When Chinese businessman Wang Xi first gambled at Sheldon Adelson’s Marina Bay Sands casino in Singapore, he hit the jackpot, winning $3.7 million. After more wins in later trips, his luck turned sour and he racked up millions in losses. After one particularly tough day in the high-roller room, he threw a water glass at a staff member, and brought his father in to review his accounts, according to documents seen by Bloomberg.
The family probe yielded a windfall of a different sort. In a 2019 lawsuit, Wang claimed the Marina Bay Sands had transferred S$9.1 million ($6.9 million) of his money to third parties in 22 separate transactions without his authorization. The forms for wiring his money weren’t signed by him and appear to have been forged, the originals destroyed, according to the lawsuit. The casino settled the case in June and repaid Wang, without admitting wrongdoing.
Wang’s suit and similar ones shined a light on the murky world of third-party transfers that casinos and gamblers use to settle accounts. Since gambling is illegal on the mainland, so-called junket operators have stepped in to facilitate it, especially in Macau, a favorite for Chinese gamblers. It isn’t easy for Chinese citizens to wire money abroad, so in addition to booking five-star hotels and private jets, junket operators often act as an informal bank, providing gamblers with credit, stashing winnings, and settling losses with casinos and other bettors.
In Singapore, Marina Bay Sands prohibits the use of these junkets, concerned that the untraceable flow of money opens the door to money laundering. Instead, the casino allows patrons to transfer money to other gamblers they know, covering losses or sharing winnings. Think of it as an informal lending club among millionaires. For the casino, the so-called Letters of Authorization seemed like a way to avoid the junkets while still facilitating gambling by the “whales” who generate so much profit for its business.
Third-party transfers, which are legal, have been used by the casino for years, according to people familiar with the operations. An internal investigation showed 3,419 transfers worth S$1.64 billion were shuffled among gamblers by casino employees from October 2010 through December 2018.
More at https://tinyurI.com/ybwrueoe
The family probe yielded a windfall of a different sort. In a 2019 lawsuit, Wang claimed the Marina Bay Sands had transferred S$9.1 million ($6.9 million) of his money to third parties in 22 separate transactions without his authorization. The forms for wiring his money weren’t signed by him and appear to have been forged, the originals destroyed, according to the lawsuit. The casino settled the case in June and repaid Wang, without admitting wrongdoing.
Wang’s suit and similar ones shined a light on the murky world of third-party transfers that casinos and gamblers use to settle accounts. Since gambling is illegal on the mainland, so-called junket operators have stepped in to facilitate it, especially in Macau, a favorite for Chinese gamblers. It isn’t easy for Chinese citizens to wire money abroad, so in addition to booking five-star hotels and private jets, junket operators often act as an informal bank, providing gamblers with credit, stashing winnings, and settling losses with casinos and other bettors.
In Singapore, Marina Bay Sands prohibits the use of these junkets, concerned that the untraceable flow of money opens the door to money laundering. Instead, the casino allows patrons to transfer money to other gamblers they know, covering losses or sharing winnings. Think of it as an informal lending club among millionaires. For the casino, the so-called Letters of Authorization seemed like a way to avoid the junkets while still facilitating gambling by the “whales” who generate so much profit for its business.
Third-party transfers, which are legal, have been used by the casino for years, according to people familiar with the operations. An internal investigation showed 3,419 transfers worth S$1.64 billion were shuffled among gamblers by casino employees from October 2010 through December 2018.
More at https://tinyurI.com/ybwrueoe
