Inside Asian Gaming

inside asian gaming July 2016 28 With Macau no longer able to rely on its traditional junket model, operators should consider exploring some new options in regards to their VIP offerings By Steve Karoul Casino junkets: part art, part science, part voodoo C asino junkets are a very interesting subject. Casino junkets, junket reps and independent reps who organize individual “splinter junkets” exist all around the world today. Splinter junkets or “splinters” is a slang casino term for individual players as opposed to a large group of players. There are approximately 2,500 to 3,000 legitimate licensed casino operations located around the world. Not all but many of these casinos either have a junket program in one form or another or engage junket reps or independent reps to bring qualified players to their casinos. Junket programs and rep commission programs vary drastically depending upon which part of the world the casino is located in. For example, almost all casinos in Asia use the Non- Negotiable Chip Rolling Program where commissions are based upon the turnover of chips. However, in other parts of the world Non-Negotiable Chip Rolling Programs are almost non-existent. One has to wonder why? First, we have to understand that junkets in any form represent a risk/reward type of situation for the casino. The risk side of the equation translates into dealing with unknown players, unknown sub-junkets or independent reps and they are usually very expensive programs for the casino. Non-Negotiable Chip Rolling commission programs in Asia normally pay anywhere from1% to 1.8%commission on a hold percentage of 2.7% for baccarat. This means that on the higher side of the commission spectrum, casinos will actually pay out 50% to 70% of their hold percentage on the game. In other words, the junkets are actually earning more than the casino on this business despite the fact the casinos have invested hundreds of millions of dollars in building these magnificent properties. So one naturally has to ask how the Features Steve Karoul is a well-known casino consultant with over 37 years of hands-on experience in well over 100 countries. He has extensive knowledge of Asian casino and junket operations. He is also a gaming industry innovator who openly shares his ideas and thoughts with fellow casino industry executives. For additional information, Steve can be reached at skaroul@euroasiacasino.com or www.euroasiacasino.com