The thinning ranks of Macau’s casino junket operators could grow even thinner if local authorities proceed with plans to boost capital requirements.
Last year, Macau’s government announced plans to impose new controls on junkets, partly as a reaction to a rash of scandals in which junket investors were left high and dry following internal thefts and shoddy accounting practices.
On Thursday, Bloomberg reported that the special administrative region was crafting new rules that would require new gaming promoters to provide evidence that they had at least MOP 10m (US $1.3m) in working capital, 100x the current base of MOP 100k. The new rules would also require that at least one junket shareholder be a resident of Macau.
The plan assumes that anyone is still interested in starting a new junket operation in Macau. CLSA gaming analyst Aaron Fischer told Bloomberg that his firm didn’t expect “many, if any, new junkets in Macau as the current ones are fighting for survival.”