Suncity closes VIP gaming rooms - sources
Suncity Group has closed all of its VIP gaming rooms in Macau after the arrest of its CEO.
That's according to two sources close to the matter Wednesday (December 1).
One source said closing the company's VIP rooms would lead to a cut of around a third of its Macau headcount.
Suncity did not respond to a request for comment.
It comes as its shares were suspended from trade for the second time in three days.
On Sunday, Suncity CEO Alvin Chau was arrested over alleged links to cross-border gambling and money laundering.
Chau is also the founder of Macau's biggest junket operator which is estimated to make up around a quarter of the region's gaming revenues.
Chinese authorities have taken a zero-tolerance approach to the promotion of gambling in mainland China, where it is illegal.
The closure of Suncity's gaming rooms has only made the pain worse for Macau-listed casino stocks.
Analysts say Wynn Macau is the casino operator most reliant on Suncity's gaming rooms - and its shares have been particularly hard hit.
The stock fell 8% on Wednesday. This week alone it has lost 18%.
Suncity stock plunged 48% on Tuesday (November 30) to a record low, valuing the firm at $113 million.
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