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Macau regulator says casinos and junkets are not competing directly

Macau's gambling regulator DICJ has rejected claims that casino operators are now directly competing with junket operators in the VIP segment.

Acting DICJ Director Lio Chi Chong issued the response to lawmaker Chan Hao Weng, who called for a review of Macau's junket rules.

The regulator said the two sides have distinct roles - casino concessionaires are licensed to conduct gaming, while junket operators recruit players and receive commissions from concessionaires for those services.

Junkets can work with only one casino

Under Macau's current framework, each licensed junket operator can work with only one concessionaire.

Junkets are also prohibited from participating in casino operations, sharing gaming revenue or directly conducting gaming activities.

Chan argued that the expansion of directly managed VIP operations has reduced the channels available to junkets for attracting customers and created an uneven competitive environment.

DICJ data showed 29 licensed junket operators in Macau in July, compared with a maximum of 50 set for 2027.

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Junket commissions capped at 1.25%

Since January 2023, junket commissions have been capped at 1.25% of total net rolling-chip turnover.

Junket operators also pay a 5% tax on commission income, with no exemptions.

Chan has called for the one-concessionaire restriction to be removed and the 5% commission tax to be reduced.

DICJ has not committed to either change, saying the current framework is intended to prevent excessive and disorderly expansion of the sector.

The regulator said it will continue monitoring junket operators and tax compliance while maintaining the distinction between licensed casino operators and junkets responsible for attracting players.


Source: Asia Gaming Brief

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