62 million in missed license fees or lose its license for good. That deadline passed without any attempts from the operator to pay its dues. Following the Supreme Court’s decision, the CCC is now free to hold a revocation hearing, which will likely spell the end of this saga.

A License Revocation Seems Inevitable

Commission representatives expressed relief at the Supreme Court’s decision, welcoming the opportunity to determine the fate of IPI’s license. Commissioner Ramon Dela Cruz stressed that IPI had ample time and due process to address its financial obligations to the CNMI government. The upcoming revocation hearing is scheduled for 31 January 2024 and should finally put the matter to rest.

Attorney General Edward E. Manibusan hailed the recent legal breakthrough, stressing the importance of enforcing IPI’s obligations to the CNMI. Although a license revocation is a natural next step for the Commission, the Commonwealth will likely face difficulties collecting its dues, as IPI has exhausted most of its assets, even auctioning off its liquor inventory.

This victory is important for the people of the Commonwealth in enforcing IPI’s failure to meet its contractual and statutory obligations to the people of the CNMI.

Attorney General Edward E. Manibusan

Despite legal challenges and appeals, the ruling from the highest court in the country affirms the CCC’s authority to pursue the revocation of IPI’s casino license. Although the process includes an official hearing, it is little more than a formality. This case highlights the lengths to which even a smaller casino operator will go to salvage its business, even against overwhelming odds.

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A few months after the devastating cyberattacks on MGM and Caesars, Bally’s property in Evansville, Indiana, has become the victim of a phishing scam. As a result, the casino hotel has lost more than $212,000.

As reported by the Evansville Police Department, the Bally’s venue was commissioning a construction firm for work on its property. At one point, however, a caller contacted the casino hotel’s management, claiming that the firm had had to change emails. In addition, the person provided Bally’s with a bank account and routing number for payment for the construction work.

Not suspecting the scam, Bally’s officials did as they were told and ended up paying $212,671 to the scammer. The casino operator immediately contacted the police, prompting an investigation.

While the phishing scam is not exactly a cyberattack, it is part of a larger trend that has seen fraudsters target major commercial casino companies. As mentioned, some of the biggest casino operators in the United States suffered serious security breaches earlier this year, jeopardizing their businesses and inducing millions in losses.

Not the First Time Bally’s Evansville Has Dealt with Crime and Fraudsters

Bally’s Evansville is a property with 45,000 square feet of gaming space. Boasting some 950 slots and 30 electronic and live dealer gaming tables, the venue offers a variety of games to its patrons. In addition to that, sports fans can place wagers at the property’s William Hill-branded sportsbook.

Unfortunately, the phishing attempt is not the first time Bally’s Evansville has had to deal with cases of fraud and crime. A month ago, a suspect in auto theft case was arrested at the property.

Again in November, the police arrested another Bally’s Evansville patron for leaving their child unattended while going to gamble. This reflects an unfortunate trend across the US that has seen irresponsible parents ignore their children while visiting casinos. In November alone, the Pennsylvania Gaming Control Board, for example banned four casino patrons because of such violations.

In March, Bally’s Evansville had to fire a former pit supervisor who was charged with running an illegal poker room called Ed’s Poker Club. The man had been organizing illegal poker games for years, greatly intensifying his efforts during the COVID-19 pandemic.

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Star Entertainment Group has six more months to regain its license in New South Wales, lest it risk closing. As reported by The Sydney Morning Herald, the NSW regulator is not content with Star’s ability to do business without supervision.

Star’s business has been having regulatory trouble for some time now. Its casino license was suspended by the NSW Independent Casino Commission (NICC) last year after a probe that uncovered multiple AML and CTF failings.

An independent manager has been appointed to oversee Star’s Sydney property ever since, ensuring that the company implements its remediation plan. However, the NICC does not believe that Star has yet reached a point where its license suspension can be lifted since it does not trust the company to run its casino without supervision.

The NICC spokesperson confirmed that The Star should prove its capability to run its business independently within six months or risk losing its license for real.

This comes just after the NSW and Queensland regulators agreed to extend the terms of the independent managers appointed to oversee Star’s business in two states. Back then, Star also pointed out that this would be the final extension of the manager’s term.

NICC Says Manager Weeks Has Been the Main Driver of Remediation

The NICC was very unhappy at the fact that much of Star’s remediation measures had been spearheaded by independent manager Nicholas Weeks, instead of driven by the casino company’s own decisions.

In addition, the regulator has doubts that the NSW remediation plan would be enough to reinstate Star Entertainment’s license. The NICC also expressed its concerns that the operator’s profit-driven culture might return once the independent manager concludes his term, considering that a significant portion of the senior executive team has remained the same.

However, a Star Sydney spokesperson argued that the company is firmly committed to implementing the remediation plan with the “utmost rigor and discipline.” The Star team said that it is pleased to have had the opportunity to work with manager Weeks for so long and is glad that his term was extended three times.

In any case, Star will be fighting an uphill battle if it is to retain its license. The company must make sure that its business is in order and show initiative when implementing remediation measures.

In other news, Star recently renegotiated its duty rates in NSW.

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