Macau's Suncity Group Faces Major Legal Setback as CEO Receives 18-Year Prison Sentence

In a recent ruling, Macau's Court of Second Instance confirmed an 18-year prison sentence for Alvin Chau, the former CEO of Suncity Group, on charges of money laundering, illegal gambling, fraud, and association with criminal organizations. This decision follows the indictment of Chau and around 20 others for similar criminal activities. While some 20 individuals, including Chau, faced legal consequences, the spotlight was on five gaming operators seeking over $265 million in compensation from Suncity Group. Wynn Resorts, Galaxy, MGM China, SJM Resorts, and the Venetian Macau were among those pursuing financial damages.

The court confirmed that Chau was responsible for obtaining around $2.25 billion in illegal proceeds, including $921 million from proxy betting operations. Chau's arrest in November 2021 marked the beginning of a crackdown on casino junket operators in Macau, a sector previously linked to criminal activities like money laundering. This crackdown led to the severing of ties between major operators and junkets. MGM China, for instance, revealed earlier this year that junkets contribute only 3% to its gaming revenue, indicating a marginal impact. As a result of the crackdown, the number of active junket operators plummeted to 36, a stark decline from over 230 a decade ago.