Macau Top Gambling Leaders Consider Further Industry Regulation
For he first time since the liberalization of gambling all Macau’s gaming concessionaires and sub-concessionaires have gathered to discuss gaming market regulations. The gathering was planned by the Macao Special Administrative Region (SAR) government. Top representatives of six gaming operators, together with Stanley Ho and Las Vegas Sands’ Asian Region President Steven Weaver were present at the meeting with government officials. In the beginning it was meant to meet for the purpose of discussing future development of the industry since all newcomers had been banned to enter the gaming market of the city by the SAR government. However, then the discussion was mainly focused on issues concerning junket commissions and gaming table number, reported to Tam Pak Yuen, secretary for economy and finance of the SAR government, who also visited the meeting. He went on to add that most of the representatives consent that the commission should set a lower maximum rate than the current market level. Nevertheless, opinions parted as it came to the number of gaming tables allowed for each concessionaire. The government of the city is in charge of gaming industry regulation and favorable development, stated Tam Pak Yuen. Now it is a high time to take more active measures so that to allow the operators to exchange their opinions. Three operators have welcomed the decision. Among those are local gaming magnate Stanley Ho’s SJM, Melco International, and Wynn Macao from Las Vegas. Stanley Ho said after the meeting that he saw only two ways of managing the situation with the competition, which is to control the number of gaming tables for each licensee and the number of commission rate. Certain percentage of their revenues in the VIP gaming rooms, casinos give to junket operators who provide the flow of high-roller players. In 2007 for instance, the VIP market contributed more than 67 percent of the total games of fortune revenue, as reported the Gaming Inspection and Coordination Bureau. So, since Melco Entertainment Limited’s Crown Macau casino resort increased its maximum junket commission to 1.35 per cent thus making it the highest in the market. The deal took Crown from a total market share of 4.9 per cent in July last year to what company executives declared Macao’s biggest VIP house in February this year with a 21 per cent share of the high-rollers market. During the meeting Ho made a proposal to set maximum commission rate and gaming table number for every concessionaire or sub-concessionaire at 1.25 per cent and 1,000 respectively. However, this offer was not welcomed as Las Vegas Sands representative disagreed and proposed to make in 1.5 per cent, which is sheer nonsense, as stated Ho.
