The gaming industry in Macau is facing a unique challenge with its junket quota system. According to veteran junket promoter U Io Hung, only about half of the 50-strong market-wide cap on licensed gaming promoters, commonly known as 'junkets,' is currently being utilized. This underutilization is causing a ripple effect throughout the industry, as some of Macau's six casino concessionaires are holding onto quotas they are not using, while others are in need of more but are unable to obtain them due to the cap and allocation method.
The Impact of Unused Quotas on the Market
U Io Hung highlighted a specific example with Venetian Macau SA, a gaming concession entity of Sands China Ltd, which has a cap of 12 partnering junkets for a full year but is currently operating with barely any working junkets. This situation exemplifies the broader issue of unused quotas not being released back into the market, which U Io Hung, who heads the Macau Gaming Promoter Professionals Association, describes as a case of wasted resources and a potential loss of gaming tax income for the government.
He pointed out that even some junkets with ready patron networks are unable to enter the market due to this quota issue.
Regulatory Framework and Industry Response
The current regulatory framework in Macau allows junkets to partner with only one gaming concessionaire, and they are permitted to earn a commission capped at 1.25 percent on rolling chip turnover for their gaming promotion services. However, they are prohibited from sharing casino revenue with their casino-concessionaire partner. As of March 13, the Gaming Inspection and Coordination Bureau reported that Macau has 24 licensed junkets. The quota system was introduced following the passage of Law 16/2022, which aimed to regulate the scale of the junket and satellite casino sector.
Despite this, the quotas are assigned in advance for a calendar year, not in response to actual market conditions. U Io Hung's association has been advocating for the city's operators to find additional lawful ways to incentivize junkets to bring high-value players to the casinos.
Source: Macau junket quota system could be better organised for city’s benefit: junket rep, GGRAsia, April 9, 2025.
Posted by Wizard
Apr 09 2025
Apr 09 2025
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