Paulo Martins Chan, Macau’s Gaming Inspection and Coordination Bureau new director, revealed that the regulatory refused to renew a total of 35 junket operator licences because the companies failed to submit necessary accounting data by the deadline.
Macau announced plans to increase oversight of gaming promoters, commonly called junkets, in September, 2015. When Chan was given the director’s job in December he mentioned that the goal would be one of his priorities. In a radio interview, he highlighted that imposing stricter benchmarks determining financial stability and suitability of such junkets would be his ultimate goal.
Giving a statement on Wednesday, Chang reminded of the October’s guidelines for gaming promoters and pointed out that “a few of them haven’t submitted the required information.” Therefore, he explained that those 35 gaming promoters’ licences weren’t renewed.
As of July, 2015, Macau’s list of licensed gaming promoters counted a total of 182 operators. According to new regulations, the operators have to submit monthly accounting reports to the regulator in order to keep their licence. Furthermore, each junket has to provide information about key employees that are in charge of the company’s financial operations.
Union Gaming Securities Asia Limited analyst, Grant Govertsen, added in a note following Chang’s statement that they suspected the junkets would probably stop their operations anyway because of weak demand. Govertsen made further comments in the note claiming that the recent happenings were “in line” with their expectations to see additional closures in the junket industry. He also mentioned that they predict a 12% decline in VIP GGR in 2016.
Meanwhile, the situation in the gambling hub doesn’t seem to improve as the city’s gross gaming revenue constantly drops y-o-y. Ever since China’s crackdown on corruption scared away VIPs, Macau has been struggling to get back on its feet; even Chan himself promised to change gaming laws in order to revive the weakened casino industry.