Macau’s junket operators have not been given a lot of attention by the media during 2014 and 2015, as the losses incurred by Macau’s casinos has been the focus of most discussions. However, Macau’s junket operators have been severely impacted by the drop in VIP gamblers as these smaller establishments have found it difficult to cope with the collapse of Macau’s VIP market.
These junket operators have struggled to cope with the new policies that Macau’s government has implemented and many of these operators are considering winding up and moving out of Macau as the move to focus on mass market gamblers instead of VIP gamblers will most certainly signify the end of junkets in Macau.
Macau Gaming and Entertainment Promoters Association and Paulo Martins Chan, the Director of the Gaming Inspection and Coordination Bureau (DICJ) finally managed to get together to discuss the issues and concerns faced by Macau’s junket operators. The meeting is a step in the right direction because it signifies that Macau’s government is still open to the possibility of salvaging the VIP market and collaborating with junket operators.
The DICJ will also want to discuss the regulations that govern junket operators from functioning within the casinos as a recent spree of fraudulent activities by junket operators and their employees have caused serious concern in Macau.
The DICJ had promised to amend junket legislation back in September 2015 after news of the Dore junket robbery scandal at the Wynn Macau broke. The DICJ had plans of implementing strict measures to ensure junket operators were junket operators were subjected to stricter auditing standards and accounting responsibilities.
Lionel Leong Vai Tac, the Secretary for Economy and Finance also attended the meeting along with other members of the junket association. One of the key topics discussed was improving both the regulations and laws that govern Macau’s junket operators as the DICJ assured the junket association that they were still a vital part of Macau’s gambling industry and wanted them to communicate more effectively to ensure that the gambling industry in Macau continued to be highly competitive.
At the start of the year, research and consulting company Spectrum Gaming Group LLC stated that junket operators will face tougher challenges during 2016. In a statement, the consulting firm said “Junkets and VIP room operators in Macau will be under increased revenue pressure until they change their business model and comply with [mainland China] laws and procedures for high-value patron play.”