Casino operators have begun suspending junket operations in Macau, and Melco Resorts and Entertainment, along with Win Macau, are no longer offering junket services. Other operators are expected to close their operations soon.
Melco Resort has suspended all game promotion operations within the Studio City Resort and the City of Dreams facility. The company announced the closing of operations on the websites of both casino facilities.
The operator owns a third property, Altira Macao, in the Taipa region, which reported that it was suspending VIP play in the summer and switching to premium mass promotions. Earlier this month, reports emerged that junket operators were considering switching to premium mass after moving away from the VIP segment.
Win Macau is also scrambling to remove its junket operations from properties in SAR.AR. The company operates Winn Palace as well as Winn Palace located in Cotai. Just a few days ago, Linda Chen, vice president and chief operating officer of Winn Macao Ltd., was asked about the junket business.
Chen said in a statement that it plans to terminate all junket operator contracts by the end . The company's VIP room, managed by a third-party group, will be converted into a public market facility or used for other purposes.
And what about other operators in Macau? Galaxy Entertainment Group Ltd., MGM China Holdings Ltd., SJM Holdings Ltd., Sands China Ltd. All offer services in Macau. Are these operators going to stop the junket service? So far, only Galaxy has announced that there is no update on the matter. Other companies have yet to release any information about Junket.
Macau's junket industry has been at the center of controversy for quite some time and operators are beginning to shift away from once lucrative services. The negative changes began after Alvin Chowchuckwa was arrested and his Sun City Group junket was shut down by authorities.
In the past, Junket was the largest VIP operation in Macau. Macau's gaming regulator announced the closure of the SunCity VIP room. The announcement came just days after Chow was arrested for allegedly taking part in organizing illegal gambling for clients in mainland China. There are also allegations of online gambling services through the Philippines.