Macau Gambling Junkets in Major Trouble
As many people know, Macau has experienced tremendous casino gaming growth over the past several years. And gambling junkets have definitely shared in this wealth too since they’re largely responsible for the high roller presence in Macau. These gambling junket companies extend credit to Macau’s elite players and collect debts in exchange for big commissions from casinos. Furthermore, they offer luxury services to high rollers and take care of all the headaches associated with planning gambling trips.
Unfortunately, it is the Macau gambling junkets themselves that are experiencing the headaches now amid slowed growth for the world’s largest casino destination. Sure Macau is still growing from the previous year, but it’s not as large of growth as expected. It doesn’t help that China – where the majority of Macau high rollers come from – has some issues with its previously booming economy.
As a sign that gambling junkets are feeling the sting of this, one of the biggest players in the junket industry, AMAX Holdings, has questioned whether or not they’ll survive. Their outlook doesn’t look any better after the biggest stakeholder in AMAX – Ng Man Sun – was viciously beaten inside of his own Greek Mythology Casino. And while the beating wasn’t considered a result of AMAX’s debt, it opens up a whole new problem for Macau.
The special administrative area of China dealt with plenty of violence in the late 1990’s and early 2000’s. Since these days, Macau has worked hard to distance itself from the gang violence of the past. But with Sun being attacked with sticks and hammers recently, it doesn’t bode well for further casino gaming growth.
There are over 200 gambling junkets currently operating in Macau. However, if gaming growth continues moving slowly, there’s little chance for all of these companies to stay in business.