Number of junkets plunges to 18 this year

Macau has again seen a reduction of licensed junkets this year after figures from the government show the number of gaming promoters has been slashed to 18.

The figure represents 50% of 2023’s numbers, according to information from the Gaming Inspection and Coordination Bureau (DICJ).

The latest reduction comes after the government enforced the largest gaming law overhaul in Macau’s history, as well as the junkets law, which states that junkets can no longer engage in revenue share arrangements with concessionaires.

The Secretary for Economy and Finance has previously ruled that gaming promoters’ commissions cannot exceed 1.25% of the (rolling) net amount of the conversion of gambling chips, whatever the calculation basis for converting those chips may be.

As required by the law, gaming promoters can only work with one gaming concessionaire at a time. Additionally, and among other requirements, this contract must be approved by the local government.

Gaming promoters are also required to pay MOP1.5 million to obtain their licenses. Deposits required of junkets, junket collaborators and gaming management companies are set, respectively, at MOP1.5 million, MOP500,000 and MOP1.5 million.

Macau’s junket sector has witnessed a 92% decline over the past decade. Income generated through Macau’s casinos peaked in 2014, with gross gaming revenue (GGR) exceeding USD45 billion – three times that of Las Vegas.

At that time, 235 junket operators were registered to operate under licenses in Macau, collectively contributing around 60% of casino GGR.

Macau’s junket operators are companies that lure high rollers to gamble in the city. Before the gaming crackdown and the pandemic, they were responsible for 75% of Macau’s annual VIP gaming revenue, which totaled approximately USD3 billion.

In 2023, the number of gaming promoters in Macau fell from 46 to 36 – a far cry from the 235 licensed junkets the city boasted in 2013.