Macau needs to not only diversify its revenue, it also needs to improve its image, said Paulo Martins Chan, director of the Gaming Inspection and Coordination Bureau.
Chan made the comments during the G2E Asia conference this week.
“We will continue to further strengthen and refine our laws and regulations and to improve the overall quality rather than quantity of the gaming industry,” said Chan.
However, the tighter rules are likely to hurt the junket industry short-term, warned analysts.
“This increasing scrutiny and policy tightening, while positive for the segment’s long-term prospects, will likely be detrimental to the shorter-term prospect for the junket operators, VIP revenue, and their related activities,” said Jamie Soo, analyst at Daiwa Capital Markets in Hong Kong, reports Reuters.
“Junkets facing further operating pressures may result in further VIP room closures,” he added.
And it’s not just Macau’s casino that are affected by the bad debt from VIPs, earlier this week, Genting Singapore said its bad debt provision more than doubled quarter on quarter in 16Q1.