Union urges inquiry into Las Vegas casinos, Macau junket operators

The International Union of Operating Engineers is calling on Nevada gaming regulators to investigate the increasingly profitable business relationship between Las Vegas-based casino companies and junket operators in Macau.

The union launched a website, Casino­Leaks-Macau.com, and posted "600 pages of supporting documents" to highlight what it alleges are possible ties between VIP room operators linked to Chinese organized crime and widely known casino brands, including Las Vegas Sands Corp.

"We think the regulatory regime in Macau is so loose it will infect regulations in the U.S. since Las Vegas companies are permitted to operate in Macau," said Jeffrey Fiedler, director of special projects and initiatives for the IUOE, which claims 1,000 members working in Nevada casinos.

It's unclear why the union, which has no foothold in Macau, has taken up the issue. When asked, Fiedler reiterated his concerns about loose regulation.

Among the documents posted online is information on "alleged triad (organized crime) leader Cheung Chi Tai and his associates detailing their deep and continuing relationship with Neptune" Group. Neptune Group is a publicly traded company that brings wealthy clients to Macau's casinos and has a business relationship with some.

Fielder said Thursday that he relayed his concerns in a letter sent to the Nevada Gaming Control Board Chairman Mark Lipparelli and Nevada Gaming Commission Chairman Peter Bernhard, and posted on the union's Macau-related website. Lipparelli was unavailable for comment Thursday.

Fiedler said one of his group's primary concerns is the "significant difference" in how Nevada and Macau define suitability in practice.

"I'm trying to get Nevada gaming regulators to do a thorough job looking into Neptune and its affiliated organizations to determine their suitability to do business with licensed operators in Nevada," Fiedler said in a phone interview. "People look to Nevada as the premier regulator ... I'm not sure that's justified anymore."

In his two-page letter, Fiedler wrote that he believes Macau authorities are disinterested in "pursuing triad influence and involvement in the territory, and Nevada appears either unwilling or unable to perform the enforcement functions that have given it a reputation as a strict gaming regulator."

MGM Resorts International, which operates MGM Grand Macau, dismissed the allegations.

"The concerns raised by the IUOE are baseless and reflect a complete lack of understanding of MGM's extremely robust policies and procedures for evaluating the suitability of its gaming room operations in Macau," company officials said in a statement. "Our extensive vetting process for gaming room operators is led by independent compliance committees at both the parent company and MGM Grand Macau."

MGM Resorts said it regularly submits to Nevada gaming regulators "updated independent assessment of all gaming room operators currently employed by MGM."

Las Vegas Sands spokesman Ron Reese did not respond to phone and email messages left Thursday. The company operates the Sands Macau, Venetian Macau and Four Seasons Macau.

The notoriety comes at a sensitive time for Las Vegas Sands and its billionaire owner Sheldon Adelson. Adelson and his family have donated more than $10 million to Newt Gingrich's campaign for the Republican presidential nomination.

Meanwhile, Las Vegas Sands company is also under investigation by the U.S. Department of Justice and Securities and Exchange Commission over allegations of bribery of foreign officials, according to company documents with with regulators.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.