In Macau, February 2026, the Secretary for Economy and Finance has authorized 29 junket operators, signifying a rebound from previous numbers but still reflecting a significant decline from a decade ago. This development marks a 21% increase from 2025, when only 24 licenses were issued, though it remains considerably below the 50 licenses permitted and a stark contrast to the 235 junkets in operation during 2014. The approval is a notable indicator of the ongoing transformation and adaptation within Macau’s gaming sector amidst stringent regulatory changes.
The junket industry, once a major driver of Macau’s casino revenues, has historically been pivotal in attracting high-stakes gamblers by organizing travel, accommodation, and credit. However, this model suffered a severe hit due to China’s anti-corruption initiatives aimed at curbing capital flight and money laundering. High-profile legal cases exemplified the crackdown, including the 2023 conviction of Alvin Chau, who was found guilty of facilitating illegal gaming activities and was sentenced to 18 years in prison. Similarly, Levo Chan was sentenced to 14 years for crimes related to organized crime and money laundering. These cases highlighted the regulatory scrutiny and enforcement action that reshaped the industry landscape.
Under Macau’s stringent 2023 gaming legislation, junkets now face more restrictive operations. Operators are limited to partnerships with a single concessionaire, although concessionaires can work with multiple junkets. This change shifts their revenue model from a share in casino profits to a fixed commission rate of 1.25% on rolling-chip turnover. Additionally, junkets are now prohibited from issuing casino credit and can no longer independently manage VIP rooms, which were previously hotbeds for unauthorized betting activities. These regulatory changes have significantly altered the financial dynamics for junkets, reflected in the shift in revenue contributions from VIP baccarat, which accounted for only 27.48% of total gaming revenue in 2025 compared to 46.24% in 2019.
Despite these challenges, some junkets have sought opportunities in jurisdictions with less stringent regulations. At the G2E Asia conference, attorney Luis Mesquita de Melo highlighted Vietnam as an emerging market for junket-style operations, albeit under different regulatory terms. In Vietnam, these entities function as international tour operators, a classification that allows them to operate in a regulatory grey area, raising potential concerns about oversight and compliance.
Looking ahead, the future of Macau’s junket sector remains uncertain. Analysts, such as those from JP Morgan, anticipate a decline in VIP gaming revenues by approximately 5% in 2026, while mass and slot gaming are expected to experience growth. The ongoing regulatory adjustments present both a challenge and an opportunity for the industry to adapt. As Macau continues to refine its gaming regulatory framework, the focus will likely remain on balancing the need for robust oversight with the economic benefits of gaming revenues. The impact of these changes will require close scrutiny to understand their implications not only for Macau but also for the broader regional gaming markets.
4.6/5
