Suncity Group made a decision to stop operating its VIP rooms in facilities in Australia. This junket operator from Macau is seeing a drop in the revenue from its operation. This likely led to the decision. But, it is also in a tight spot when it comes to activities and ties to Crown Resorts.
These include questionable settlements of gambling payouts across borders and other ventures that might be illegal. Suncity has not connected these with the decision to withdraw from the business of the VIP rooms. But, the closure still comes at an awkward time in relation to Crown Resorts.
The rooms are ceasing operations in the Star Entertainment’s Sydneyćs facility. Before this took place, both companies reached an agreement. This supposedly happened in the last 10 days. It will also close its VIP operation in the Southbank casino that is set in Melbourne. Crown is the casino operator for this venue.
Drop in the Revenue
Star Entertainment showed a drop in revenue coming from high rollers of over 30 percent on a year-on-year basis. Matt Bekier, the CEO of the company confirmed the closure and said that VIP room at Suncity will stop working. He also described the venture as a small fixed room, which points to preemptive PR damage control.
All of that boils down to the connection between Crown and possible activity of a criminal nature. In numerous media reports on this topic, Suncity’s name appears multiple times. These include the motions of Alvin Chau, its CEO as a person who is banned from entering Australia. Chau said that these are false allegations and that he considering suing the same news outlets.
What is more, it appears that his lawyers already began preparing a case and a legal action seems imminent. If it comes to this, Chau will seek serious monetary damages, according to the same team of lawyers. But, besides that side of the story, it seems that Suncity is still on shaky legal grounds in Australia.
The same ground will only stabilize or get even more volatile if or when the Crown case gets its next legal step. Right now, this is anyone’s guess but there is clearly enough suspicions to keep the case going. This might take the form of a news report, but the government and law enforcement will have to step in at some moment. Chances are that this will happen sooner than later.
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