Macau Regulators Meet With Junket Trade Group to Discuss Future VIP Operations

February 23, 2022 Macau Events & Announcements

Macau gaming regulators met recently with representatives of the enclave’s primary junket trade group. The topic was how such VIP trip organizers will operate under the region’s next governing environment.

Key officials with the Gaming Inspection and Coordination Bureau (DICJ) sat down with the Macau Association of Gaming and Entertainment Promoters to better communicate the region’s forthcoming regulatory regime. The focus of the meeting was to provide VIP junket organizers with better clarity regarding Macau’s new gaming laws, which are to be implemented later this year.

Macau’s Legislative Assembly in January released its draft bill of “Amendment to Law No. 16/2001.” The bill sets to amend the legal framework for governing casinos and their games of chance. A key component of the legislation is changing the legality of how junkets conduct business.

China is also seeking to limit the flow of capital from the People’s Republic to foreign countries, as well as presumed tax havens like Macau.

Revenue Sharing Prohibited
Kwok Chi Chung, president of the Macau Association of Gaming and Entertainment Promoters, revealed details of the DICJ meeting to Inside Asian Gaming. The junket rep said while much is changing regarding how junkets operate, the industry will continue under the new regulatory law.

[Gaming] promoters have existed since before the liberalization of the gaming industry and have been expanding during these past 20 years,” Kwok stated.

Assemblypersons are deciding the final version of the gaming law. But it is expected to closely mimic last month’s draft version that gained legislative approval. That version included substantial changes to junket groups.

Most notably, junkets will no longer be permitted to reach revenue-sharing agreements with casinos. They will also be limited to working with only one of the six casino operators.

In the current environment, junket groups organize and facilitate first-class travel to Macau for Chinese high rollers. Once in Macau, the VIP guests are afforded large gaming credit lines.

The draft gaming law seeks to prevent junkets from loaning such players gaming credit. The bill additionally prevents casinos from sharing gaming income generated from junket gamblers with the trip organizers.

Instead, junkets will only be allowed to receive a small commission based on the chips each junket patron directly purchases with the casino. Commissions are paid based on the number of chips rolled over — aka lost to the casino.