Macau sets US$187k as guarantee amount for companies seeking to obtain or renew junket licences

Published on:

Casino junket operators in Macau will be required to provide a guarantee of MOP 1.50 million (US$186,854) each to renew or obtain a license as per the latest announcement by Lei Wai Nong, the city’s secretary for economy and finance.

The document, which was published on Wednesday in the city’s Official Gazette, states that the regulation will go into effect the following from January 1.

According to Macau’s revised gaming law, the deposit is meant to ensure that a business applying for a junket licence will pay the costs associated with determining its suitability and financial capacity, other legal obligations, and any fines that may be incurred “from the exercise of the game promotion activity,” a report from GGRAsia said.

A “gaming management company” will also be required to pay a MOP 1.50 million guarantee, according to Secretary Lei’s announcement, for similar reasons. In contrast to the gaming concessionaires themselves, the management firm is a type of business connected to so-called satellite casinos.

The sub-agents, also known as “collaborators” that work with the junkets and bring in high-value players, will also be paying MOP 500,000.

A bill that governs the licensing and operations of casino junkets and what are referred to as “gaming management firms” in the city received a second and final assent from Macau’s Legislative Assembly a fortnight ago.

Previously, anyone could apply to become a junket; as of now, only companies can obtain a licence to perform the function of a junket. The companies will be required to have at least MOP 10 million ($1.24 million) in share capital and at least half of this capital must be held by a Macau permanent resident who is 21 years of age or older.

Currently, there are 46 licensed junkets according to data from the city’s gaming regulator. 2022 also marks the ninth year of decline of the number of junkets in Macau as the current count is down by 45.9 percent from the last 12 months.