Alvin Chau Cheok Wa, the former boss of the now-defunct Macau junket operator Suncity Group Ltd, will be sentenced on January 18, 2023. Chau, along with 20 other individuals charged with illegal gaming, fraud, and money laundering, will learn their verdicts on the said date, as announced by presiding judge Lou leng Ha.

Chau Maintains Innocence

Chau and his co-defendants allegedly ran an illegal gambling operation involving under-the-table “multiplier” bets from 2013 to 2021. The scheme had allowed Chau and his group to avoid paying approximately HKD8.26 billion (US$1.05 billion) in tax to the Macau government. 

The former junket mogul denied the allegations, saying there was no need for Suncity to engage in such illicit operations for financial gains as it was making “huge income” from its legal junket business. 

Macau Casinos Seeking Compensation from Chau

Among the plaintiffs in the case are existing casino operators in Macau, including MGM China Holdings Ltd, Wynn Macau Ltd, Galaxy Entertainment Group Ltd, Sands China Ltd, and SJM Holdings Ltd. The companies claim to have incurred massive revenue losses stemming from the under-the-table betting operations and are seeking millions of US dollars in civil damages.

Chau was arrested by Macau authorities in November 2021 and has been in police detention since. Following Chau’s arrest, Suncity ceased its junket operations across the region. 

Jeju Island in South Korea is among Asia’s top casino destinations, attracting a huge number of visitors from neighboring countries each year. Traditionally, most of the tourists traveling to Jeju were Chinese nationals, but things changed when COVID-19 hit. 

Drop in Chinese Visitors Expected

With pandemic-related travel restrictions still in effect in Mainland China and with the Chinese government now getting tougher on casino gambling, the government in Jeju recognizes the need for it to determine other potential tourist source markets. 

Ko Byoung Hun from Jeju’s Casino Policy Division said among their tourism strategies at the moment is to attract visitors from Japan, Taiwan, and the South Asian market. In particular, they’re targeting the wealthy “baby boomers” from Japan and are also banking on Jeju’s junkets to boost visitor numbers for the short term.

Jeju’s casinos are open only to foreigners, with locals not allowed to engage in any gambling activity at all of the properties. There are currently eight casinos operating on the island; however, some of them have remained closed since the pandemic. 

Jeju Govt. Striving to Address Local Anti-Casino Sentiment 

Casino operators have called on the Jeju government to relax some casino restrictions to drive more visitors to the island, but Mr. Ko said any changes to the law should be made with the public in mind, citing the ongoing anti-casino sentiment among locals.

All six incumbent casino concessionaires in Macau will continue to operate in the region for the next 10 years after they were listed as “provisional winners” in the new gaming tender process. The preferred bids were announced during a press briefing on November 26, 2022.

MGM China Gets Highest Score

Topping the list was MGM China Holdings Ltd, followed by Galaxy Entertainment Group Ltd. The four other existing casino concessionaires in Macau, Sands China Ltd, Melco Resorts and Entertainment Ltd, Wynn Macau Ltd, and SJM Holdings Ltd were also on the list. 

Each of the six casino concessionaires was awarded a provisional license under an executive order signed by Macau’s Chief Executive Ho lat Seng. 

Their proposals met all of the requirements for securing a new 10-year gaming concession contract in the region, according to Secretary for Administration and Justice André Cheong Weng Chon, who serves as head of a special commission supervising the gaming tender procedure. 

Genting Malaysia Unsuccessful 

As earlier predicted by investment analysts and gaming experts, Genting Malaysia’s subsidiary GMM Ltd failed in its bid for a Macau casino license. Mr. Cheong was asked by some members of the media about the possibility of Genting securing a partnership with any of the six incumbent casino concessionaires, but he refused to answer, saying it was a “hypothetical question”.

Japan’s integrated resort (IR) plans will enable the country to enjoy the same benefits currently experienced by Singapore through its two casino resorts, according to asset management services provider Schroders Capital.

IRs to Attract More Inbound Visitors, MICE business

In its latest report, the company said Japan’s IR complexes would draw significant tourist numbers just like Singapore’s Marina Bay Sands and Resorts World Sentosa. 

Additionally, the Japanese IR industry would also provide a huge boost to the country’s meetings, incentives, conferences, and exhibitions (MICE) sector, according to Andrew Haskins, who works at Schroders Capital as the Head of Strategy and Investor Advisory, Real Estate APAC.

Citing data from the Japan Tourism Agency, the report said that in 2019, prior to the pandemic, inbound visitors accounted for 37 percent to 39 percent of total guest stays in three of Japan’s largest tourism markets – Tokyo, Kyoto, and Osaka. The country’s tourism and hospitality sector is recovering well, though current figures are still below 2019 levels. 

Japan will see a major rebound in inbound visitor numbers as the country recently eased its travel restrictions. The “continuing weakness” of the yen will also lead to more tourists visiting the country, the report said. 

Japan’s Hospitality Sector Recovering Fast

It also noted that while Singapore is currently ahead of other Asia-Pacific countries in the hospitality recovery race, Japan will not be far behind, and the proposed IRs have the potential to elevate the numbers.

Osaka and Nagasaki both submitted their IR district development plans to the national government in April 2022. The proposals are still being considered by a review committee.

A court in New Jersey has been granted a 90-day stay concerning a decision to throw out a state law that would give huge tax breaks to Atlantic City casinos. 

Judge Grants 90-Day-Stay Pending Appeal

On August 29, 2022, Superior Court Judge Michael Blee ruled that changes to the casino payments-in-lieu-of-taxes (PILOT) law which were passed and approved by the state in 2021 were enacted on dubious grounds and were in breach of the state Constitution as the amendments were made in favor of the industry and not for a public purpose. 

Non-profit organization Liberty and Prosperity filed the lawsuit challenging the constitutionality of the PILOT law amendments which would see casinos enjoy tens of millions of dollars in tax breaks by cutting out online gambling and sports betting revenues from calculations of gross gaming revenue (GGR).

In September, the state filed a motion for a stay of the ruling as it appeals the case to the Supreme Court. 

Status Quo Must be Maintained as Parties Await Decision from Higher Court

Granting the 90-day-stay, Judge Blee said the status quo must be maintained until a higher court gives its decision on the constitutionality of the 2021 legislation, adding that the state was right to ask for a stay as the case revolves around a constitutional issue.