Investors protest, demand government aid
Investors in Dore Entertainment, the Macau junket runner at the center of a multimillion-dollar theft scandal, are demanding action from the Macanese government. According to the Macau Daily Times, investors in the VIP agency delivered a complaint to the Secretariat for Economy and Finance last month, and then held a silent demonstration in front of government headquarters asking authorities to help them “get back their savings.”
“The Macau government is not helping us,” said a spokeswoman for the group. “Just as parents never refuse to help their children when they are in trouble, the government should help us as well to get our money back. The government cannot just let the case continue like this without taking any responsibility. They should care for us.”
The same group of about 17 local investors has also protested in front of Wynn Macau, the scene of the alleged crime. Cage cashier Mimi Chow reportedly stole millions of dollars, though reports differed widely on the amount stolen. Dore contends that the losses amounted to HK$100 million (US$13 million), but the complainants say they have lost about HKD440 million (US$56.7 million) as a result of the heist.
The case has only heightened tension in the city, which has seen its fortunes fall precipitously since summer 2014, when Chinese President Xi Jinping began his crackdown on corruption in the casino industry. The campaign has scared off many high rollers and shaved up to 50 percent of value from the world’s No. 1 gaming destination. The junket scare, for its part, has caused investors to pull back. Because their money was used to fund the junkets’ rolling-chip programs, it has caused a “liquidity squeeze,” said Daiwa Securities.
With less ready cash and investors feverishly redeeming their money, the high rollers who still play in Macau have less to gamble with. According to Business Insider, a similar theft in 2014 led to the shutdowns of 16 percent of all junkets in the city.
Adjusting to the market changes, Galaxy Entertainment has converted the former David Group VIP area at its Galaxy Macau in Cotai to a premium mass-table space, reported GGRAsia. Table minimums at the new Pavilion VIP Room range from HKD2,000 (US$258) to HKD10,000. Players must be platinum members of Galaxy’s Privilege Club to play in the room, or join by invitation.
The David Group announced in January that it was closing some Macau VIP rooms and expanding its business overseas.
