The Chinese unit of Las Vegas Sands Corp is reportedly increasing its scrutiny of casino junket operators in Macau. Bloomberg described junkey operators as people or entities that bring wealthy gamblers from mainland China. A person familiar with the decision said that the junket operators are requested to provide additional information about their businesses to the casino as the company seeks to curb opportunities for illegal activities like money laundering. The persop, who refused to be named as the moves are not for the public, said that the move will shake out middlemen, who account for two-thirds of the world's largest casino hub's betting.
The move would most likely be inspired from Sheldon Adelson-founded Sands' decision to comply with US regulators and prosecutors to prevent money laundering activities. Bloomberg said that the move, however, could alienate several high rollers or offend local authorities who oversee the casino industry in Macau. As Sands seek to enforce such move, the casino establishments in Macau had been stepping up in their efforts to attract players in the mass markets on their own, hoping to reduce their dependency on the junket business.
Sands spokesman Ron Reese said, "Our chairman and board expect the company to set the standard for ethical performance in our industry. Across every spectrum of our business, we look for partners who share and abide by that goal."
According to a statement in August last year, Bloomberg said Sands had agreed with the US Justice Department to forfeit their proceeds worth $47 million from a high roller in Las Vegas, who was found to have links to international drug trafficking. Moreover, it has been said that the Nevada Gaming Control Board is increasing its oversight of the Macau operations of US casino companies, and had sent teams for monitoring Sands, MGM Resorts International and Wynn Resorts Ltd. Current rules in Nevada and other local jurisdictions dictate the monitoring of the activities of its licensees elsewhere in order to guard the casinos against violations that may be committed and will essentially damage the reputation of the markets.
