Sector rep calls Macau junket credit ban “a huge blow”

“Huge blow” is how U Io Hung, the head of the Macau Gaming Promoter Professionals Association, described the local government’s legislative proposal in Macau, which aims to limit licensed junkets’ ability to independently extend credit to casino players.

Known as the “legal regime of credit concession for gambling in casinos,” the proposed legislation might have a significant impact on the already precarious junket business. Should the change be put into effect, it would restrict the junkets’ normal function of providing casino credit, which has historically been a crucial customer-acquisition tactic.

U Io Hung emphasized the value of gaming credit in attracting players, and he expressed concern that this proposed restriction would allow casino concessionaires to directly attract players, meaning that the purpose of junkets would be further undermined. Notably, revenue-sharing in the junket industry is already illegal, and each registered junket may only work with one casino concessionaire at a time.

Under the present regulatory conditions, which include heightened surveillance and a 5% withholding tax on commissions that casinos pay to junkets, profits for the company have sharply declined. Given the present problems and scrutiny facing the junket industry, U Io Hung is especially confused by the planned shift and questions the government’s logic.

Discussions on the casino credit law are expected to go until February, despite Macau’s licensing junket count continuing to decline (21.7 percent year over year to 36 in January). There will be a final reading of the measure at a Legislative Assembly plenary session, according to senior senator Chan Chak Mo, who leads the committee tasked with reviewing the draft bill on betting credits since May.

Original story by: GGRAsia