Signs of corruption in Macau casinos

| December 14th, 2012

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In recent years casino tourism in Macau has exceeded that of every other area of the world, including famous Las Vegas, NV. In 2011, Macau pulled in five times the revenue of Vegas after collecting $33.5 Billion in revenue. Macau is now considered to be the new gambling Mecca of the globe, a title that Las Vegas held for decades. Unfortunately, Macau’s new status does come at a price as the seeds of corruption have begun to creep up in the globe’s new gambling Mecca.

Per an article on wantchinatimes.com, Mainland and Macau police recently arrested employees from various different gambling agencies. The agencies known as junket operators offer loans to Chinese gamblers to circumvent laws that limit how much money they take out of the country. At present, Chinese players are only allowed to take a maximum of $50,000 outside of Mainland China

The report also claims that these junket operators may have been tied to the disgraced Bo Xilai and that he was using Macau as a way to funnel money out of China. Employees of these junkets have been reported to have been detained by police and questioned about a corruption case involving "a former senior Chinese official."

According to a report on VancouverSun.com, David Star, Neptune, and Sun City are among some of the junket operators that are involved in the apparent funneling of funds out of China. In addition, four junket operators in Macau are under investigation but were not named.

Junket operators are many times linked with triad criminal groups per the vancouversun.com report and often make loans well in excess of the legal limits in place. The loan plus interest and facilitation fees must then be repaid in China. However, the money is loaned out in the form of casino chips and that money can then be put into either a Hong Kong or Macau bank account and then transferred anywhere in the world.

The arrests come as a result of a new China initiative that is trying to prevent excessive amounts of money from leaving the country. Last year alone, close to $500 billion left the country via illegal means.

Quite often, money leaves the country in the way of overpayment for goods or services with the overpayment amount being transferred into a bank account outside China. Through September of this year $225 Billion left China, prompting China’s new leadership to take action.

In addition to the recent arrests, new guidelines have been distributed to junket operators to help curb future oversight. Among these new guidelines are requirements of accurate monthly lists of loans, players the loans were made to, and what establishments the players used the money at. Also, money that comes in or out of a junket exceeding $500,000 must be reported within 24 hours.

What effect the new regulations will have on the overall problem of money being transferred out of the country remains to be seen but it is a solid sign that the new leadership is taking the problem seriously and working to fix the issue.

11 Comments | Leave a comment | Comment feed

  1. voiceofhomer says:

    There are NO winners in Macau casinos.

    And not in Vegas neither.

    So what, Chinese have been losing money in the US for a long time.

    Now let them lose it in China, at least Macau gets some tax money out of it.

    • Cleo says:

      so what? Gambling profits are “blood money” in Chinese culture – it’s sadistic. And when you walk into a casino, you are in a place that has no mercy, cares nothing for you and will allow you to lose your children’s future in one roll of the dice. There’s no trust fund set up for addicts, there’s no limit based on their fingerprints – there is no percentage of their losses being held back for a special fund to ensure that their children aren’t starving for milk money and pencils for school – this actually happened to the father of a friend of mine whose mother was addicted to gambling.

      My father went down to the basements for the first time to try to save his father who never cared for him and by doing so, my father came onto the radar of the wolves who never forgot that he was uppity.

      So thank you, China for fighting corruption. Thank you, Canada, for rejecting immigration applications of anyone associated with Stanley Ho. Thank you, State of New Jersey, for urging MGM to divorce themselves from Pansy Ho otherwise give up the Borgata Casino.

      Integrity over money because we are dealing with gangsters. Gangsters destroy lives and have no remorse. What are we doing making them feel good about themselves?

      • Angelus88 says:

        that’s not entirely right.. Here where I live.. the casino actually rejected a friend of mine to enter, due to the fact that he went there too many times, and they are afraid of him loosing everything he has.. It depends on where the casino located is i think.

    • Angelus88 says:

      I won 10 euros before in a casino. Never went back inside. I think im qualified to be called a “winner” in some sense.=D

  2. Cleo says:

    You think Pansy Ho is now some ambassador of CULTURE because she is GIVEN the chair of French art exhibitions et al.?

    What if Stanley Ho never stopped being a hanjian Japanese collaborator and has been a frontman for Japan this WHOLE TIME? Do you know what a heartbreak this is for people worldwide not just the Chinese? American boys DIED fighting the Japanese. Non Chinese women were raped to death by the Japanese in Hong Kong for “three years and eight months” beginning December 8, 1941 and the British soldiers witnessed some of those sexual assaults from their hospital beds.

    Understand that crime is organized and connected because the Truest of Evil sees potential minions and they collect them.

  3. Cleo says:

    And why the hell did Deutsche Bank invest in Emerson Radio AFTER it has already gone to pot thanks to Grande Holdings?

    What does Deutsche Bank have to do with any of this? Why does DB keep popping up?

    Japan and Germany – soulmates to the end who think that because they have different ethnicities

  4. Cleo says:

    And why the hell did Deutsche Bank invest in Emerson Radio AFTER it has already gone to pot thanks to Grande Holdings?

    What does Deutsche Bank have to do with any of this? Why does DB keep popping up?

    Japan and Germany – soulmates to the end who think that because they have different ethnicities, they effectively play everyone as monkeys in the middle. No one would ever suspect that German spy satellites launch from the Pacific side of Japan where no one seems to be watching. No one would ever think that the Germans would want to see the British royal family in their private moments as much as Akihito’s family enjoys the daily. nightly,, 24-hour satellite feed.

  5. Cleo says:

    There’s something very wrong with the Portuguese:

    [On his companies early success acting as a middleman between the Macau authorities and the Japanese military] The company’s objective was to provide food for Macau during those years and eight months of war. I had to start learning Japanese and Portuguese, because my job was to barter between the two. The Portuguese government supplied us with all the surplus they could afford to give away… and I exchanged all that with the Japanese authorities, in the name of the company, for food from the Mainland.
    Stanley Ho

  6. Cleo says:

    isn’t there some way for someone who loses everything in the casinos to receive a trust fund with ten percent of their money they lost held back and sort of refunded to them but held in trust for their children. I can’t believe that I know not only children but the grandchildren of gambling addicts who lost their descendants’ futures at the gambling tables – it’s a hard way to learn that we live in an unsympathetic world and your addiction will be exploited to the hilt – even to have pawnshops in Macau enabling your financial ruin.

  7. Angelus88 says:

    yes.. unfortunatly the world has become such an unsympathetic place. You can look back to every comment that has been posted on this website. Majority of them will be about hatred and ranting instead of healthy discussions. Nobody cares, nobody ever will care these days.

    And about the trust fund thing.. the money is lost fair and square. What your saying is like “give me back my money for the food i just ate, because im poor”. Although i understand why you as for a trust fund of sort, it’s not how the economic system works.

    Best thing i can find is this:
    http://www.chinatimes.nl/en/news/the-netherlands/217-2011-09-01-14-38-45

    U can get denied access in the casino if requested. You can’t give back money to someone that is willingly or knowingly to loose all the money. Only those who wish to stop can be helped.

  8. Tony Frank says:

    Inspiring!

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