Category Archives: junket operators

Macau junkets seek higher capital reserves for new operators

macau-junket-operator-capital-reserveMacau 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.

More importantly, the requirement to maintain a larger capital reserve could discourage some sketchier would-be junkets from throwing their hat into the ring. Macau’s junket industry suffered a crisis of investor confidence a few years back when a host of operators folded due to a lack of liquidity and numerous internal theft scandals.

Kwok said his group had also urged the DICJ to require licensing for junket “collaborators,” i.e. associates who help rope in new VIP gamblers and arrange both credit and payments of gambling debts.

A boosted capital requirement wouldn’t have prevented three mainland Chinese men from being scammed by a couple of con artists posting as junket operators. On Tuesday, the Macau Daily Times reported that local police had arrested a man named Song who, along with an accomplice, conned the mainlanders out of HKD 200k ($25,600).

Earlier this spring, Song reportedly told the mainlanders that he was a junket promoter and could provide free food and lodging at a Cotai hotel. Once the men had checked in, Song took them to dinner, then took their money and said he and his partner would be back with casino chips. Only they never returned.

The mainlanders reported Song to the local police, and Song was busted last week while trying to re-enter Macau. Song copped to his guilt in the scam but claimed his share of the stolen funds amounted to only HKD 10k, while his accomplice, who remains at large, kept the rest.


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SunCity draws PAGCOR’s ire over Sofitel casino takeover: report

Casino junket operator SunCity Group is in hot water with the Philippine Amusement and Gaming Corporation (PAGCOR) for reportedly trying “to pull a fast one” on the regulator.

According to a Philippine Daily Inquirer report, the Macau casino junket operator appeared to have taken over the operations of a small casino in the Sofitel Philippine Plaza, a luxury resort hotel located in Manila, from a firm called Success Vine Holdings.

SunCity draws PAGCOR’s ire over Sofitel casino takeover: reportSuccess Vine Holdings has secured a three-year PAGCOR license in August 2014 to conduct junket operations and run the Sofitel casino, which is described in the report as “a relatively small operation.”

However, the state regulator has gotten word—from its own people—that SunCity hosted “a nice little launch party” for the Sofitel casino several weeks ago. A number of PAGCOR representatives were invited to the event, who, in turn, reported to their superiors about the alleged “blessing and soft opening of the relaunched facility.”

In response, PAGCOR chair Andrea Domingo has reportedly sent a letter to Success Vine, telling the operator that it could lose its license for “bringing in SunCity into the picture.” PAGCOR licenses, by law, cannot be transferred to another party with the permission from the regulator.

“SunCity is not licensed by PAGCOR to conduct junket operations at Sofitel Philippine Plaza,” Domingo said, according to the news outlet.

The Sofitel facility was “immediately shut down” several days after its soft launch.

SunCity has a major presence in the Philippines, including deals with Manila casinos as well as its Philippine-licensed online gambling operations. But sources told early this year that the Macau casino junket operator has laid off a sizable portion of its Manila-based online gambling staff. The sources also claimed SunCity planned to shift some online staff to its London office while the management team would be based on the Isle of Man, leaving only a skeleton crew behind in Manila.



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South Korean casinos far too tiny for junkets Kangwon Land will make Forbes 2000

June ten, 2016


kangwon-land-casino-forbest-listSouth Korea’s on line casino current market is even now far too tiny to benefit from a totally formulated romance with junket operators, in accordance to a PricewaterhouseCoopers analyst.

Junkets have built them selves integral to Asian on line casino markets like Macau but PwC Korea companion Glenn Burm instructed GGRAsia that neither junkets nor Korean on line casino operators “have the volume to accommodate the costs” affiliated with bringing in overseas VIP gamblers.

Far more to the stage, Burm reported junkets have failed to achieve a foothold in Korea due to the fact the casinos “prefer to do direct promoting to VIPs.” This success in much less significant-rollers making the trek to Korea but people who do make a lot more profits for the on line casino due to the fact there’s no need to pay junket commissions

South Korea presently has 17 tiny casinos and a range of larger sized integrated resorts in improvement but Burm doesn’t believe the new venues will change the junket dynamic. Burm says initiatives like the Mohegan Tribal Gaming Authority’s joint undertaking are “more of the US model,” i.e. centered on mass current market gamblers, not VIPs.

In the meantime, Kangwon Land, the only Korean on line casino which is permitted to admit Koreans, earned a new feather in its cap by making the most up-to-date Forbes 2000 listing of the world’s biggest general public businesses, which is based on a composite rating from similarly-weighted actions of profits, profits, belongings and current market benefit.

Kangwon Land (pictured) rated #1,928 on Forbes’ listing with a current market cap of $7.8b as of Might 2016. The business carried out even better in terms of profitability (#1,422) and current market benefit (#1,365). Kangwon Land documented product sales of $1.44b and profits of $390.2m in 2015, even though Q1 2016’s revenue of $122m set the business on keep track of to beat very last year’s total.

There have been only seven on line casino businesses on the Forbes listing, led by Las Vegas Sands (#432), MGM Resorts (#989), Galaxy Enjoyment Team (#1,090), Caesars Enjoyment (#1,198), Genting (#1,246) and Wynn Resorts (#1,990).

Wynn’s annual profits of $four.1b is approximately three periods that of Kangwon Land’s but Wynn’s revenue of $173m was a lot less than 50 % of Kangwon Land’s. What’s more, Wynn has to contend in both equally Las Vegas and Macau even though Kangwon Land’s monopoly on nearby gamblers doesn’t expire right until 2025. Ah, certainty.

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