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Macau's gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ), has introduced a cap on the number of junket licensees for 2024. This move follows the enactment of a new gaming law in Macau last year.
The cap has been set at a maximum of 50 junkets that each of Macau's casino operators can collaborate with in 2024. The cap varies among the city's casino operators:
Sands China and SJM Holdings have been permitted to partner with up to 12 junkets in 2024.
MGM China and Melco Resorts & Entertainment can each collaborate with eight junkets.
Galaxy Entertainment Group (GEG) and Wynn Macau have a cap of five junket partners for the upcoming year.
Kwok Chi Chung, the head of the Junket Association, explained that the cap was imposed based on the historical operations of each gaming company. Some gaming operators had considered terminating their partnerships with junkets during the crackdown on junkets in Macau, which explains why certain casinos have lower caps.
He noted that SJM had considered ending its partnerships with more junkets over the years but did not approach DICJ to cancel these operations. Thus, the cap for each casino appears to have been set according to their existing operations.
U Io Hung, the president of the Macau Professional Association of Gaming Promoters, suggested that Macau's VIP segment may attract new investors, potentially leading to an increase in the number of junket licensees. However, Kwok Chi Chung pointed out that obtaining new junket licenses won't be easy due to stringent requirements.
Under the law, foreigners or non-resident investors must partner with residents, with the local investor holding at least 51% of the company's capital. Additionally, the company must obtain the support of gaming concessionaires.
Kwok revealed that the 36 licensed junkets in Macau generated nearly HK$6 billion ($768 million) in monthly rolling chip turnover. If the number of junkets increases in the future, the turnover per junket will likely decrease.
According to the law, each Macau junket is permitted to partner with a single gaming concessionaire. Junket operators can earn a commission, capped at 1.25% of rolling chip turnover, for their gaming promotion services but are prohibited from sharing casino revenue with the casino concessionaire they work with.
Macau's gaming regulator has also set a cap of 250 collaborators allowed in the market for 2024. As of September 15th, there were only seven registered collaborators in the Macau market, with one additional license under review.
By fLEXI tEAM