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Police arrested 11 people over alleged money-laundering and illegal cross-border gambling.
Authorities had earlier said they were questioning a prominent gambling industry figure.
A Chinese state media outlet said Mr Chau was accused of leading a gambling syndicate.
In Macau, the world's biggest gambling hub, casino gambling is legal.
The South China Morning Post quoted police as saying that a Macau businessman with the name Chau was among those arrested.
The chairman of Suncity Group is Mr. Chau. Suncity is Macau's biggest junket operator and it organizes trips to Asian casinos for wealthy gamblers.
Suncity Group's shares were halted from trading on the Hong Kong Stock Exchange. It did not respond to the request immediately.
MGM China was down 10%, Wynn Macau was down 8%, and Sands China was down more than 6%.
The Global Times named Mr Chau as the head of a cross-border gambling criminal syndicate, with more than 12,000 gaming agents and 80,000 members across China.
Sun Entertainment Group, a film production and cremation services firm, said in a stock exchange filing on Sunday that its board had noted the news coverage about the investigations in Macau.
The Board is of the opinion that the incident does not have a material impact on the financial position, business or operation of the Group.
Sun Entertainment Group's shares were down on Monday.
Macau's casinos have come under increased scrutiny in recent months as regulators aim to more closely supervise their operations.
In September, the city's secretary for economy and finance gave notice of a 45 day consultation period on the gambling operators, pointing out the weaknesses in supervision of the industry.
The consultation will include better regulation of the industry, as well as having government officials supervise day-to-day casino operations.
The caption is media.
Why does China's economy matter to you?
China.
The stock markets are open.
The city of Macau.
Gambling.