Macau government limits number of casino operators' collaborations with junkets
The Macau government has confirmed that it is planning to limit the number of licensed gaming promoters or junkets that casino operators can collaborate with next year. The Gaming Inspection & Coordination Bureau (DICJ) in Macau, the former Portuguese territory’s gaming regulator, has officially made an announcement regarding the collaboration between casino operators and junkets in the region. According to released information, there will be 50 promoters in the region who will be allowed to collaborate with casino operators. All casino operators will be required to adhere to the list of entities approved by the DICJ.
The local branches of two major casino operators in Macau's gaming scene, Sands China Limited and SJM Holdings Limited, have been allowed to collaborate with up to 12 gaming promoters each. Meanwhile, the subsidiaries of MGM China Holdings Limited and Melco Resorts & Entertainment Limited, operating within the Macau market, have been given the nod to collaborate with up to 8 junkets each. Galaxy Entertainment Group Limited and Wynn Macau Limited have been given permission to team up with up to 5 junkets each.
The new regulations indicate that collaborators, including stakeholders and sub-agents, are the actual driving forces behind the scenes. They have extensive networks and influential connections, which make them the catalysts for alluring high-rollers into the expensive VIP rooms of Macau's gaming properties.
For the entire Macau gaming market, there is a cap of 250 collaborators. As of 15th of September, only 7 registered collaborators were in the mix, with one more eagerly waiting for a license to be approved by the government. Thus, the stage is set for an electrifying period of new collaborations as well as innovation in Macau's vast gaming arena.
In short, Macau is introducing new rules where junkets can partner with only one casino operator and earn a commission, limited to 1.25% of rolling chip turnover. This marks a significant change in how junkets operate in the region.
A significant shift is underway in the gaming landscape of Macau. At the end of January this year, the number of junkets slipped 21.7 per cent to just 36. This decline underscores the evolving dynamics within the gaming industry and points to potential transformations in how the VIP gaming sector operates in this pulsating casino hub. The Macau government is navigating these changes to set the stage for a period of transformation in its gaming sphere.