Macau-based junket operator Suncity Group has confirmed they are shutting their VIP gambling rooms located at The Star’s Sydney casino.
The move could be seen as Suncity’s decision to minimize its presence in the Australian market before it completely pulls out.
According to the reports, the decision to shut VIP gaming rooms has been a mutual decision taken by both Suncity and Star Entertainment.
While Suncity is the biggest aggregator of High-rollers from China, Star Entertainment is the second-largest casino operator in Australia.
The announcement has also been linked to the ongoing investigations into the crown resorts, which has been allegedly involved in money laundering with Chinese mafias and also facilitating fast-track visa approvals for high-rollers from China.
Star Entertainment Group CEO Matt Bekier also said that while they are now closing Suncity operated VIP gaming rooms, they are working with other Junket operators from across the globe. Reports have also emerged that Alvin Chau, head of junket operator Suncity was recently barred by the Department of Home Affairs from entering Australia due to an on-going investigation.
Suncity has also been facing heat back in Macau as it was accused by the state-run Chinese media of facilitating online gambling operations for customers from Mainland China at casinos based in neighboring countries including Cambodia and the Philippines.
In a recent report, Star Entertainment’s VIP revenues have taken a hit due to ongoing investigations into junket operations. On Friday, the Star Entertainment posted that because of decreased revenue from VIP high-rollers its normalized net profit after tax is down by 8.4 percent to $224 million. The company owns and operates casinos in Sydney, Brisbane, and the Gold Coast.
Moreover, earlier in June this year, Star announced to cut 400 jobs as the VIP spending sunk at their casinos.