Industry veterans say Macau junkets lost interest due to high costs, strict regulations

U Io Hung and Kwok Chi Chung, two seasoned veterans of Macau junkets, claim that just three out of the eighteen gaming promoters, or “junkets,” who now have licenses are new to the business.

The other fifteen junkets are well-known, have been running in Macau for some time, and have submitted applications to have their licenses renewed. This figure indicates that many previous operators have lost interest as a result of high operating costs and a strict regulatory environment since it is much lower than the Macau government’s entire market cap of 50.

As per U Io Hung, the head of the Macau Gaming Promoter Professionals Association, several junket operators made the decision to exit the market due to various reasons such as being too old, not having enough personnel, or being associated with satellite casino operations that opted to discontinue their gaming promoter business. Two satellite-linked junkets that were included on the January 2023 list but were left off the 2024 list are Novo Clube VIP Legend and Joy Wave Diamond.

U Io Hung emphasized that the historically low number of approved junkets is not the result of a lack of interest from casino operators, but rather of high operating costs and a strict regulatory environment. Based on data from the Gaming Bureau, the number of licensed junkets reached its high around ten years ago.

Kwok Chi Chung, another veteran of the local junket scene, said that a large number of operators departed because to insufficient customer demand and an inability to adapt to the changing business environment. The total number of junkets that are allowed in Macau has decreased from 36 in 2023 to 18 this year. However, Kwok pointed out that only around twelve of the thirty-six candidates on the 2023 list were in the contest at the time.

The most recent proposal from the Macau government to forbid authorized junkets from providing credit to patrons of nearby casinos would provide more difficulties for the sector. Kwok does, however, find some bright spots, pointing to the entry of at least three new competitors—a trend that hasn’t been witnessed in the sector in a long time.

Original story by: GGRAsia