The Macau government issued a release on 27 November confirming that an individual named Chau has been asked to assist in a police investigation regarding legal compliance. This action follows the issuance of an arrest warrant by the Wenzhou Municipal People’s Procuratorate in Zhejiang Province. The authorities on the mainland allege that Chau established an illegal cross-border gambling syndicate, facilitating the travel of Chinese residents abroad for VIP gambling activities. These operations involved a significant capital investment. Chau has been advised by the Wenzhou Procuratorate that surrendering may result in lenient treatment.
As a result of the police action, trading of shares for two companies under Chau’s control, SunCity Group and its subsidiary Summit Ascent Holdings, has been suspended on the Hong Kong Stock Exchange. This suspension is in effect from 29 November until the release of an announcement related to news coverage, as stated in a filing with the exchange.
Chau, who initially operated as a junket operator, has expanded into various businesses, including resort development.
On 27 November, the Macau Judiciary Police issued a separate release stating that 11 individuals had been arrested as part of an ongoing investigation that began in August 2019. The investigation involves a criminal syndicate that allegedly exploited a VIP junket business in Macau casinos to recruit mainland Chinese residents for illegal online gambling through offshore platforms. The proceeds from these activities were laundered via the junket accounts using illegal banks. Computers, internet servers, electronic storage devices, and over HK$3 million in cash were seized during the operation.
The Judiciary Police mentioned that the arrestees confessed to the syndicate’s operation of gambling websites or telephone betting activities overseas but refused to cooperate in other investigations. The 11 individuals have been transferred to the Public Prosecutions Office and will face charges related to their involvement in a criminal syndicate, illegal gambling, and money laundering. Additional follow-up investigations are underway.
This investigation is taking place during a consultation period regarding the future regulatory model of Macau. The government of the Special Administrative Region is considering making several changes to the existing framework, including stricter regulations on junkets. These changes align with Beijing’s efforts to limit the gambling activities of mainland Chinese residents abroad.
