Macau authorizes 29 operators under unprecedented state control
The junket sector is consolidating its new era of stability with a slight increase in licenses for 2025. However, the business model has changed forever: autonomous VIP rooms and direct credit are a thing of the past after regulatory pressure from Beijing.
Macau has signaled the beginning of a phase of controlled stability for its junket segment by authorizing 29 operators to operate during 2026. Although the figure represents a slight increase compared to the 24 licensees at the beginning of 2025, the number is merely a shadow of what the market was in 2014, when 235 companies dominated the sector.
This scenario confirms the survival of a model that many analysts had written off after China's crackdown on corruption and illegal capital outflow. What remains today is a smaller, but strictly monitored, market.
The End of Financial Autonomy
The validity of the new licenses is accompanied by inflexible rules that have dismantled the old business model. Following the convictions of key figures such as Alvin Chau (Suncity) and Levo Chan (Tak Chun) for financial crimes, legislation redefined the operator's role:
- Exclusivity: Promoters can only be partners with one casino concessionaire at a time.
- Credit Prohibition: They can no longer issue credit directly to players, a function that now falls solely to casinos.
- No Own VIP Rooms: Autonomous management of exclusive rooms has been prohibited; they now operate under the direct infrastructure of the casinos.
- Fixed Commission: The revenue-sharing model disappeared, replaced by a fixed commission of 1.25% on chip volume.
A Shift in the Revenue Pie
The impact of this "regulatory encirclement" is evident in the financial projections for 2026. While the mass market is emerging as the new engine with an estimated growth of between 7% and 8% (according to JP Morgan), VIP revenues have fallen drastically. What once represented almost half of Macau's turnover, today accounts for barely 27.5% of the total.
The "Spillover" Effect to Vietnam
Given Macau's strictness, the flow of high rollers is seeking new frontiers. Legal specialists warn that part of the activity is shifting to jurisdictions with more lenient oversight, such as Vietnam.
In these markets, some international tourism operators act similarly to the old Macau junkets, but without the current compliance constraints, which is starting to raise global alarms about transparency and compliance in Southeast Asia.
Tags: Macau, Macau casinos, Macau casino regulation, casinos in Macau