denied the report.<\/a><\/em><\/strong><\/p>\n\n\n\nNow analysts say implementing the e-yuan, which is backed by the Chinese Central Bank, could put VIP junkets out of business.<\/p>\n\n\n\n
The move would \u201cdramatically reduce the need for junkets,\u201d JP Morgan Securities has reported. <\/p>\n\n\n\n
The move would limit the amount of money VIPs would be able to bring into Macau to CNY50,000 (US$7,648), analysts said, and would mark the end of the \u201chefty commissions\u201d high-rollers pay to junkets, which equate to about 44 per cent of VIP gross gaming revenue (GGR).<\/p>\n\n\n\n
However, analysts DS Kim, Derek Choi and Jeremy An said: \u201cWe don\u2019t think investors should make anything of this news, at least for now.” They added the implementation of the currency was \u201chighly unlikely in the foreseeable future.\u201d<\/p>\n\n\n\n
The change would also give mainland China authorities \u201ca greater visibility on gambling activities in Macau, on an individual level,\u201d which could effectively wipe out a VIP sector that accounts for approximately 15 per cent of the casino-operator EBITDA, reducing the sector to non-Chinse VIPs only.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Analysts say the adoption of the cryptocurrency would make the 44 per cent commission paid to junkets unnecessary.<\/p>\n","protected":false},"author":2,"featured_media":12416,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"JP Morgan Securities has evaluated reports concerning Macau's potential adoption of the e-yuan for casino transactions, a move that could significantly disrupt the VIP junket model by eliminating commissions and enhancing regulatory oversight. While this would impact VIP GGR and operator EBITDA, analysts currently deem its implementation highly improbable in the foreseeable future.","focusai_entities":"JP Morgan Securities, Bloomberg, Macau\u2019s Gaming Inspection and Coordination Bureau (DICJ), DS Kim, Derek Choi, Jeremy An, Chinese Central Bank","focusai_location":"Macau, China, Hong Kong","focusai_target_profile":"ceo_executive (0.9), regulator (0.95), compliance_legal (0.9), operator_casino (0.95), payments_fraud_aml (0.95), investor_analyst (0.95), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Junket Model Impact","query":"What specific governance frameworks would need to be established to manage the e-yuan's impact on Macau's VIP junket licensing and operational models, considering the 44% GGR commission?"},{"label":"Regulatory Visibility","query":"How would the increased visibility on individual gambling activities, facilitated by the e-yuan, influence Macau's existing regulatory compliance and responsible gambling mandates for B2C operators?"}],"footnotes":""},"categories":[157,16338,158],"tags":[12436,20582,257],"class_list":["post-12414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-casinos","tag-dicj","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/12414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=12414"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/12414\/revisions"}],"predecessor-version":[{"id":12427,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/12414\/revisions\/12427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/12416"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=12414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=12414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=12414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}