For the first time in history, two Macau casino companies have creased doing business with VIP operators or as they are better known, junket operators. Wynn Macau and Melco Resorts and Entertainment both ended any relationship they had with the operators in late December.
At one time VIP operators provided the majority of revenue for Macau casinos, but in the last few years that revenue has been falling, and now represents less than 30 percent of revenues. The arrest of Suncity’s former CEO Alvin Chau has accelerated that decline, as most Macau gaming companies have committed to easing their dealings with junkets.
While Wynn Macau has eliminated junkets at its properties, Wynn and Encore Macau, and Wynn Palace, Melco has halted business at the City of Dreams and Studio City complexes in Cotai, while the Altira property in the Taipa is committed to halting junkets by July 2022.
Wynn and Melco will convert that former VIP spaces to the premium mass market. While this term is only used for Macau gaming, it is generally expected that instead of the junkets operators, casino executives would be operating the VIP markets.
