At a press conference last week, Chief Executive Ho Iat Seng underlined the government’s lack of involvement in the operation of junkets, upon being asked to comment on the recent collapse of junket operators as he arrived home from his duty visit in Beijing.
Ho stated that the junkets are contractually related to gambling license concessionaires. He stressed that the government had never intervened in the relationship between casinos and junkets and had made no request to establish or dismiss VIP gambling rooms. Furthermore, the government has not ordered casinos to facilitate the dissolution of high-roller gambling rooms.
The government has not mandated either the establishment or the dissolution of junkets, he said.
However, he admitted that the existence of junkets is a “problem” in Macau. Consequently, he said that when the gambling law is amended, the government will enforce it rigorously. “It is hoped that [junket operators] will adopt the remuneration system as stipulated by the [relevant] Executive Regulations,” Ho said. “This is a more normal manner [of operation].”
The government head has also commented that brokers and collaborators in the gambling industry are legally defined, and that “individuals found to have committed violations of the law will be held responsible.”
When asked whether next year’s target of MOP130-billion gross gaming revenue (GGR) was still achievable given the serial closures of junkets, Ho said the target remains the same, although noted that further coronavirus outbreaks will make the target less achievable.
He pointed out that the operations of junkets have been shrinking over the past five years, peaking in 2013. No studies on the economic impact have been conducted so far. “For the time being, it is still unclear how many junkets are departing from the market,” Ho said.
