Macau junket rep is warning that the local junket operators have to keep up with the times and the pace the industry is developing. The level of capital reserves should be increased, in order to keep abreast with the VIP gambling market, which is on the rise.
This will inevitably guarantee the confidence of investors that the market is indeed profitable and they will pour their funds into various projects. This Sunday saw the interview of the Head of Macau’s Association of Gaming and Entertainment Promoters, Kwok Chi Chung. The Association represents the interests of junkets in Macau, the gambling hub providing casino experience on international level.
Chung stated that junkets registered in Macau are currently sustaining a capital deposit of mere MOP100,000 (US$12,500). As it could be recalled, back in 2016 there was a proposition made by Macau’s Gaming Inspection and Coordination Bureau (DICJ), which suggested that the sum was boosted to MOP10 million (US$1.25 million). This Sunday the proposition was even braver because Kwok gave the idea that the reserve fund should be raised to MOP50 million (US$6.2 million).
This measure is considered because it will guarantee that the new junkets will be capable of hold their ground in the ever changing and variable VIP gambling market in Macau. It was further explained that the requirements for increased capital are necessary because many Macau junkets are turning over multibillions of patacas every month. Kwok Chi Chung clarified that as many as 120 registered junkets, which survived the most recent downturn in Macau’s gambling industry will not be affected by the changes in any way.
On the contrary, the new demand for maintaining larger capital reserve might potentially discourage some sketchier future junkets from making plans for taking part in the big gambling industry of the world’s most rapidly developing gambling hub. A couple of years ago the field underwent a crisis because many investors lost their confidence in the reliability of the market. It was all sparked by the sudden folding of a host of casino operators, due to lack of liquidity and a number of internal theft scandal.
Another important thing Kwo Chi Chung said, was that his group has suggested to Macau’s Gaming Inspection and Coordination Bureau to be more demanding and require licensing for junket partners. These associates assist in the roping in of new VIP gambling enthusiasts and take care of both credit and payments of gambling debts. The measures aim to further strengthen the security in the field and in the VIP sector in particular.