Inside Asian Gaming

February 2009 | INSIDE ASIAN GAMING In fact, many of the large Fortune 500 companies—IBM, Xerox, Coca Cola, etc.— will normally employ both salaried sales executives and commissioned independent sales representatives at the same time to help increase market-share. Junket programs are no different than a Manufacturer’s Rep program. Large companies recur to the latter in addition to their own internal sales force primarily due to the logistics and the economics. The programs work and they are cost effective if managed properly. There is not too much difference between this and a casino junket program. However, some differences should be underlined in advance, to help insure that your junket program is set up properly from the beginning to help you maximize your casino’s true profit potential from the Junkets. Asian junkets are an exception to much of this article. Junket Reps in Asia tend to issue and control the credit for their players. The junkets participate in Asian Dead Chip Rolling Baccarat games where commission is based upon turn-over or the “rolling of non-negotiable chips”. The text books will tell you that it is often more cost effective to utilize independent commissioned sales reps to supplement your sales activities. It is cost effective because you only pay commission based upon productivity. Junket Reps work in the same manor. Junket Reps are only paid commission based upon success. The casino does not pay medical insurance, social security tax or any other expensive benefits to their independent junket reps. The success measurements vary by casino and by gaming jurisdiction. Commissions can vary from a percentage of the players’ Theoretical Loss to a percentage of the actual gaming loss of their customers. In Asia, Junket Reps earn a percent of the non- negotiable chips turnover often referred to as ‘dead chip rolling’. Giving and taking The natural tendency for a junket rep is to service his players and to maintain their loyalty. In order to achieve this objective they have to constantly offer their players exceptional benefits, excellent customer service and high value for their continued loyal patronage. Therefore, many junket reps often represent multiple casinos in multiple gaming jurisdictions. As a result of this they are able to review every casino’s special events, entertainment schedules, tournaments schedules, etc. and offer their customers the best available from multiple casinos. In effect, they handpick only the very best offers to present to their customers. The only risk or liability to the host casino is that they may only see that junket rep and his players during times when they are running high budget events which may not necessarily make the most money but are viewed as necessary for the casino to run to maintain position, market share and be competitive. Ideally, a casino should have monthly goals and budgets for each of their junket reps to meet in order for them to participate in the high cost special events, etc. Therefore, financial analysis is important The text books will tell you that it is often more cost effective to utilize independent commissioned sales reps to supplement your sales activities. It is cost effective because you only pay commission based upon productivity. Junket Reps work in the same manor. 45