Academic says junket operations reason for revenue declines

A leading academic said the unsustainability of Macau’s junket operations is the biggest reason contributing to the 10-month straight declines in revenue.

Professor Zeng Zhonglu from the Gaming Education and Research Centre of the Polytechnic Institute of Macau said the operation of VIP rooms in Macau’s gaming industry is out of control, citing the lack of security for investors, the absence of credit monitoring and the increasing number of problematic gamblers, the Macau Business Daily reported. He said such issues have had a negative impact on Macau society.

Speaking at a forum on the gaming industry yesterday, Professor Zeng said the loose control of credit would finally result in bad debts and hurt Macau, and called for tighter regulation of the local junkets.

In terms of the mid-term review of gaming concessions, Zeng believes that there will not be more licenses issued in order to keep the economy balanced. He also said some other requirements should play a more important role, including the gaming operators’ efforts to develop non-gaming sectors, as well as fulfilling other social responsibilities.