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Macau Government Tightens Grip on Gaming Promoters from 2024

Published on: 10/10/2023

In a significant regulatory shift, the Macau government is set to restrict the number of gaming promoters from 2024, with renowned casino operators forming alliances with a limited number of promoters, reflecting a more controlled and regulated gambling landscape. All of this is against the backdrop of considerable changes in Chinese gambling law which now prohibits the influx of foreign junket operators extracting money overseas.

Macau city center.

Macau is initiating a much more regulated landscape when it comes to the promotion of so-called junket operators, prohibiting their existence and operation in the city.
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Starting 2024, a pivotal change is slated to occur in Macau’s gaming industry, as the government implements stringent restrictions on the quantity of gaming promoters. This regulatory move is indicative of a broader strategy to closely monitor and control the interactions between casino operators and influential gaming promoters in the region.

As per the new directives issued by the DICJ, only around 49 promoters will be authorized to liaise with casino operators. This development showcases a meticulous approach by the government to regulate the industry, focusing primarily on collaborators who play a crucial role in bringing influential players to Macau’s VIP casino rooms.

Renowned entities such as Sands China Ltd and SJM Holdings Ltd are forming alliances with nearly 11 promoters each. In contrast, MGM China Holdings Ltd and Melco Resorts have the opportunity to engage with up to seven promoters each, signifying a strategic realignment in partnerships.

Regulatory Shifts and Impact on Industry Dynamics

These regulatory adjustments depict a considerable tightening in Macau’s gambling regulations. The initiative is aimed at ensuring a balanced and well-regulated environment, especially concerning the operations of VIP gaming rooms, which have long been a significant component of Macau’s gambling landscape.

Recent industry trends have highlighted a noticeable 22% dip in the count of gaming promoters since January 2023. This decline underscores the transformative changes underway in the industry, emphasizing the evolving dynamics and the influence of regulatory frameworks on market players.

The influence of gaming promoters is undeniably substantial in shaping Macau’s gambling experiences, as they orchestrate VIP gaming, manage accommodations, and arrange credits, thereby contributing significantly to the overall gaming ecosystem.

New Legislation and its Implications on Junkets

A consolidating bill, passed in December, introduces additional layers of regulation, necessitating government approval for all junket contracts and allowing only corporate entities to function as junkets. This legislative development imposes further limitations and reflects a concerted effort to maintain industry integrity and compliance.

Analyses of the new legislation reveal that junkets are now constrained to working with a single concessionaire and are entitled to a commission, capped at about 1.3% of each chip turnover. Additionally, they are prohibited from sharing the casino’s earnings or utilizing its properties, signifying a reshaping of operational norms.

This regulatory landscape underscores the government’s commitment to fostering a transparent and accountable gambling industry in Macau. The implications of these regulatory shifts will undoubtedly shape the future trajectories of both gaming promoters and casino operators in the region.

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