Golden Group terminates VIP business in another blow to sector
Macau Golden Group is shutting down its VIP operations following “careful consideration,” in the latest blow to the junket sector crisis.
According to a memo seen by GGR Asia, one of the city’s long-established firms in the junket industry has informed its employees of the closure on Sunday.
Amid the termination of contracts, the junket firm said it will compensate its employees in accordance with the labor law.
The Times sent a query to the gaming regulator about the closure.
However, the Gaming Inspection and Coordination Bureau (DICJ) briefly replied, “DICJ has received a notification from the SJM Resorts, S.A., about the closure on March 30 of Golden Group VIP Gaming Rooms. DICJ will follow-up with procedures related to the closure.”
It is still not known how many employees will be affected by the closure of the junket’s VIP operations.
Back in December amid the arrest of junket king Alvin Chau, the DICJ and Labor Affairs Bureau (DSAL) said that staff members from casinos’ VIP rooms that have been recently closed should not be affected.
This was announced as two gaming operators Wynn Macau and Melco Resorts & Entertainment said that they would close junket VIP rooms at their Macau properties “within the next two weeks,” following the arrest.
After the termination notices, more gaming operators also announced closures of their VIP operations amid the Suncity and Tak Chun scandal: they now aim to acquire players who were formerly VIP players from junkets entering their premium direct program.
The Macau Golden Group’s shut down of VIP operations is yet another blow to the sector which is in turmoil, as junkets have been simultaneously squeezed by Covid-19, new regulations and severe pressure on capital controls – “an almost fatal combination,” as Political and Corporate Risk Consultancy Steve Vickers & Associates (SVA) said.
Vickers previously told the Times that forthcoming regulatory shifts signaled an end to some or all of the junket business, which has “led to an escalation of efforts by certain junket operators to raise gaming revenues directly on the mainland and to engage in unlawful gaming.”
