Macau casino junket operators should be required to maintain significantly higher capital reserves to keep pace with the resurgent VIP gambling market and ensure investor confidence, according to a local junket rep.
On Sunday, Macau broadcaster TDM featured an interview with Kwok Chi Chung, the head of Macau’s Association of Gaming and Entertainment Promoters, which represents junket interests in the world’s top casino gambling hub.
The current capital deposit threshold for Macau-registered junkets is a mere MOP 100k (US $12,500). In April 2016, Macau’s Gaming Inspection and Coordination Bureau proposed boosting this sum to MOP 10m ($1.25m). On Sunday, Kwok went even further, suggesting the reserve fund should be raised to MOP 50m ($6.2m) to ensure new junkets are capable of withstanding the occasionally wild variance of Macau’s VIP gambling market.
The following day, Kwok told GGRAsia that the increased capital requirements were needed to keep pace with the “multibillions” of patacas that many Macau junkets were turning over on a monthly basis. Kwok said the roughly 120 registered junkets that survived Macau’s recent downturn “would not be affected” by the change.