The Macau gaming regulator has established a cap of 50 for junket licensees in 2024. This move follows the implementation of the new gaming law that came into effect last year.
According to information available on the Gaming Inspection and Coordination Bureau (DICJ)’s website, this cap represents the maximum number of junkets each of the city’s casino operators can collaborate with in 2024, with the total set at 50.
Sands China and SJM Holdings have been granted permission to partner with up to 12 junkets in 2024.
MGM China and Melco Resorts & Entertainment can each collaborate with eight junkets.
Meanwhile, Galaxy Entertainment Group (GEG) and Wynn Macau have a cap of five junket partners for the upcoming year.
Kwok Chi Chung, head of the Junket Association, revealed that this cap was imposed due to the historical operations of each gaming company. During the crackdown on junkets in Macau, some gaming operators considered terminating their partnerships with junkets, which explains why certain casinos have lower caps.
Kwok Chi Chung pointed out that SJM had previously collaborated with more junkets over the years and even contemplated ending these partnerships during industry crises. However, SJM did not approach DICJ to cancel these operations.
In this context, Kwok Chi Chung believes that DICJ set a junket cap for each casino based on their current operations.
U Io Hung, the president of the Macau Professional Association of Gaming Promoters, recently mentioned that Macau’s VIP segment is likely to attract new investors, potentially leading to an increase in the number of junket licensees.
However, Kwok Chi Chung notes that applying for new junket licenses won’t be easy due to stringent requirements.
According to the law, foreigners or non-resident-investors must partner with residents, with the local investor holding at least 51 percent of the company capital. Additionally, the company must obtain the support of gaming concessionaires.
Kwok revealed that the 36 licensed junkets in Macau generated nearly HK$6 billion ($768 million) in monthly rolling chip turnover. If the number of junkets grows in the future, the turnover per junket will further decrease.
According to the law, each Macau junket is permitted to partner with a single gaming concessionaire. Junket operators can earn a commission, capped at 1.25 percent of rolling chip turnover, for their gaming promotion services but are prohibited from sharing casino revenue with the casino concessionaire they work with.
Macau’s gaming regulator has also set a cap of 250 collaborators allowed in the market for 2024.
As of September 15th, there were only seven registered collaborators in the Macau market, with one additional license under review.