MGM China confirms end to agreements with junket promoters
The casino operator has confirmed that it too ended agreements with its primary VIP gaming promoters in December 2021.
Macau.- MGM China has confirmed that it followed the majority of Macau casino operators in ceasing all junket arrangements in December. It confirmed the move while delivering its latest financial results.
The company stated: “We have focused our business on main floor gaming operations and, accordingly, we do not expect VIP gaming operations to be a significant source of revenue in future years.
“The majority of MGM China’s casino revenue has been provided by main floor gaming operations in recent years and we expect this customer base will be the primary source of growth in the future.”
Las Vegas Sands, the parent group of Sands China, has also revealed it ended agreements with its three primary junket operators, as has Melco Resorts. The decisions were taken as authorities tightened regulations on VIP junket promoters after the arrests of Alvin Chau and Levo Chan Weng Lin, the heads of Suncity Group Holdings and Tak Chun Group, two of the city’s largest junket groups.
Local media reports also said the decision was influenced by Macau’s new gaming law amendment bill, which includes several restrictions relating to gaming promoters. The bill will allow junket operators to each provide services to only one casino operator.
André Cheong Weng Chon, Executive Council spokesperson, has said the bill would also ban junkets from engaging in revenue-sharing arrangements with casino operators and from operating certain areas or facilities in casino venues.
The bill would also prohibit junkets from turning to third parties to conduct their business, except in “situations deemed necessary by their partners, members of the management body or employees.”
The final draft of Macau’s gaming law amendment bill may be submitted to the Legislative Assembly (AL) for discussion and a vote before the current casino concessions expire on June 26.
