As of January 1, Macau Legend shut down its high-roller junket business, ending decades of serving gamblers who wanted to visit the city’s VIP lounges.
A Hong Kong Stock Exchange filing cited by Asia Gaming Brief indicates the satellite casino operator bowed out of the junket side due to a “significant impact on the VIP gaming promotion business” and “new regulations” that will “affect the operations” of its VIP subsidiary.
Junkets are in overall decline in Macau, with the number now at 36, down from 46 a year ago. Meanwhile, two Macau junket bosses were jailed last year following allegations of illegal gaming, resulting in the closure of those businesses. The verdict in the case of Alvin Chau of Suncity Group is set to be announced on January 18. A trial is ongoing in the case of Levo Chan, head of Suncity rival Tak Chun.
Licensed VIP operations are still permitted in the city under a revamped law that limits junkets to a partnership with a single concessionaire. The new law also prohibits individuals from running junkets, and requires proof of capital assets by the operators.
Junkets now must show registered capital of MOP10 million ($1.24 million). Any junket investor who holds 5 percent or more capital in the company must also disclose criminal and financial records to authorities to prove their integrity and solvency.
Moreover, junket commissions have been capped at 1.25 percent of VIP rolling chip turnover under the new rules.
According to Macau Business, Macau Legend recently expressed concerns about the losses it incurred during the Covid-19 pandemic, but also said it hopes to continue managing satellite casinos under the license of SJM Holdings, one of the city’s Big 6 casino concessionaires.
