Dore Entertainment Co Ltd will be shutting down a VIP room at the Wynn Macau, according to the most recent reports out of the gaming city. The Macau junket operator operates three VIP rooms at the casino, with two now remaining after the closure. However, the Macau Daily Times is reporting that the remaining rooms will close as well.
Speaking to GGRAsia, a spokesperson for Wynn Macau confirmed that Dore will be closing one VIP room on the 31st of October. The decision was made by Dore as an effort to scale down the business operations.
Just last month, Dore reported that they were victim to internal fraud by a then employee, which happened when a cage manager supposedly used her power to complete unauthorized actions without Dore being aware.
Police had received 49 complaints related to the unauthorized actions and these people demanded they be allowed by Dore to withdraw their cash deposits that were allegedly placed with Dore.
Dore has not released the actual amount that the employee was able to steal but the firm did state that it was over HKD100 million. It is not uncommon for Macau junket operators to raise capital for the rolling chip programs from?private investors. The capital will be at an above market interest rate. The capital is then?used for lines of credit to VIP Players.
The issue with fraud at Dore managed to scare away investors which has led to the operator deciding to shut down a VIP room at the Wynn Macau. A gaming analyst believes that due to the fraud, investors slowly began asking for cashouts, beginning with small investors?and spreading?to the premium investors?who support a substantial portion of ?junket liquidity.
With the case involving Dore, authorities in Macau decided to create new accounting guidelines for the junket industry. Operators now have to compile accounting reports on a monthly basis, beginning next year. Personnel information will also have to be provided to gaming regulators to show?who is in charge of the financial operations of the junket.