Macau-based veteran Junket operator Uio Hung, head of the Macau Game Promotion Professional Association, told GGRAcia that the group submitted a letter to Mr Ho on February 6. The group is currently awaiting feedback from the Macau government.
Junket, also known as a game promoter, has been granted permission by the Macau government to promote VIP games in casinos in the city. They are offered incentives to bring players to casinos, and such fees are limited to 1.25%. 파칭코사이트인포
Since the city’s casino sector was liberalized in the early 2000 s, a 5% withholding levy paid by the Macau government has been levied on fees paid to junkets by game operators.
By the end of last year, Junket was able to benefit from legal provisions allowing the Macau government to approve a full or partial exemption from taxation on Junket fees or remuneration paid in kind, such as transportation, accommodation, food and drinks, and entertainment. But with regulatory changes enacted since early this year, that is no longer possible.
Junket is now urging the government to take advantage of other legal provisions that, according to information released, already existed but have not been used since 2007. The clause allows the city’s executive secretary to approve a full or partial exemption of up to 2 percentage points from taxation on junket fees or remuneration. However, the exemption cannot exceed a total of five years.
“The Macau CEO is likely to waive some of the levies on fees paid to Junket. That’s just what we’re urging the government to do,” U told GGRAcia.
According to U, the newly established Macau Game Promotion Professional Association has 50 industry members, including 11 licensed junket operators in Macau.
Macau currently has 36 licensed junket operators, according to data released by Macau’s gaming regulator in early January. But less than a third of them are currently active in the market, and only half of Macau’s six game concessions work with Junket partners, U said.
Macau junket operators are prohibited from sharing casino profits with casino operators who work with them “in any form,” although a revised law on junket approved by the city council in December would allow them to receive fees for game promotion services. The latter was the usual business model for Macau junket operators until last year.
With the end of the revenue-sharing business model and the change in how levies are applied to fees paid to Junket, it means that the operating costs of Junket will increase, U said.
“With this levy on fees, we are also at a disadvantage,” he said, referring to the fact that VIPs directly operated by VIPs, or casino concessions, are not subject to this levy.
Under the revised legal framework that went into effect in January, each Macau junket is only allowed to partner with a single game operator.
During 2019, before the COVID-19 pandemic, the VIP segment, including Junket operations and direct VIPs, accounted for 46.2% of Macau’s casino’s total game sales.
Macau’s junket sector has since suffered a major decline in businesses sparked by higher regulatory scrutiny in mainland China, the largest source market for VIP customers for local and urban casinos. This coincided with the high-profile detention of two of the biggest junket bosses, Sun City Group brand’s Alvin Chowchukwa and Takchun brand’s Revo Chan Wonglin, on separate charges of running an illegal gambling business.