Feb 07, 2022 Newsdesk Latest News, Macau, Top of the deck
Casino operator Las Vegas Sands Corp, the parent of Macau casino firm Sands China Ltd, says the group has terminated in December the cooperation agreements it had with its “three primary” gaming promoters in Macau, entities also known as junkets.
“There can be no assurance we will be able to maintain, or grow, our relationships with gaming promoters or that gaming promoters will continue to be licensed by the gaming regulator to operate in Macau, which could impact our business, financial condition, results of operations and cash flows,” said the parent company in its annual report filed on Friday.
“For example, consistent with the overall market in Macau, we terminated our agreements with our three primary gaming promoters in December 2021,” added the firm.
It had been reported in December that a number of Macau´s casino concessionaires were to cease collaboration with junket brands, following the detention in late November of Alvin Chau Cheok Wa, and the shutdown of his junket brand Suncity Group, described previously by investment analysts as the largest VIP operator in the city.
At least three of the city’s six operators – Wynn Macau Ltd, Melco Resorts Entertainment Ltd and Galaxy Entertainment Group Ltd – have confirmed to GGRAsia that junkets had ceased operations at their respective properties in Macau
In its annual report, Las Vegas Sands said the “quality of gaming promoters” with whom it has relationships is “important” to the group´s reputation and its ability “to continue to operate in compliance with our gaming licences”.
“While we strive for excellence in our associations with gaming promoters, we cannot assure you the gaming promoters with whom we are associated will meet the high standards we insist upon,” stated the company.
It added: “In the event a gaming promoter does not meet its financial obligations, there can be no assurance we may not incur financial exposure.”
Macau’s casino junket sector has been in the spotlight since the detention of Suncity’s Mr Chau, and more recently of Levo Chan Weng Lin, boss of junket brand Tak Chun. Mr Chan is suspected of being a leader in a triad criminal group, said the Macau’s Public Prosecutions Office in a note last week.
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”The [Macau] month-to-date run-rate represents an approximately 45-percent recovery versus pre-Covid-19 levels for headline gross gaming revenue”
DS Kim and Mufan Shi
Analysts at brokerage JP Morgan Securities