Sun City, the dominant junket aggregator in Macau, has been named in an official Chinese media report as being a major operator of online-gaming networks penetrating the Chinese mainland. The report, by Economic Information Daily, which is ultimately controlled by Xinhua, is detailed. It sent an undercover reporter to Macau and looks into what Sun City is doing in its online-gaming business. The results are embarrassing for its owner, the flamboyant Alvin Chau, as well as everyone associated with him, including officials.
The amounts involved are staggering, allegedly more than 1 trillion yuan annually (US$125bn). Read more here in Chinese.
Sun City has denied the reports’ facts, saying they do not operate such an online-gaming business. Forgive us our cynicism, dear reader, but this sounds kind of like the drug mule telling the officer he doesn’t know how the cocaine packets got into his pockets. Read more here (in Chinese).
Grab some popcorn and draw up a chair. It is going to be entertaining to see how the Macau casino regulators distance themselves from this controversy, especially as Macau is in the middle of a political transition to the next Chief Executive, who only takes office in December.