Macau’s casino junkets, which loan money to Chinese high-rollers for gambling in the city, are recovering as little as 20 per cent of the cash they lend to VIP gamblers, said Kwok Chi-chung, president of Macau’s Association of Gaming and Entertainment Promoters.
“The problem has been building for some time,” he said, adding that in 2013, around 70 per cent of loans were being repaid on time.
Speaking to Bloomberg, Kwok said: “Getting the money back is a bigger challenge now for junkets than before.”
“With a longer payback period, junkets have less money to lend to new customers, and the business size is shrinking accordingly.”
Casinos have shut down at least 30 rooms dedicated to VIP gamblers in the past four months, Kwok said, adding that more closures are sure to follow.
Source: Asia Gaming Brief
