Junket closures compliance with US regulations: HK media

Junket closures at US-originated casino brands in Macau may have occurred in compliance with US regulations, according to Hong Kong media Ming Pao. 

US brands – including Sands China and Wynn Macau – allegedly ordered junkets operating in their casinos to close due to concerns that their operations may violate US laws.

The news outlet hinted that MGM China will follow their partners in ordering the closure of junket-operated VIP casinos.

This is also the reason why SJM Resorts S.A. (SJM) and Galaxy Entertainment Group (GEG) have maintained operations of these VIP casinos.

Ambrose So, vice-chairman, executive director and CEO of SJM Holdings Ltd., told the Hong Kong news outlet that the corporation is contractually bound to continue its cooperation with these junkets.

So added that, as revenue from the main gambling floor surpassed that from VIP market recently, the bumps in the junket market have not affected earnings much.

The Hong Kong outlets also suggested that MGM sought to retain VIP casinos that it operates currently, and those operated by junkets would likely be shut down. 

Wynn Macau is reportedly terminating its VIP room by December 20 following the arrest of junket mogul Alvin Chau.

Melco Resorts & Entertainment Ltd. has also reportedly notified junket operators on Monday that from late December, they intend to shut down the rooms where companies bring high rollers to play, according to a Bloomberg report.

Melco, which has three casinos, will reportedly close such rooms on December 21. AL