Macau Junket Association Leader Calls On Government To Tighten Requirements
In Macau, the leader for the trade organization that represents the city’s many junket operators has reportedly called on the government to increase the minimum cash requirement a firm must obtain in order to be permitted to shuttle VIP players into the enclave’s over 30 casinos.
Kwok Chi Chung, President for the Association of Gaming and Entertainment Promoters of Macau, reportedly told the Macau Daily Times newspaper that junket operators currently only need to provide deposits of about $12,400 in order to be defined as such and that this provision is “too low”.
“[Only] $12,400 for doing business in the order of billions is, of course, too low,” Kwok told the newspaper.
The Reuters news service reported that Macau has over 190 licensed junket operators with some of the largest being Suncity Group, Neptune Group Limited, Dore Holdings Limited and Asia Entertainment and Resources Limited. These firms are moreover known as VIP room promoters and act as facilitators to guarantee casinos a certain amount of revenue in exchange for being able to offer their wealthy customers, which are often businessmen from neighboring China, free accommodation and travel services alongside other unique benefits.
Macau’s Gaming Inspection and Coordination Bureau regulator recently detailed that the city saw aggregated VIP baccarat gross gaming revenues between April and June increase by 34.8% year-on-year to hit $4.46 billion while Reuters explained that junket operators often employ a network of agents, which are known as sub-junkets, to identify VIP players and collect debts in exchange for taking a specific commission.
Kwok reportedly told the Macau Daily Times that the government for the former Portuguese enclave should moreover increase its supervision of junket operators and place restrictions on the bank accounts these firms hold as an assurance against theft.