The End for Macau Junkets with New Rules

Macau

Thursday in Macau virtually saw the end of junkets in the tiny enclave which is the biggest gambling hub in the world. The Legislative Assembly approved the “Exploitation Regime of Games of Chance in Casinos” revision which greatly limits the activities of junkets within casinos for the six concessionaires.

From now on al junkets will be strictly monitored by the DICJ regulator and officials estimates from the Macau government say that 77% of junket activity will be gone following the decision. Junket operators already had a bad year with tax receipts to the local government totalling just $5.4 million.

The new restrictions are part of mainland China’s control policy of capital flow out of the country which will affect junket operators revenues and the government in Macau now believe the tax returns from those operators will in the future be even lower than this year’s.

Also now restricted are the VIP rooms which will now be “Satellite Casinos” and junket operators will be known as “gaming management companies.” Those companies will only be allowed to work with one single concessionaire and not multiple ones as in the past and revenue sharing agreements will be prohibited.

Exactly how this will affect junket operators is not known yet but insiders there believe this will mark the end of the majority of them with the new rules.