Credit Suisse warns of Macau casino liability over HK$30 billion to HK$50 billion in frozen junket deposits

April 22, 2022 Macau Crime & Legal

Global investment bank Credit Suisse has warned that Macau’s concessionaires could be liable for “sizeable agents claims” following the demise of leadings junkets Suncity Group and Tak Chun Group, estimating between HK$30 billion and HK$50 billion (US$3.8 billion to US$6.4 billion) in deposits remains frozen.

Such tail-end risk was highlighted by Credit Suisse analysts Kenneth Fong, Lok Kan Chan and Sardonna Fong in a Thursday note and follows a November ruling by Macau’s Court of Appeal which found Wynn Macau Ltd and junket promoter Dore Entertainment Co Ltd jointly liable for repayment of a HK$6 million (US$770,000) debt owed to a VIP customer.

The ruling, along with a similar case against MGM China in February, has been widely accepted as evidence that casino operators will be held liable for any debts left by defunct junkets. This development has since been confirmed by the Macau SAR Government in amendments to the city’s gaming law, which also make it illegal for junket representatives to accept player deposits unless for the specific purpose of purchasing gaming chips obtained by the promoter from the associated concessionaire.