Inside Asian Gaming

IAG APR 2022年4月 亞博匯 40 IN FOCUS IAG: We had already seen the industry contracting in recent times with fewer junkets licensed by the DICJ. This has now been accelerated with the recent developments. How much further do you see the industry contracting in the coming years? KCC: At its peak, there were 200 to 300 promoters in Macau, but after the recent big adjustment, there are only 46 promoters left. Of these 46 promoters, some still don't have a contract with operators, so some of them are hibernating. I think there are not many promoters operating in practice. It is such a large adjustment for the market. What promoters face now is not only the recent shock of the cases [of Suncity and Tak Chun] but also the bad economy and lack of clients. Business is very difficult. You need to check if there is enough production line, and if not, you will be out of this business naturally. IAG: Is there still a future for junkets in Macau? How do they need to change the way they operate? KCC: The business model of junkets is gone and we are back to the starting line. The promoters will work like they did before the gaming market opened [in 2002] by doing chip rolling and earning a commission. If any promoter thinks this business is still profitable, they can keep going. Like I always say, nobody would run an unprofitable business. IAG: Traditional junket operations have also been heavily targeted under proposed amendments to the gaming law. Generally speaking, how do you feel about these amendments? KCC : After I read the contents of the gaming bill, I realized it will force a big change to the business model of gaming promoters. In the future, there will be no Macau promoter operating junkets. I want to emphasize one thing: when the rules of a game need to be changed, you can decide on your own whether to continue playing. There is no right or wrong when there are so many