The junket industry in Macau continues to face a hard time. The city currently has only 14 licensed gaming junkets in activity as the new junket law resulted in low income for these operators. U Io Hung, President of the Macau Professional Association of Gaming Promoters, described the challenging situation for junket firms at a recent seminar on the future development of the city’s gaming industry.
Under the new junket law, the commission rate for VIP junkets is capped at 1.25% of rolling chip turnover, with junket operators required to pay a 5% tax on their commissions each month. This is a significant change from the previous policy, under which the SAR government waived the commission tax, notes Macau Business.
As reported by local news, Kwok Chi Chung, the President of the Macau Association of Gaming and Entertainment Promoters, said the change was made effective in January this year. As a result, a large number of former junket staff have chosen to seek employment in other countries’ casinos, thus introducing Macau’s business model to these regions.
Kwok Chi Chung
In contrast, the development of Macau’s junkets is currently restricted, which makes it increasingly challenging for them to sustain their operations.
Hung also warned that Macau’s gaming industry faces a looming threat as neighboring regions with abundant tourism resources, such as Japan and Thailand, gradually open up for gaming. He emphasized the need for Macau to stay competitive and ensure that its gaming industry continues to thrive following a shake-up last year.
Despite all of its hurdles, the gaming hub has experienced a strong recovery since the Covid pandemic hit. Earlier this month, the city shared that casino revenue had reached MOP 15.6 billion ($1.93 billion) in May, due to the influx of mainland Chinese tourists. The figures show a 366% increase from the same period last year.
Since the start of the year, casino revenue has amounted to about MOP 65 billion ($8.06 billion), nearly three times the MOP 23.8 billion ($2.9 billion) registered in the same period last year.
Original article: https://www.yogonet.com/international/news/2023/06/27/67669-only-14-junket-operators-active-in-macau-as-new-law-results-in-lower-income
