Only 36 junket operators will do business in Macau this year, according to figures published by Macau Business. That’s a stunning reversal of fortune for the once-powerful industry, which earned its keep by bringing VIP gamblers to Macau casinos, arranging their transportation, accommodations and credit lines, and taking a piece of the action.
The current figure marks an 85 percent decline from the sector’s high, in 2013-14, when 235 junkets were licensed to operate in the city, and is a drop of 35 percent from pre-pandemic levels.
In 2014, Macau gaming revenues topped out at US$45 billion, about three times the volume of its closest competitor, Las Vegas. At the time, junkets were responsible for about 60 percent of gaming revenues in the special administrative region (SAR), the only place in China where gambling is legal.
The sector’s decline coincided with the rise of Xi Jinping. Since he became China’s president in 2013, Xi has waged war on corruption and capital flight, and paid special attention to Chinese high rollers, many of whom were reportedly high-ranking party officials laundering illicit income.
According to Pechanga.net, Beijing contends that junkets facilitated capital flight by lavishing high rollers with credit lines that enabled them to move money more freely.
The sector began to collapse in November 2021, with the arrest of Alvin Chau, CEO of the Suncity Group, Macau’s premier junket business. The 48-year-old billionaire was charged with operating a criminal syndicate, illegal betting and money laundering, charges he has consistently denied. Shortly after his arrest, another junket king fell when Levo Chan, head of the Tak Chun Group, was arrested on similar charges.
The verdict in the Chau case is expected this week. Chan’s trial is ongoing. And both junkets are now kaput.
Meanwhile, Macau has instituted stricter rules for the remaining junkets. They may now work with just one of Macau’s Big 6 casinos concessionaires, can’t earn commissions above 1.25 percent of rolling turnover, must pay higher fees to stay in business, and are barred from accepting deposits from casino patrons.
