Junkets to Survive Without Chinese Gamblers, Asserts Expert

December 17, 2021 Emerging Markets

Davis Fong, a gaming professor and former lawmaker in Macau, believes that junket operators in the city can survive and thrive. All they need to do is redirect their attention away from mainland Chinese customers to Hong Kong and Southeast Asia, IAG reports as it cites Fong and his outlook for the industry in the region.

Macau’s Junkets in the Hot Seat
Fong is a professor in Integrated Resort and Tourism Management and the Director of the Institute for the Study of Commercial Gaming at the University of Macau. While speaking to the media during the Macau government’s Responsible Gambling Promotions for 2021 at the Macau Science Centre, he said that it was up to the junket industry how to respond to China’s recent crackdown on cross-border gaming.

The junket industry is in a state of uncertainty following the closure of VIP rooms by Suncity Group in Macau. It was also forced to close its business earlier in the month after former CEO Alvin Chau was arrested on charges related to illegal gambling.

Fong stated that “With these changes, our gaming services will depend on exportation, which means [sourcing] clients from different regions. Traditionally some casinos and VIP rooms have targeted clients from mainland China to promote their business, but this is inconsistent with the legal system.”

Fong doesn’t believe that Macau is in the process of revamping its gaming structure. He explained that targeting VIP gambling segments in countries other than China, including Japan, Taiwan, Thailand, and more, was common before Portugal handed Macau over to China in 1999.