The Las Vegas Sands Corp., parent company of Macau gaming concessionaire Sands China, has confirmed in an annual report that it terminated agreements with its “three primary gaming promoters” in December 2021.
According to Macau Business, the reference in the group’s 2021 report comes as regulators crack down on VIP gaming junket promoters. In recent months, the heads of the city’s two largest junkets, Suncity and Tak Chun, were arrested for promoting gambling on the mainland, among other charges, Alvin Chau and Levo Chan are both being held at Macau’s Coloane Prison pending trial.
As Sands noted, “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.
“For example, consistent with the overall market in Macau, we terminated our agreements with our three primary gaming promoters in December.”
Sands is especially eager to present a compliant face to the government now, with its gaming concession up for retender this summer.
Following Chau’s arrest at the end of November 2021, some local gaming operators were reported to have terminated their relationship with junket promoters, including Sands, Wynn Macau and Melco.
The Suncity Group boss had been detained at the time together with 10 other people for allegedly operating illegal gaming activities, criminal association and money laundering, charges that were also linked to the boss of Tak Chun last month upon his arrest.
Suncity later filed for dissolution, but Tak Chun was still recently included in the annual list of licensed VIP gaming promoters published by the Gaming Inspection and Coordination Bureau (DICJ).
Sands China indicated in the report that it could not assure investors that the gaming promoters with whom it is associated will meet the “high standards” it requires something that could end up impacting the group’s reputation.
“If a gaming promoter falls below our standards, we may suffer reputational harm, as well as worsening relationships with, and possible sanctions from, gaming regulators with authority over our operations. In the event a gaming promoter does not meet its financial obligations, there can be no assurance we may not incur financial exposure,” the operator stated.
