Singapore Junket Business – A “No Show” Syndrome?

Posted: February 9, 2010 in Uncategorized

Commentary by:   Panel on Casino

9th Feb, 2010

Both the English and Chinese newspapers in Singapore flashed out the strange outcome of the luke warm response from the junket community, with regard to their keeness in applying for Singapore casino junket licensing. 

There are some probable reasons, according to our expert panel,

(1)  That the junket promotors are just sitting around and watching the development.  It is too early a stage to call the card. 

(2)  That the recently released casino control (junket) regulation is too tough a regime for the junket business. Hence, it is a turn-off.

(3)  That the true VIP market in this part of the world is too small to waste effort on, coupled with many restrictions imposed on junket, junket players and credit checks.

(4)  That the IR casino per se, has not been able to offer good enough junket commission rates that are considered to be viable for junkets to bear their risk exposure and inconveience.  If the casino is only willing to offer up to 1.3% of turnover (approx. 48% of win) than it is not viable for junkets to take the trouble to bring in players. It is expected that any worthy junket would ask for close to 1.8% or more of chips T.O. for their effort in developing this “tight” VIP market.

Therefore, it is not surprising that at this stage of the game, only two junket applications emerge.

Another newspaper also speculated that the junkets are more keen to go for the easy & less stringent Moneylender’s license to operate in casino instead of the much stricter criteria junket license (The writer claims, afterall the role of junket is about giving credit, i.e. lend money). This is a fool’s idea about Junket.  If junkets could operate based on a simple Moneyldender’s license in casino, why they still need high commission?  What the junkets rely on to mitigate their credit risks and also, bankrolls?   The role of licensed Moneylenders is at best, to facilitate mainly the mass market gamers. 

Does it means that Junkets don't need their commission from casinos?

 

 

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