Macau steps in over unpaid Suncity staff

Macau's labor department will set up services to provide Suncity Group's (1383) staff with support and consultation today after Macau's biggest operator of junkets reportedly ceased operations last Friday and failed to pay salaries to its staff.

The Gaming Inspection and Co-ordination Bureau and Labour Affairs Bureau are highly concerned about the impact of the Suncity Group incident on the labor relations of its employees, and the two departments have been in close contact, understanding and following up with those responsible for the company in question since the incident occurred, according to a joint statement.

Suncity Group's junket arm said that the operation has been closed since casinos are cutting ties with it while the firm has to comply with the legal procedure to shut down, said an internal memo that was circulated yesterday.

It was reported that the closed company did not pay its employees with their last month's salaries, resulting in the Macau authority's stepping in.

Alvin Chau, Suncity's CEO as well as the founder of Macau's biggest operator of junkets that bring in high rollers to play at casinos, was arrested last month over alleged links to cross-border gambling

Following his arrest, Chau's junket operations closed all of its VIP gambling rooms in Macau.

Chau's junket operations, also called Suncity, are estimated to have accounted for a quarter of Macau's gambling revenue.

The closure of Chau's gaming rooms is expected to exacerbate pain for casino operators in the gambling hub and is expected to lead to closures in parts of Suncity Group such as restaurants, bars, and hotels.

Trading in shares of Suncity Group and its unit Summit Ascent (0102) were suspended on Thursday, pending a statement in relation to a possible loan default.