Alvin Chau, the founder, and CEO of Suncity Group believe that eliminating VIP junkets won’t help the Macau gaming industry.
Chau noted the important role of junkets in Macau’s gaming industry. He further explained how changes in junket operation could force business out of the region.
The Chinese special administrative region (SAR) is considering several regulatory changes to apply to casinos in the next licensing period.
In Macau, VIP junket groups are official promoters. They organize travel for high rollers to Macau. Junkets were implemented in the SAR’S 2001 expanded gambling legislation.
VIP junket groups collect fees from high rollers in China or elsewhere. Customers are then transported to a five-star casino resort and offered a gaming credit, equal to the total trip ticket purchase.
Recently, the Macau government suggests it could ban junket groups from accepting cash deposits from customers other than casino stakes.
Chau believes that regulators are not trying to hurt junkets but to protect Macau’s reputation.
“The government is not aiming to trivialize or drive out the junket sector, but to regulate the sector so that it would not hurt Macau’s reputation.”
However, Chau criticizes such a move noting that if customers do not pay, then junkets groups won’t be able to buy chips on their behalf.
However, the proposed changes seek to stop junket groups from depositing clients’ funds in interest-bearing bank accounts. The amendment is imperatively important for the protection of the general public.