According to president of the Association of Gaming and Entertainment Promoters Kwok Chi Chung, the number of VIP gaming rooms in Macau has shrunk from 146 to around 100 as junket operators continue to be distressed by bad debts and tighter capital liquidity.
Kwok also attributed the VIP room’s closures to the alleged capital theft from local junket operator Dore Entertainment Co. Ltd. in September, which has prompted some investors to withdraw funds.
“The Dore incident really imposed a negative image on the VIP gaming industry,” Kwok told Macau Business Daily.
The need for improvements was further emphasized when the Macau Judiciary Police (PJ) had confirmed that there was another report of theft of at least HKD 99.7m ($12.5m) from a junket operator working out of L’Arc Macau.
Bernstein said that the recent junket fraud case would speed up the government’s plans to introduce greater junket regulation and such regulations could create headwinds in the junket business and may further limit its ability to raise capital and conduct operations.
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