Macau: losses through junkets

Since Casinos Junkets in Macau will be a thing of the past in the future, the government must expect losses. The gaming trips are an integral part of the local industry and largely responsible for the financial income of the Chinese special administrative zone. Due to its elimination, the government expects a loss of almost 80 percent in the corresponding economic segment according to agreed media reports.

The big case of the Junkets!

Casino-junkets have been an integral part of the gambling industry in Macau and for the financial success of the industry for years. But the status of gaming trips has been for several years stagger. they are increasingly lost in popularity and were therefore less and less booked. however, the final case of the junkets was sealed by the former suncity boss alvin chau. the gambling mogul was arrested by the authorities in november 2021 because it Criminal gambling syndicate operated should have – both in Macau and in China. He is said to have tempted numerous people to take part in illegal games of chance. In the course of the investigation, the VIP rooms of the Suncity Group were searched. Other junket operators were also part of the large-scale raid.

Casino-Junkets The so-called “Junkets” are travel that are offered VIP Casino customers. These have the opportunity to travel to a certain casino and play there. Depending on the status of the player, the host casino pays some or all travel and accommodation costs. In return, the VIP player undertakes to play during the stay in the casino.

Junkets more important than casinos?

According to analysts and industry experts, the everyday casino business in Macau does not enjoy the Financial status like the Junkets. For a long time, this claim was critically eyed, but has now been confirmed by the “Financial Sevices Bureau” (FSB) by Macau. The budget for the 2023 budget shows how depending on the gaming sector in the special administrative zone of the Junkets.

Burglary by 80 percent According to the FSB report, Macau will earn around 79.5 percent less by Junkets in 2023 compared to the previous year. The authority assumes income of 43 million mop. This corresponds to about $ 5.35 million.

The precarious situation of the local gaming industry has been through the Corona-Pandemie additionally fired. According to analysts, Macau was forced to do so several times calculated income from gambling to adapt. im Corona year 2020 the income from the casinos has broken completely away. The gambling facilities were closed for months due to the rampant virus. At the end of the 2020 financial year, the city Tax revenue lost in the millions. Due to the junket commissions, only 66.54 million MOP ($ 8.27 million) flowed into the state coffers. That was 68 percent less than the annual forecast.

Beginning of the end?

The case of the Junkets in Macau is not surprising. Based on the official statistics, one can Recognize clear downward spiral. In 2013 there were still 235 licensed Junkets. In 2019 there were still around 100. At the beginning of 2021 the number had shrunk to 85.

Separation of VIP promoters In December 2021, shortly after the annual data collection, there was another decline in the Junkets. Numerous casino operators have confirmed that they separated from the VIP promoters. Galaxy, Melco, MGM, Sands, SJM and Wynn would all have set up their future business models so that they are no longer dependent on the Junkets.

Despite the immense decline of the Junkets, the gambling industry in Macau is completely turned upside down. The numerous casino operators had already taken precautions to compensate for the elimination of the popular gambling trips. So the industry would increase rely on mass -compatible games of chance. at the same time, according to analysts, it is very likely that the junkets will continue to be offered – but under a different business model. edmund loi hoi ngan, professor of sociology and business at the “macao polytechnic institute”, believes in the rebirth of the junkets. in his opinion, the providers will be able to appear as a normal “travel agency” and to offer the gambling trips from a different point of view. this new interpretation of the business model is also In the interest of the economyloi is optimistic that the gambling industry will increasingly recover in 2023. In the city was able to increase its income from 2020 to 2021 by 44 percent. In in the current year it is possible to top this value again. In in his opinion, the gaming market in macau is loi is optimistic that the gambling industry will increasingly recover in 2023loi is optimistic that the gambling industry will increasingly recover in 2023. In the city was able to increase its income from 2020 to 2021 by 44 percent. In in the current year it is possible to top this value again. In in his opinion, the gaming market in macau is the city was able to increase its income from 2020 to 2021 by 44 percentloi is optimistic that the gambling industry will increasingly recover in 2023. In the city was able to increase its income from 2020 to 2021 by 44 percent. In in the current year it is possible to top this value again. In in his opinion, the gaming market in macau is in the current year it is possible to top this value againloi is optimistic that the gambling industry will increasingly recover in 2023. In the city was able to increase its income from 2020 to 2021 by 44 percent. In in the current year it is possible to top this value again. In in his opinion, the gaming market in macau is in his opinion, the gaming market in macau is In a promising starting point. He founded his optimism, among other things, with the close and long -term connection between gambling and Macau.