Junket scandal hit casino stocks

    Published in: Latest IntelligenceConcern recent scandals surrounding two junket operators may further slow VIP revenue sent Hong Kong-listed gambling stocks reeling this week.  The sector, key to drawing in China’s high-rollers to Macau and increasingly Asia’s casinos, was shaken amid reports the principal of Kimren, a smaller operator, may have absconded with about HK$8 ($1 billion) to HK$10 billion. The problem was further exacerbated by reports the wife of one of the owners of Neptune Group was detained in Hong Kong with liquid assets to the amount of HK$200 million.  In a note commenting on the incidents, Goldman Sachs said the misappropriated funds come from a side-betting pool and therefore won’t be reflected in reported VIP GGR numbers. “This said, we believe this incident may affect junket operators’ ability to raise more new capital from partners or private individuals. Together with more stringent investigation on money laundering, we believe junkets may turn more...

    Intelligence Articles is a premium content section developed for AGB members only featuring in-depth articles on relevant items of interest across the multiple Asia Pacific Gaming jurisdictions. To continue reading, subscribe now.