MGM China also confirms terminating agreements with junket promoters

March 1, 2022 Macau Events & Announcements

MGM China has also suspended operations with its primary VIP gaming promoters since December, 2021, MGM Resorts indicated in the annual report for the previous year.

“We have focused our business on main floor gaming operations and, accordingly, we do not expect VIP gaming operations to be a significant source of revenue in future years. The majority of MGM China’s casino revenue has been provided by main floor gaming operations in recent years and we expect this customer base will be the primary source of growth in the future,” the parent company noted in a filing with the US securities exchange commission.

So far gaming concessionaires Melco Resorts, Wynn Macau, Sands China and Galaxy Entertainment Group have all confirmed to have ended agreements with their previous junket partners since December of last year.

The decisions followed the high-profile arrests of two of the leading figures of the city’s two largest junket groups, Suncity and Tak Chun, and the disclosure of the new gaming law amendment which includes several restrictions relating to gaming promoters.

Under the proposed bill each gaming promoter can only exercise the activity of gaming promotion for one concessionaire, revenue sharing arrangements between concessionaires and gaming promoters are prohibited, gaming promoters are prohibited from having the exclusive operation of casino reserved areas, and gaming promoters are restricted to only providing support to the concessionaires in the promotion of casino gaming activities through commissions.

The bill is subject to debate and approval by the Legislative Assembly and is currently under standing committee evaluation.