China's Gambling Crackdown: Junket Operators Face Bank Account Closures

China's intensified crackdown on gambling is causing significant disruptions for junket operators in Macau. The government's primary concern is the cross-border flow of funds related to gambling, which it considers a national security risk. This has resulted in thousands of bank accounts being frozen, with 229 billion yuan ($32.95 billion) seized, according to Reuters news agency.

AG Asia Entertainment has ceased operations and given customers a deadline for withdrawing deposits. The junket sector has been hit hard as China seeks to cut off the financing channels belonging to the online gambling and cryptocurrency lenders. Anthony Lawrance, MD of consultancy business, Greater Bay Insight, said that 'China clearly intends to cut out these middlemen and gain better control over the outflows of renminbi (yuan) through Macau.'

Last month saw a run on Macau’s biggest junket operator, Suncity, with a reported 900 players withdrawing funds in just one weekend in July. Suncity's Chairman Alvin Chau claimed they had 'enough cash to cover bad debts and deposits.' AG Asia 'targets Chinese gamblers via online operations in the Philippines.' Macau's gaming sector has seen a close to 95% year-on-year drop in July revenues, amounting to $168 million.