The number of licensed junkets in Macau has been slashed to just 18, representing exactly half of the 36 junkets issued a license last year, according to information from the Gaming Inspection and Coordination Bureau (DICJ). There are also eight licensed agents for the next 12 months.
Among the licensed junkets in 2024 are Haishen Group, Hoi Seng, Chong Fat (Macau) Limited, and Pacific Intermediário Sociedade Unipessoal Lda, among others. However, companies such as Novo Clube VIP Legend do not appear on the list.
The latest reduction in junkets follows recent changes to Macau’s junket law, including a stipulation that junkets cannot engage in revenue share arrangements with concessionaires. Instead, they are limited to receiving a maximum commission of 1.25% on rolling chip turnover. Junkets are also prohibited from operating their own VIP rooms within Macau’s casinos.
Junkets, agents and casino management companies must provide guarantees of MOP$1.5 million, MOP$500,000 and MOP$1.5 million respectively to be issued a licensed, while the registered capital of gaming intermediary companies must be at least MOP$10 million.
U Io Hung, the director of licensed junket Pacific Intermediário Sociedade Unipessoal Lda, told Inside Asian Gaming that this year’s 18 licensed junkets have all signed contracts with partner concessionaires and have obtained their licenses in full compliance with the new junket law.
“Last year there were 36 gaming junkets, but in fact only about 15 of them were in operation,” he said.
“More new companies are expected to join the industry in the coming years because some companies are still applying for licenses or have not yet been granted licenses by the DICJ. This is expected to be more than 10 companies.”
U Io Hung added that, despite conditions having become challenging for junkets in recent years, the business environment has improved since the reopening of Macau’s borders a year ago.
He continued, “they are still unable to compete with the VIP rooms of the concessionaires, and there is a huge difference in resources. There are also some gaming junkets who have withdrawn from the market due to the new legal restrictions.”
As for the business environment in 2024, he said, “Mass market gamblers will return to the pre-pandemic level, or even surpass it, but the VIP gamblers will not be able to return due to various factors, including travel restrictions and the economic environment.”
In addition, U Io Hung pointed out that the new gaming credit law currently being scrutinized by the Legislative Assembly would, if passed, prohibit junkets from engaging in money lending practices, further narrowing their operating environment.
The number of gaming Junkets in Macau has declined significantly in recent years, from a high of 235 in 2013 to around 100 in 2019, 85 in 2021, 46 in 2022 and 36 in 2023. The decline was accelerated after the founder of leading junket Suncity Group, Alvin Chau, was arrested in 2021 and the founder of Tak Chun Group, Levo Chan, was arrested in early 2022.
