Considering that casinos handle large sums of cash, they are often vulnerable to attempts of criminal activities. From fraud and cheating to money laundering, land-based casino operators are constantly on high alert to combat unlawful activities and identify bad actors.

While in some cases, the culprits are guests, in others, insider involvement is possible. This is precisely the case for several people who have recently been arrested by the Judiciary Police in Macau over allegedly participating in a criminal syndicate that defrauded a Cotai Strip casino.

Overall, eight people have been arrested on suspicion of involvement in the criminal activities. All of the detainees are local residents, and their age is between 33 and 42. Despite the arrest of the eight people, law enforcement considers that more individuals are involved in the unlawful activities and it will continue to investigate in order to identify and detain them.

The Judiciary Police said that the group’s actions resulted in losses of an estimated HK$4.54 million ($581,500) for one casino operator in Macau. However, the name of the casino was not disclosed. The same group is suspected of being involved in at least two other crimes, dating back to earlier this year.

During the arrest of the eight individuals, police raided a number of properties. In the process of detention, some of the suspects were not cooperative with law enforcement. It is unclear what charges each of the suspects is facing.

Casino Operator Employees Suspected of Collaborating with Criminal Syndicate

Out of the eight people who were arrested, five have been employed by the casino operator that was defrauded. Those employees, who held roles such as dealers, table game managers and directors, are suspected of collaborating with the criminal syndicate that ultimately resulted in the hefty losses for the gambling operator.

On the other hand, the three other individuals who were apprehended are suspected of orchestrating the criminal activities. The trio allegedly played an important role for the group with a focus on planning the unlawful activities.

The three members of the criminal syndicate allegedly collaborated with casino employees to manipulate card games. This enabled them to gain an advantage in games, ultimately defrauding the casino out of HK$4.54 million ($581,500).

The recent case raises a serious concern about the breach of trust of the aforementioned casino employees, some of which held important roles. Still, anyone is considered innocent before being proven guilty beyond a reasonable doubt in court.

The post Macau Casino Employees Suspected of Ties to Criminal Group appeared first on Keno Wizard.

The Macau Judiciary Police have arrested five Chinese nationals suspected to be related to a cross-border criminal syndicate. The criminal organization, according to the authorities, uses counterfeit chips in casinos in Macau.

The arrests followed a recent report from a casino in the Cotai area where a customer exchanged fake chips for money. After the staff realized that they had been scammed they referred the matter to the police.

Local authorities immediately launched an investigation into the matter and quickly arrested five men from mainland China at the casino. Aged between 21 and 28, the five arrestees were suspected of being a part of a criminal organization that imports fake chips into Macau. The police are currently on the lookout for three other suspects who might be related to the case.

In addition to arresting the five men, the police were able to seize a whopping 585 fake chips worth approximately $750,000. More than 130 of those were discovered in toilets and taxi compartments near the border and might have been abandoned by other participants in the criminal scheme.

Upon careful inspection, the police concluded that the fake chips were extremely realistic and difficult to differentiate from real ones at first glance.

The Macau authorities believe that they are dealing with a fairly new criminal organization. According to the police, the group is believed to have started its illegal scheme in March.

The investigation is still ongoing.

Macau Seeks to Crack Down on Gambling Crime

Speaking of gambling crime in Macau, the country recently proposed a law that would exempt minor gambling offenders from prosecution, or at least reduce their penalties, if they provide evidence against others.

In addition to exempting whistleblowers from penalties, the new law would allow the police to search the property of potential witnesses or suspects during the night.

Additionally, Macau lawmakers proposed an amendment to the region’s Criminal Procedure Code that would allow it to implement an extension of detention measure. This matter was raised after Alvin Chau, the chairman of the controversial Suncity junket, argued that the detention period of certain individuals in the Suncity case had already expired.

The post Macau Police Arrest 5 Casino Fraudsters, Seize Fake Chips appeared first on Keno Wizard.

Galaxy Entertainment Group, a market leader in gaming and hospitality, has formed a historic partnership with Capella Hotels and Resorts, the best hotel brand in the world, according to Travel + Leisure Magazine. As a result, the former company’s Galaxy Macau property will become the home of the first Capella property in The Greater Bay Area.

Capella’s 5-star hotel is expected to open by the middle of 2025 and will bring visitors the quality the brand is usually associated with. The new property will enhance the Galaxy Macau complex and would redefine Macau leisure.

Capella at Galaxy Macau will feature a 17-storey hotel with 36 Sky Villas and 57 suites. The luxurious property has been designed by the renowned French firm Moinard Bētaille which has drawn strong inspirations by the local flora.

The Sky Villas will feature a balcony, infinity-edge pool, outdoor lounge, sunroom and hidden winter garden, allowing guests to experience a truly relaxing atmosphere. The villas also sport amenities like a karaoke room, a cocktail bar with a selection of rare whiskies and a games lounge, among others.

The Capella at Galaxy Macau hotel will also sport a variety of other luxurious facilities and premium dining options. The property will notably collaborate with Chef Vicky Cheng to provide guests with an opportunity to dine at an outstanding restaurant.

Capella at Galaxy Macau Will Redefine Luxury

Galaxy Entertainment Group’s vice chairman, Francis Lui, said that his team is looking forward to welcoming guests to this ultra-luxurious hotel. According to him, the tie-up with Capella Hotels and Resorts reflects his team’s desire to create memorable properties within the Galaxy Macau integrated resort and beyond.

We are honored that the globally acclaimed Capella Hotels and Resorts has chosen to partner with us, enabling the world’s most discerning guests to forge new and authentic connections with Macau – a global arts and entertainment hub with a rich cultural history and gateway to the Greater Bay Area.

Francis Lui, VP, Galaxy Entertainment Group

According to Lui, the new addition to the integrated resort will help Galaxy Macau remain ahead of the curve when it comes to providing luxurious hospitality experiences in Macau.

Evan Kwee, vice chairman of Capella Hotel Group, called the creation of the new hotel a “pivotal moment” for his company. He said that his team hopes that the property will introduce visitors to Macau’s rich cultural heritage.

Moinard Bētaille’s Bruno Moinard and Claire Bētaille also commented on the matter, thanking Galaxy Entertainment Group for providing them with exceptional freedom when it came to designing Capella at Galaxy Macau. Chef Cheng also commented on the matter, saying that she cannot wait to impress Capella at Galaxy Macau guests with French-meets-Chinese flavors.

Speaking of Galaxy Entertainment, in February, the company published its Q4 and full-year results, highlighting a strong post-COVID recovery.

The post Galaxy Macau Teams Up with Capella Hotels and Resorts for a New 5-Star Hotel appeared first on Keno Wizard.

Macau’s gaming operators are facing the challenge of upcoming debt maturities, with significant obligations slated for 2025. However, amidst the financial landscape shaped by the COVID-19 pandemic, these operators seem prepared to handle the situation with cautious optimism.

Macau Casinos Delay Debt Refinancing for 2025, Eyeing Improved Cash Flow

According to recent insights from S&P Global Ratings, Macau’s gaming operators are strategizing to delay refinancing plans for their 2025 debt maturities. This delay is primarily aimed at capitalizing on potential reductions in interest rates and anticipating improved cash flow from the Macau market in the coming quarters.

Melissa Long, director of corporate ratings at S&P Global, highlighted that operators are likely to wait before addressing these 2025 maturities, expecting a favorable shift in interest rates and enhanced cash flow generation from the Macau market. Long emphasized the operators’ intention to prudently manage larger maturity needs while actively seeking to preserve liquidity positions.

While some operators are expected to face current debt obligations in the near term, S&P Global remains optimistic about its ability to maintain sufficient cash resources to sustain liquidity positions.

The agency also anticipates continued support from banks, buoyed by the market’s robust recovery and operators’ improved cash flow and leverage metrics.

MGM China and Wynn Macau Set to Weather 2024 Debt Maturities

MGM China and Wynn Macau, specifically mentioned in S&P Global’s analysis, are deemed well-positioned to handle their 2024 maturities without the need for immediate refinancing. This financial stability is attributed to their existing cash reserves and access to revolving credit facilities.

The debt landscape in Macau’s gaming sector reflects the broader trend of recovery in the region’s gambling industry. Despite the challenges posed by the pandemic, Macau’s casino revenue is projected to surpass pre-COVID levels for the first time in 2024. Factors such as increased outbound Chinese travel and strong performance during the Lunar New Year break contribute to this optimistic outlook.

The shift towards mass-market gambling following regulatory crackdowns on VIP junkets indicates a strategic adaptation among casino operators. This transition, coupled with ongoing improvements in cash flow and market share, underscores the resilience of Macau’s gaming industry.

Looking ahead, the positive trajectory of Macau’s casino revenue and the gradual easing of pandemic-related restrictions bode well for the sector’s long-term stability. While challenges persist, including looming debt maturities and competitive pressures, Macau’s gaming operators appear poised to navigate these obstacles with resilience and adaptability.

The post Macau Casinos Navigate Debt Maturities Amidst Positive Revenue Outlook appeared first on Keno Wizard.

Casino operators are often targeted by criminals who attempt to cheat or manipulate the games for their advantage. While some try to cheat, others engage in fraudulent activities such as using fake chips to play. Last year, a massive fraudulent scheme was uncovered in Macau with police authorities seizing nearly 1,000 fake chips. During the police operation, it was uncovered that close to 500 counterfeit casino chips were used at Galaxy Macau Casino.

Now, the Judiciary Police in Macau arrested individuals suspected of being involved in similar activities. Last week, law enforcement was notified by a casino in Cotai City that an inspection uncovered counterfeit casino chips. One of the casino dealers at the venue was conducting a routine check of the chips when they found inconsistencies related to 25 chips that appeared in the bead trays of two gaming tables at once.

This is when the casino uncovered that it was defrauded by a group of individuals who used fake chips. The casino, whose name was not released by the Judiciary Police, found out that the culprits transformed HK$100 ($13) chips into HK$10,000 ($1,300) chips. At least 33 counterfeit casino chips were discovered at the aforementioned casino, causing an estimated loss of HK$1.62 million ($200,000).

Police Arrests Suspects, Continues Investigations

It wasn’t long before suspects were detained in relation to the fraudulent activity. According to the Judiciary Police, four individuals allegedly involved in the activity were detained by the casino’s security guards. Still, the casino identified that more people were involved and notified law enforcement.

Another suspect, believed to be involved in the fraudulent activity was successfully tracked down and detained by the police. All of the detainees are mainland China residents. The five people who were arrested claimed that they acted upon directions given by a higher-ranking member of the criminal group.

Besides the five people arrested, police uncovered that more individuals involved in the fraudulent activity were at large. As a result, three other individuals, labeled as key members of the criminal group, were detained in mainland China through cooperation between the Guangdong Provincial Public Security Department and the Zhuhai Criminal Police Detachment.

Overall, eight people allegedly involved in the criminal activity were arrested. Law enforcement confirmed the investigation into the case continues.

The post Macau Casino Chip Scam Results in Arrest of Eight Suspects appeared first on Keno Wizard.

Casino operators across the globe constantly strive to improve the conditions for their customers by rolling out different amenities. From comfortable chairs to the latest video slots and a wide range of table games, the competition among operators is fierce.

Currently, Macau is one major gambling hub for the Asian region and operators there also focus on ensuring exceptional entertainment for their guests. Now, according to a new study, the overall Gaming Service Index (GIS) across Macau for 2023, hit a new record. As announced by IAG, recently, the Macau Gaming Research Association (MGRA) released the results of its “Macau Gaming Service Index (GSI) 2023” survey, uncovering important details about the positive change within the gambling sector.

In 2013, when the first MGRA survey was released, the gambling sector in the country started from a base of 100 points. Ten years later, for the fourth quarter of 2023, Macau’s GSI was evaluated at 145 points. This result marked the highest-ever GSI recorded and represented an uptick of 7 points when compared to the Q4 2022 result of 138.

The second-best result ever recorded in terms of Macau’s GSI was 139, dating from Q2 2017. Overall, over the last decade, a rising trend was observed in Macau’s GSI, culminating with the latest result.

The Number of Players Boosts Casino Employee’s Performance

Besides the overall GSI for the gaming sector in Macau, the latest survey uncovered interesting insights regarding the sector. There were three main categories that were used for the assessment of gaming staff within the survey. Those categories included “smile,” “proactivity,” and “tolerance.”

When it comes to the smiling index, the latest survey revealed a result of 171, up when compared to the results from last year. Similarly, the proactivity index hit 172, marking once again an increase when compared to the results from the previous year. Last but not least, the tolerance index was 103, according to the latest study.

The newly released study made an important discovery, highlighting a connection between the recorded indexes and the number of players participating in a table game. According to the recent results, if there were between seven and nine gamblers participating in a game, the smile, proactivity and tolerance indexes were 1.13, 0.87 and 0.74. An increase to 1.24, 0.98 and 0.82 respectively was observed whenever there were more than nine players participating in a table game.

The collection of data for the new study was completed via mystery shopping surveys. A dozen casinos in Macau were evaluated for the latest GSI index.

The post Macau Gaming Service Index Hits Record Score in 2023, Survey appeared first on Keno Wizard.

Macau Horse Racing Company Limited, the company behind the Macau Jockey Club, announced with regret that it has reached an agreement with the Macau government to terminate its concession contract. Under this agreement, the contract will expire on April 1, 2024.

The Macau Jockey Club was founded through a contract between the Portuguese government and shareholders. However, the introduction of flat horse racing by the Taiwanese consortium in 1989 impacted the club’s business negatively. In 1991, the government requested the club to undergo a restructuring led by the local gambling leaders, which allowed it to continue its operations.

Throughout its history, the Macau Jockey Club has always strived to diversify gaming and racing on horses and support the growth of tourism in the special administrative region. Despite this, Macau Horse Racing Company Limited pointed out that it has been operating at a loss, accumulated in excess of 2.5 billion.

To make matters worse, there has been limited room for the development and growth of the horse racing industry in Macau, the company added. This issue was further exacerbated by the COVID-19 pandemic and China’s Zero-COVID policy, which brought further adverse effects.

As a result, sustaining the Macau Jockey Club’s operations became increasingly difficult.

The Company Thanked Its Supporters

According to the official announcement, the Macau Horse Racing Company Limited’s board of directors eventually decided to cease all racing-related operations. Despite that, the current member facilities will remain available to the Macau Jockey Club’s members, the company added.

It also used the opportunity to thank all colleagues who supported the company throughout the years, lauding their valuable contributions.

You have all served with a high level of professionalism with global recognition. The company will conduct necessary briefing sessions for the staff, provide assistance and job referrals, and comply with the provisions of Macau labor law to provide appropriate compensation.

Macau Horse Racing Company Limited statement

The Macau Horse Racing Company also expressed its appreciation of all horse owners and members, thanking them for their ongoing support. It added that specific details regarding the necessary arrangement for their horses will be provided at a later date and no later than March 31.

The post Macau Jockey Club Terminates Concession as Losses Exceed $2.5B appeared first on Keno Wizard.

Although Macau remains famous as the Vegas of the East, the region’s casino industry is now a far cry from its heyday of 2014 when 235 junket operators contributed around 60% of the $45 billion casino revenues, more than triple compared to Las Vegas. This drastic reduction is part of several targeted measures by local authorities to reign in the industry and diversify the region’s tourism sector.

Junkets Face Even Stricter Regulations

Macau’s gaming regulator set a cap of 50 junkets for 2024 last September. Only nine collaborators have registered so far, even though authorities allow up to 250 collaborators in the entire market. Gaming collaborators are individuals with extensive networks who use their influence to bring players to VIP rooms. They are subject to regulation and must adhere to strict guidelines.

Junket operators, each permitted to partner with a single gaming concessionaire, earn a commission, capped at 1.25% of rolling chip turnover, for their promotional services without sharing casino revenue. Licensing requires a guarantee of MOP 1.5 million ($186,500) and a minimum corporate capital of MOP 10 million ($1.24 million).

Macau’s VIP segment faces further restrictions as the government proposed barring junkets from lending money for gaming and enhancing controls over their activities. A new draft bill intends to limit credit provision to licensed companies, disallowing gaming intermediaries from this practice. The proposed legislation will significantly impact the junket sector, limiting its competitiveness.

The Industry Is Pivoting to High-Profile Resort Operators

Despite the significant reduction in junkets, Macau’s gambling industry has experienced an impressive resurgence as gaming revenue soared to MOP 183.05 billion ($22.76 billion) in 2023, marking a staggering 333.8 % increase compared to the previous year. These figures highlight the shift to high-profile casino resorts and the increasing reliance on customers from mainland China.

The 18-year prison sentence against Alvin Chau, the former CEO and founder of the junket operator Suncity Group, is another contributing factor to the declining popularity of such businesses, as they have faced significant scrutiny due to their associations with organized crime and money laundering. These shifting market paradigms allow local authorities better control over the gambling sector, contributing to a safer customer experience.

Evolving market dynamics and regulatory pressures mean that Macau’s Junket industry will likely continue its decline. While a few licensed operators will likely remain active, updated regulations and post-COVID realities mean the industry will never return to its previous state as the region steadily pivots to a new, more refined, and lustrous image.

The post Macau Witnesses Another Drastic Decline in Junkets appeared first on Keno Wizard.

Macau’s gaming industry reported a significant year-on-year gross gaming revenue increase in November. The special administrative region’s gambling sector was impacted negatively by the COVID-19 pandemic but seems on a steady path to recovery.

According to the report, the local gambling operators recorded GGR of almost $2 billion last month, marking a stellar 435% year-on-year increase. While this figure is still behind October 2023’s result, the November results demonstrate that the region is rebounding.

Experts also pointed out that November’s results being lower than those recorded in October was an expected outcome considering the National Day Golden Week holiday, which provided a significant boost to the industry last month. For reference, in October, Macau’s gambling operators reported GGR north of $2.4 billion.

Year-to-date GGR comes at roughly $20 billion, demonstrating a stellar 325% year-on-year increase. With this pace, the industry might be on track to hitting its $27 billion target in 2024.

Crime in Macau Is on the Rise

Unfortunately, the industry’s recovery was also accompanied by an increase in gambling-related crime. Macau’s Secretary for Security, Wong Sio Chak, just commented on the matter, revealing that local authorities have identified 716 gaming-related crimes this year.

The Secretary pointed out that cases of gambling-related fraud and thievery have skyrocketed. For reference, the police recorded 155 cases of fraud which represents an unfortunate 139% year-on-year increase. At the same time, casino thefts increased by a whopping 486% year-on-year (129 cases).

While this criminal activity corresponds to a year-on-year increase of 176%, it should be noted that the number of gambling-related cases was still 55.2% behind what the authorities recorded during the same period in 2019.

Money exchange fraud, which often happens around the region’s casinos, also represented a significant problem for the local authorities. Unfortunately, Macau would need to introduce new laws in order to combat money exchange gangs and put a stop to their activities.

Wong Sio Chak noted that the Judiciary Police has proposed a criminalization of illegal money exchange activities, hoping to increase the punishment for such criminal activities.

Speaking of gambling-related crime, a recent report claimed that the region’s Prosecutor’s Office reportedly wants charges against Alvin Chau and Suncity for fraud to be reinstated. For reference, Chau was recently sentenced to 18 years in prison but the Court of Second Instance ruled that his team no longer has to pay up.

The post Gambling-Related Crime in Macau Increases as the Industry Rebounds appeared first on Keno Wizard.

Bond investors from Asia and beyond are taking the risk and doubling down on investments in Macau casino debt. This move carries certain uncertainties but has the potential to be more lucrative than investments in corporate debt. At the moment, investing in Macau casino debt might be less risky than investing in shares too.

The debt issued by Macau’s gambling and entertainment companies is now even more tempting to investors amid the recovering gross gaming revenue. The special administrative region had struggled with the pandemic and China’s Zero-COVID policy for a while but is finally showing signs of recovery.

The rebounding gross gaming revenues have attracted the attention of a number of investors and consultancies who believe that the region’s future is bright.

Bonds May Be Securer Than Shares

In addition, the share prices of Macau’s six concessionaires are yet to rebound to pre-pandemic levels. In fact, most companies’ stock continues to fluctuate or even decline. While some experts believe that the Macau stocks deserve better, considering their strong recovery, investing in shares at the moment seems risky. Amid the stock-related uncertainties, investing in bonds seems to be somewhat safer for investors.

Furthermore, the trust in Macau casino bonds has led to Sands China’s bonds getting lifted to investment grade by S&P. Melco, on the other hand, just had its credit rating upgraded to stable, further confirming that investing in bonds might be the way to go.

Many investors may also be interested in a number of other boons provided by the Macau casino operator bond, including Asia’s low default rates and the departure of many Chinese firms from the bond market, which has decreased the overall supply.

In other news, five concessionaires that previously sought compensation from Suncity Group and Alvin Chau have now dropped their claims. This decision followed Chau’s imprisonment in October when the Court of Second Instance in Macau handed the junket mogul an 18-year sentence.

For reference, Chau and his junket were involved in a number of illicit activities, including fraud, criminal association, money laundering and illegal gaming.

The post Bond Investors Double Down on Macau Casino Debt appeared first on Keno Wizard.