Macau’s Licensed Gaming Junkets Halved: Tightening Regulatory Controls

Major shake-up in Macau’s gaming industry!

Strict new regulations see gaming junkets cut by half.

Learn how Macau is transforming its VIP gambling sector.

Dive into the details of Macau’s stringent new junket policies.

Macau’s Gaming Junkets Undergo Drastic Reduction Amid New Regulations

Macau, the renowned gaming hub, has experienced a significant shift in its gaming junket landscape, with licensed operators plummeting to just 18, as per the city’s gaming regulator. This change reflects a tightened grip on the sector by regulatory authorities.

Renewal and Reduction: A New Era for Junkets

The Gaming Inspection and Coordination Bureau (DICJ) oversees the annual license renewals for junket operators. From 36 licenses in 2023, the number has sharply declined to only 18 for the current year. This reduction is stark, considering the sector once boasted over 100 licensed companies before the pandemic, and more than 200 at its zenith a decade ago.

Limits Set for Casino and Junket Partnerships

In a move to further regulate the industry, Macau’s gaming authorities capped the maximum number of licensed junkets for casino operators at 50 for 2024. Among these, Sands China and SJM Holdings have secured permissions to work with up to 12 junkets each. Following closely are MGM China Holdings and Melco Resorts & Entertainment with eight partnerships each. Galaxy Entertainment Group and Wynn Macau, meanwhile, have the green light to cooperate with five licensed junket companies.

New Legislation Brings Stringent Control

The recent drop in licensed junkets aligns with new laws granting the government more control over the junket sector. These laws include a commission rate cap for VIP junkets at 1.25% of rolling chip turnover and a 5% monthly tax on junket commissions. Furthermore, these operators can no longer share any casino revenue with their gaming concessionaire partners.

Draft Bill of the Gaming Credit Law Under Review

Concurrently, the Gaming Credit Law draft bill is being scrutinized at the legislative assembly, reflecting significant amendments. The government’s proposal restricts gaming credit issuance to gaming concessionaires, barring licensed gaming promoters from extending credit.

These sweeping changes mark a new chapter in Macau’s gaming industry, signifying a transformative period for VIP gambling and regulatory practices.