Tuesday, September 27, 2022

Macau gaming bureau to review junket regulation


Macau’s gaming regulator, the DICJ, issued an alert on its website saying it will start revising junket regulation "as soon as possible", according to Bernstein Research.

The DICJ said its main focus will be on oversight and audit of junket promoters. Specifically, to introduce additional requirements on junket promoter's capital, shareholders, guarantee deposit, financial reporting and auditing.

The DICJ will also require a more transparent disclosure of junket promoter's business, including directors, shareholders, principal employees, and collaborators.

Currently, junket promoters are regulated under the Administrative Regulation No.6/2002, which covers the licensing and verification procedures related to the suitability of the junket promoter applicants, their registration with the gaming concessionaires and sub-concessionaires, and the payment of commissions, among other matters. 

As of January 2015, DICJ reported that there were 183 licensed junkets, 158 being companies and 25 being individuals. 

Under the current law, junket promoters may use contractors, provided that the list of contractors needs to be submitted to DICJ. 

Contractors are not licensed, but they are required to provide "certificates of criminal records" issued by their respective place of residence.  

“Near-term, more scrutiny on junket promoters may weigh further on VIP business. We believe it will intensify the consolidation that is already taking place in the junket space. Junket promoters may also find it more difficult to raise capital from its traditional sources,” said Bernstein analyst Vitaly Umansky.

“A tightened scrutiny on junkets' financial matters may also reduce the risk exposure associated with side-betting which is often the direct cause of small junkets' insolvency. Long-term, a tighter government oversight can help restore the confidence and trust within junket space.”

 

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