The Macau government is limiting the number of junkets and licensed gaming promoters in the city starting in 2024. All casino operators in Macau will have to comply with the recently released list of allowed promoters.?
New conditions for junkets:
The Gaming Inspection and Coordination Bureau (DICJ), Macau’s casino regulator, published the news, and according to them, there will be 50 promoters who will be able to collaborate with operators.
The local units of Sands China Ltd and SJM Holdings Ltd will both be able to partner with up to 12 gaming promoters, as published in the list.
On the other hand, the subsidiaries of MGM China Holdings Ltd and Melco Resorts & Entertainment Ltd, which operate in Macau, will be able to collaborate with eight junkets per company. Galaxy Entertainment Group Ltd and Wynn Macau Ltd are limited to five partners each.
The Macau regulations see stakeholders, sub-agents, and others as collaborators to the companies that actually operate casinos. The collaborators are actually people with many contacts and an impressive network of partners, so they can bring more powerful players to the VIP rooms of Macau casinos.
The number of collaborators is limited to 250 in the whole market, as GGRAsia reports. So far, on September 15, the number of registered collaborators was seven, while one more collaborator awaits license approval, as shown in DICJ data.
A range of limitations:
However, the number of junkets has already decreased – in January 2023, there were 36 of them, which shows a huge decrease of 21.7% compared to the previous year’s data.
Gaming promoters greatly affect the gambling scene in Macau, especially when it comes to VIP gaming. They are obligated to arrange various gambling credits to interested players, as well as to collect the amounts the players lost in high-roller plays. They are also in charge of the organization of the whole accommodation for the tourist and VIP players.
However, in December, the consolidating bill, which will regulate and limit all activities and services of casino junket operators, was approved by the city’s Legislative Assembly, and it prohibited the individuals from acting as junkets. That means that only companies will be allowed to offer their services.
Furthermore, the government has to approve all contracts signed with junkets in order for them to become valid.?
Junkets will be able to partner with only one concessionaire and earn a commission from the operator. The commission is also limited to 1.25% of each rolling chip turnover. However, they aren’t allowed to share the revenue the casino earned, as well as to use the casino’s property for their own operations, so they’re completely dependent on the concessionaire.