In a statement, the group said it was “aware of the arrest and detainment” of Chan, who is also an Executive Director and Co-Chairman of the Board.
Macau Legend Development runs three casinos – Landmark Macau, Babylon Casino and Legend Palace Casino – in Macau. Its shares plunged by as much as 30% in Hong Kong following the announcement.
Chan is also the Chairman of Tak Chun Group, a company which organises junkets. His arrest follows that of Suncity Group Holdings Chairman Alvin Chau in November. An arrest warrant was issued for Chau by eastern Chinese city Wenzhou, for operating gambling activities in mainland China, where gambling is illegal.
The arrests come amid increased regulation on alleged money laundering and illegal cross-border gambling, with the Macau Gaming Inspection and Coordination Bureau recently strengthening its collaboration with the police.
“The Board is of the view that as the group is operated by a team of management personnel and the above incident relates to the personal affairs of Mr Chan and not related to the group, the Board does not expect the above incident to have a material adverse impact on the daily operations of the group. The Board will closely monitor and review the situation and make a further announcement(s) as and when appropriate,” a statement from Macau Legend Development read.
“Shareholders and potential investors of the company are advised to exercise caution when dealing in the shares of the company.”