The Impact of Casino Junkets: High Roller Settles Lawsuit with SkyCity Over Missing $4.84M

• Chinese high roller alleged junket fraud after winning millions
• SkyCity and junket operator settled out of court this week
• Casino transferred chips without authorization, lawsuit claimed

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The high-stakes world of casino junkets often brings intense legal scrutiny, a reality underscored by a Chinese high roller who made headlines after suing Australia’s Sky City Adelaide and two operators. Following a legal battle initiated in 2021, the dispute concerning the alleged misappropriation of approximately A$4.84 million (US$3.1 million) in winnings has been successfully resolved. This case serves as a stark reminder of the intricate complexities and inherent risks involved when navigating the sophisticated landscape of casino junkets and large-scale gambling.

Multimillionaire Linong Ma, from Hong Kong and Shanxi province, China, initiated legal action against the casino and junket operators Xiongming Xie and Zhuangqian Fang following a gambling junket to SkyCity in May 2019, which had been arranged by Fang. Notably, Xie operated the junket under Fang’s license, leading to complex legal implications.

Alleged Organized Crime Links

The lawsuit further alleged that Xie had connections to organised crime, was barred from all casinos across Australia, and held substantial gambling debts during that time. Media reports previously connected Xie with Tom Zhou, an organised crime figure linked to a variety of illicit activities, including money laundering and human trafficking.

Ma’s allegations included a particularly serious claim that the victim in this case was “stabbed … almost to death.”

What Could Go Wrong?

On May 21, Ma visited SkyCity accompanied by a junket VIP hostess known as “Ms. Goh” in court documents. Typically, Chinese VIPs prepay junket operators by bank transfer before they travel, enabling them to obtain credit in the form of non-negotiable “rolling chips” at VIP casino rooms. Ma initially withdrew A$400K (US$257K) in chips to gamble on baccarat, only to lose A$370K (US$238K).

However, when he attempted to cash out, he was informed that the transaction could not be executed until the following Monday. Due to personal commitments in Hong Kong, where he needed to attend his son’s graduation, SkyCity staff stored his chips in a safety deposit box, assuring him that only he would have access to them.

Unauthorized Transfer

Ma intended to return to Adelaide in a few weeks to claim his winnings; however, on May 29, the casino transferred his chips to Xie, resulting in only A$1.46 million being returned to Ma. Consequently, Ma sued SkyCity for negligence and breach of trust and Xie and Fang for fraud regarding the whereabouts of his missing winnings.

Ultimately, SkyCity and Xie reached an out-of-court settlement this week for an undisclosed amount, according to reports from local news outlets. Meanwhile, the Supreme Court of South Australia awarded a ruling against Fang, who did not participate in the mediation process.

Key Takeaways

• The case underscores the potential pitfalls that high-rollers face in the gambling industry.
• It reveals the complexities involving junket operators, many of whom can be linked to criminal activities.
• High-stakes gambling can involve significant risk, especially regarding the handling of funds.
• Legal resolutions can vary greatly, with some cases settling before reaching the court.

In summary, while high-stakes gambling may seem glamorous, the reality can involve layers of legal and ethical complexities, as illustrated by Linong Ma’s lawsuit. This situation serves as a cautionary tale for future high-rollers, highlighting the importance of understanding the associated risks, particularly when dealing with junket operators. Those venturing into this world should remain vigilant, as unexpected issues can arise and lead to significant financial loss.