Number of gaming promoters down 50% following junket scandal
The number of gambling promoter licenses in the city has decreased nearly 50% in just one year in the aftermath of the arrest of Suncity Group CEO and junket mogul, Alvin Chau.
As cited in the Gaming Inspection and Coordination Bureau, Macau currently has only 46 junket licensees for the current year: far fewer than the approved 85 license gaming promoters.
According to reports, junkets account for 75% of Macau’s VIP gaming revenue, equating to around USD3 billion each year.
Although the major junket brands such as Tak Chun, Meg-Star International and Golden Group remain in operation, the bureau did not provide further information on the dramatic decrease in junket operators.
Back in December, Chief Executive Ho Iat Seng admitted that the existence of junket operators is a “problem” for Macau. Consequently, he said that when the gambling law is amended, the government will enforce it rigorously. He expressed hopes that junket operators will adopt the remuneration system as prescribed by the relevant executive regulations.
This year’s figure is only a fraction of the 235 licensed junket operators recorded in 2013.
The arrest of Chau in November was an alarming blow for the sector, as Suncity Group immediately shut down its VIP gaming rooms in Macau casinos in the days following the arrest.
The swift downfall of an corporation that once handled as much as HKD180 billion staked by high rollers in its VIP rooms in a single month underscores China’s severe crackdown in the world’s largest gaming hub.
Chau confessed to establishing overseas gambling platforms and carrying out illegal virtual betting activities. As part of their regular activities, junkets service high-rollers and extend credit to them.
In 2019, Suncity operated up to 17 VIP gaming rooms in Macau and accounted for nearly half of the gambling hub’s VIP market, according to reports.
Meanwhile, in a draft of the gaming law amendment recently announced, these gaming promoters may continue to operate in the local gaming industry provided they are attached to a single concessionaire.
In subsequent sections the bill stipulates that licensed junket operators may not pass on any of their activities and responsibilities to third parties to act on their behalf; and they are forbidden from exclusively using special areas of the casinos (VIP rooms).
