Professor Zeng Zhonglu, of the Gaming Education and Research Center at the Polytechnic Institute of Macau, believes junket operations are the biggest reason behind Macau’s lost revenue. In a report published on April, 21, 2015, encapsulating remarks the professor made in a forum hosted by the Cunha Foundation, Professor Zeng said the VIP gaming industry is out of control, with a lack of security for investors, and improper credit monitoring. He also said there are increasing numbers of people suffering from gambling problems. Zeng believes these issues are negatively influencing Macau society, but it is the junket operations that are making it even worse.
Professor Zeng compared junket operators to those behind the Lehman Brothers disaster during the U.S. financial crisis last decade. Operators could lose control of the credit they have extended, which would leave more bad debts, further hurting Macau.
He and other analysts are calling for more stability in Macau’s gaming industry by requesting tighter regulations on local junkets. Professor Zeng believes more development of non-gaming industries needs to happen as well.