Macau's junket industry faces challenges amid recovery of gaming sector
Macau's junket industry struggles due to the new law's impact on income, while facing competition from neighboring regions, but the city's gaming industry has experienced a strong recovery
Macau's junket industry is facing difficulties as the new junket law has led to a decline in income for operators, leaving only 14 licensed gaming junkets active in the city.
The law imposes a cap on commission rates for VIP junkets and requires operators to pay a 5% tax on their commissions.
As a result, many former junket staff members have sought employment in other countries' casinos, potentially introducing Macau's business model to those regions.
Macau's gaming industry also faces competition from neighboring regions, such as Japan and Thailand, which are gradually opening up for gaming.
Despite these challenges, Macau's gaming industry has shown a strong recovery from the COVID-19 pandemic, with increased casino revenue driven by mainland Chinese tourists.