Macau Junket Count Rises to 31, Remains Below Limit

(AsiaGameHub) –   Macau’s Gaming Inspection and Coordination Bureau (DICJ) has confirmed the licensing of two new junket operators in the world’s premier gaming hub.

Xin Wei Lda and Pok Lok Promoção de Jogos Lda have received authorization to cater to VIP gamblers at the city’s casinos. This increases the total number of licensed junkets to 31, a rise from 29 last year, yet remains significantly under the sector’s maximum allowance of 50.

Junkets act as intermediaries for wealthy casino clients, most of whom come from mainland China. Historically, they provided credit and payment services, allowing VIPs to circumvent China’s currency controls that restricted daily overseas transfers to 20,000 renminbi ($3,200).

At their zenith in 2014, 235 junket operators dominated Macau’s casino sector, accounting for up to 70% of all gaming revenue.

Sector marked by scandal

The junket system began to collapse under the oversight of Chinese President Xi Jinping, who assumed leadership in 2013. His administration initiated a robust anti-corruption campaign. One key focus was halting the illegal outflow of capital from the mainland, which included money moved by VIP gamblers.

The initial collapse occurred in 2014 when Macau junket operator Huang Shan left the region, defaulting on HK$10 billion ($1.3 billion) in debt. That year, a Chinese court also designated Hengsheng Group’s Ji Xiaobo as a major crime figure.

He was accused of establishing illicit casinos abroad, employing violence to recover gambling debts, and laundering the proceeds. In 2015, a cage cashier stole HK$700 million from Dore Entertainment, a junket running VIP rooms at Wynn Macau.

The critical strike followed with the arrest and prosecution of two prominent junket leaders. In 2023, a Chinese court convicted Suncity’s “junket king,” Alvin Chau, of illegal gambling and organized crime.

His scheme, involving HK$823.7 billion in unreported bets, deprived the Macau government of HK$8.26 billion in tax income. Chau received an 18-year prison sentence.

Tak Chun junket head Levo Chan was sentenced to 14 years for comparable offenses. He enabled clandestine betting operations that cost casinos HK$35 billion and the government around HK$8.6 billion.

Macau junkets: Down but not out

By 2024, a mere 18 junkets were operating in Macau, leading to predictions of the sector’s demise. Those obituaries were premature, but the regulatory landscape has been fundamentally reshaped.

Under Macau’s 2023 gaming law, junkets can no longer extend credit or operate VIP rooms. They are restricted to partnering with a single one of Macau’s six casino concessionaires, though a concessionaire may work with multiple junkets. Junkets now earn a fixed 1.25% commission on rolling chip turnover, rather than a share of casino revenues.

While 31 junkets are officially registered, perhaps only 20 are actively in business. Nonetheless, the local government anticipates collecting MOP150 million ($18.6 million) in tax this year from commissions casinos pay to junkets. This represents a 50% increase over the MOP100 million projected for the 2025 fiscal year.