Macau’s gaming regulator has rejected suggestions that casino operators’ directly managed VIP businesses compete with licensed gaming promoters, saying the two sides have distinct roles and ‘no competitive relationship whatsoever.’
The Gaming Inspection and Coordination Bureau (DICJ) made the comments in an August 12th written reply signed by Acting Director Lio Chi Chong. It addressed questions from lawmaker Chan Hao Weng, who had called for a review of the city’s junket regulations.
Lio said only concessionaires are authorized to operate casino gaming. Gaming promoters, commonly known as junkets, introduce players and provide transportation, accommodation, dining and entertainment services in return for commissions paid by concessionaires.
Under Macau law, each junket may work with only one concessionaire and cannot share casino revenue or participate directly or indirectly in casino operations.
‘Gaming promoters only assist concessionaires in promoting their business or attracting gamblers,’ the acting director stated. ‘Concessionaires and gaming promoters have a cooperative relationship. Their roles do not overlap, and there is no competitive relationship whatsoever.’
Chan had argued that concessionaires’ expansion of directly managed VIP services had narrowed junkets’ customer channels and created an uneven competitive environment.
Citing DICJ data, the lawmaker said Macau had 29 licensed junkets as of July, representing 58 percent of the ceiling of 50 set for 2027. He urged the government to relax the one-concessionaire restriction and reduce the 5 percent tax on junket commissions.
Under a dispatch that took effect in January 2023, junket commissions are capped at 1.25 percent of total net rolling chip turnover. Benefits provided directly or indirectly to junkets by concessionaires or related companies are also counted toward that ceiling.
Junkets are currently required to pay a 5 percent tax on their commission income, with no exemptions.
Lio defended the current framework, describing exclusivity and the ban on revenue sharing as basic principles that allow junkets to focus on bringing players to concessionaires. The rules would help the industry develop in a ‘sound and reasonable direction’ and prevent another period of ‘excessive and disorderly expansion,’ he added.
The acting director made no commitment to review the tax or relax the exclusivity requirement. He said the DICJ would continue monitoring the industry and regional gaming policies, respond when necessary and supervise concessionaires and junkets to ensure taxes are paid in accordance with the law.
