Suncity CEO Alvin Chua has stepped down after being accused of allegedly orchestrating illegal cross-border casino tourism operations internationally. Gambling is illegal in mainland China, but authorities there also prosecute those who lure Chinese gamblers to offshore casino hubs like Macau and the Philippines.
Sunset for Suncity?
After repeated warnings about impending criminal charges against Suncity, investors began selling off their shares in the company. This led to Suncity stock plunging to half its original value.
Alvin Chau founded Suncity in 2007 and is now distancing himself from the company as he is about to face criminal charges of unlawfully advertising gambling people in mainland China as well as operating illicit online casino operations.
Chau announced he would resign from the posts of Executive Director and Chairman of the Board of Suncity, according to a statement by Suncity.
Wenzhou prosecutors accuse Chau of engaging in proxy betting, where gamblers bet on live casino games online while seated in a land-based casino in another country. The gambler tells the proxy how to wager and play through a mobile device. These activities are illegal in the Philippines and Macau.
Chau used his company Sun City Gaming Promotion Company Limited (SCGPCL) to facilitate the proxy betting operation. Suncity Group claimed it has no legal responsibility for activities initiated by SCGPCL.
In addition, Chau faces charges of luring Chinese citizens abroad for gambling purposes. Gambling is not illegal in places like Macau and the Philippines, but Chinese authorities take a hard stance on efforts to promote gambling tourism targeting mainland China.
Alvin Chau founded Suncity in 2007 as the main investor and sole supporter of the company for years. As the company expanded operations internationally, he became a billionaire in the process.
Chau continued to fund the lion’s share of overseas casino tourism investment personally, and Suncity Group will feel the loss of capital after Chau leaves.
Chau has been funding the group’s ongoing casino-resort developments in the Philippines, Vietnam, and Russia. According to a press release by Suncity, “The Group is dependent on the financial support from Mr. Chau and his related companies,” Suncity declared. “In the event that the Group loses the support of Mr. Chau for whatever reason, the financial position, business, and operation of the Group will be adversely affected.”
Suncity Group representatives claim they are not responsible for the actions of Alvin Chau or his subsidiary companies.
Disclaimer: All images are copyright of their respective owners and are used by USA Online Casino for informational purposes only.