Key points:
- Macau’s VIP gambling sector is stagnating, with intermediaries under increasing strain
- Regulatory crackdowns and rising overseas competition are shifting market dynamics
The Macau Gaming Intermediaries Professional Association has called on local authorities to consider alternative operating models for VIP gambling. The industry is facing structural difficulties as profits fall, regulations tighten and more gamblers shift to foreign markets.
According to Yu Yaohong, the association spokesperson, the VIP sector is experiencing what he described as “involution." This is a cycle where intermediaries must offer higher commissions and benefits while seeing diminishing returns. Some are now cooperating directly with casino-operated rooms or shifting operations to gambling vessels in order to remain viable.
Macau’s broader gambling industry has also shifted focus, increasing side bets and promoting non-gaming attractions such as concerts in an effort to draw younger players to mid-tier betting. Foreign destinations like Singapore and Jeju are also attracting a growing share of high-value gamblers.
Yu noted that recent regulatory actions targeting unlicensed money exchange operations have made it more difficult for VIP gamblers to access funds. The cost of money exchange within casinos has risen from around 0.4% to approximately 1%, reducing available betting capital. The number of exchange hotspots, such as jewellery shops within casinos, has also declined.
Good to know: VIP junkets were largely dismantled following the renewal of Macau’s 10-year gaming licences
The association expects further moves, with money exchange potentially returning to pawnshops, which was a common channel over a decade ago.
Although some new VIP clients are emerging from sectors such as e-commerce and natural resources, the absence of former high-rollers, especially from real estate, remains a concern.
The group is urging regulators to consider whether elements of VIP and mid-tier gambling can be integrated to develop a more sustainable model.
