New collaboration model between gaming ops, junkets

The gaming industry is witnessing the emergence of a new partnership model between gaming concessionaires and junkets.

According to an interview with Ming Pao Hong Kong newspaper, U Io Hung, the president of the Macau Gaming Promoter Professionals Association, “The past two months have seen this trend take form and are projected to persist.”

He emphasized that junkets are expected to play a larger role in the management of these gaming establishments.

Under revised regulations, each junket—officially termed a gaming intermediary—can partner with only one concessionaire and is barred from operating its own VIP rooms. This shift marks large shift in the junket model, which previously relied on revenue sharing. Instead, junkets now earn commissions for promotional services, capped at 1.25 % of rolling chip turnover, and are prohibited from extending credit to gamblers.

This fresh collaboration model between gaming concessionaires and junkets has already undergone trial runs at two venues operated by Galaxy Entertainment Group and Melco Resorts & Entertainment, with the results being “very positive,” according to U.

“The results from this new model so far have been very positive,” he remarked, indicating that integrated operations could significantly enhance business for junkets.

The number of licensed junkets in Macau has fluctuated dramatically, dropping from a peak of 235 in 2013 to just 23 by December 2024.

Despite this decline, U expressed optimism about the future, stating that ongoing discussions with the Macau government aim to improve conditions for junkets amid a transforming industry landscape.

The government has set a limit for 2025 on the number of junkets the city’s six gaming operators can partner with, restricting it to 50, the same cap as the current year.

U, who leads one of the licensed junkets, announced they are in talks with the government to improve the operational environment for junkets, acknowledging that the local gaming industry is “undergoing transformation.” NS/TC