According to a report from Credit Suisse, a principal of a small junket in Macau absconded with between 8 billion and 10 billion Hong Kong dollars ($1 billion to $1.3 billion). The amount is small relative to the Macau gaming market, but can impact market sentiment and slow the velocity of capital and the VIP business according to the report.
Credit Suisse also cited the wife of Cheong Chitai, owner of Naptune Group, one of the top three junkets in Macau, who was detained with liquid assets of 200 million Hong Kong dollars frozen by the police. The Next Magazine article detailing the arrest also said that investigators compiled a list of "20 junket operators who are allegedly assisting corrupt mainland officials in money laundering and around 40 people connected with Neptune Group have allegedly been detained or questioned by HK police since the detention of Mrs Cheong."
Junkets service the VIP segment in Macau, which contributed to about two-thirds of total revenue and about 35% of gaming profit in the region in 2013.
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TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: