In the Philippines, junket operator Suncity Group has reportedly fallen foul of the nation’s gambling regulator after allegedly setting up operations at a small casino in the city of Pasay without permission.

According to a report from the Philippine Daily Inquirer newspaper, the Macau-based firm recently assumed control over junket activities at the small metropolitan Manila casino located on the lower level of the five-star Sofitel Philippine Plaza Manila hotel before holding a low-key re-launch ceremony attended by several junior members of the Philippine Amusement and Gaming Corporation regulator.

The newspaper reported that local firm, Success Vine Holdings Incorporated, was granted a three-year junket license in August of 2014 but had not been given subsequent permission to offload this authorization to Suncity Group. After hearing from members of the Philippine Amusement and Gaming Corporation that had attended the ribbon-cutting ceremony, Andrea Domingo, the regulator’s Chief Executive Officer, is alleged to have sent a strongly-worded letter to the certified operator demanding an explanation.

“Suncity [Group] is not licensed by the Philippine Amusement and Gaming Corporation to conduct junket operations at Sofitel Philippine Plaza Manila,” read the letter from Domingo. “In view thereof, we demand a written explanation why Success Vine [Holdings Incorporated] allowed Suncity [Group] to conduct blessing and soft opening ceremonies last week. Such act may be considered as grounds for suspension or termination by the Philippine Amusement and Gaming Corporation pursuant to the agreement.”

The Philippine Daily Inquirer reported that Suncity Group is licensed to offer its services at the nearby City of Dreams Manila as well as the slightly larger Solaire Resort & Casino, while Success Vine Holdings Incorporated is alleged to have responded to Domingo’s letter by shuttering its operation inside the Sofitel Philippine Plaza Manila.