Inside Asian Gaming

January 2013 | INSIDE ASIAN GAMING 11 be left alone.” The smart money is on Broken Tooth staying out of trouble. “I don’t anticipate a return of Macau’s violent past, as Macau casinos are growing and the pie is getting bigger,” said Au Kam San, a lawmaker who grew up in the city. “The Chinese government has made it clear that it wants stability in Macau. It can take away everything it granted if these guys don’t behave.” Indeed, according to the Post , “Sources said officials from the central government’s Macau liaison office visited Mr Wan [before his release] to tell him to stay out of trouble.” At the top of Beijing’s agenda is the maintenance of social stability following the appointment of the Communist Party’s new leaders in November. While Mr Wan was able to run rings around Macau’s colonial administration for years, he is no match for the Chinese government, which would have no qualms about throwing him back behind bars if there was any public hint of him disturbing the peace. Also, in a pre-emptive strike a month prior to his release, a sting operation resulted in the arrests of a number of his former associates on suspicion of planning to commit murder. Among those picked up was Artur Chiang Calderon (also known as Chan Yuet Bo), a former police officer and Mr Wan’s right-hand man. Yesterday’s Man “Wan Kuok Koi is yesterday’s man,” said SteveVickers, who runs Vickers and Associates, a Hong Kong-based risk consultancy. “Whilst he remains connected with his previous gang members, there is just no room for the ‘Wild Bunch’in Macau anymore.” The owner of a leading Macau junket operator added: “The world has changed for Macau. The new world requires brains, not fists. We all have to adjust ourselves accordingly. Furthermore, we need to follow the directives from Beijing, or follow those who went to jail.” During his incarceration, Mr Wan missed out on most of the spoils of Macau’s casino boom, which saw his former triad rivals become vastly more wealthy and powerful thanks to their close connections to the city’s leading junket operations that dominate the VIP gaming business, which constitutes around 70% of Macau’s total casino revenue. According to a former police officer with close ties to the industry: “If you look down Junket Licensing in Macau Some sources claim casino regulators have recently stepped up the scrutiny of applications for junket licenses to head off attempts by Wan Kuok Koi to re-establish his influence in the VIP casino business. Others take a more measured view, pointing out that the junket licensing system is not the only weapon available in the fight to ensure business is kept clean. An analyst with long experience of Macau gaming says: “The junket licensing process is not intended to do more than screen out people with serious criminal backgrounds and people who may transgress in a serious fashion once they have been licensed. “The junkets are not concessionaires; their relationship with the concessionaires is contractual. That is, no contract, no business with a concessionaire. “Like any contract, it is a matter for the parties to be satisfied that they are willing to assume mutual obligations. The concessionaire should have a secure hold on its concession, and the junket operator should conduct itself in a manner which does not compromise the concessionaire.” He adds that a number of Macau’s large junkets—for example, AERL, Neptune and Dore—have associated companies which are listed on the Hong Kong Stock Exchange. “This has given them access to capital and the ability to make money in a manner not previously available to them. I expect that they will evolve into good corporate citizens; there is a lot at stake if they don’t.” the list of licensed junket operators in Macau, sure, you will not find one known triad among them. But I can assure you, none of the big junket operators in Macau could operate unless they were connected to the triads. “We are talking the traditional triad operators in Macau, plus the Sun Yee On and Wo Hop To from Hong Kong, and others. There’s just too much money washing about for them not to be involved. It’s a proxy system, so it’s no surprise that there is quite a degree of concern about the release of Wan Kuok Koi.” One of the principal reasons is mainland China’s currency controls, which limit the amount of cash citizens can take out of the country to 20,000 yuan—US$3,210—a day. According to one investment analyst, “It’s not possible, in practical terms, to do away with the triads when it comes to Macau’s casino industry, where dubious money transfers are commonplace. They do all the dirty work the casino operators can’t do. Another reason you need them is that you sometimes need to go hard to collect FEATURES During his incarceration, Mr Wan missed out on most of the spoils of Macau’s casino boom, which saw his former triad rivals become vastly more wealthy and powerful thanks to their close connections to the city’s leading junket operations.