Junkets are unlikely to ever be pushed out entirely. That’s both because of their knowledge of wealthy gamblers in China and their willingness to take on credit risks that casinos won’t.
Vigorous Checks
There are more than 200 licensed junket operators in Macau. They have extensive networks in China of people who know the tycoons in a city or province, and have at least a rough idea of individuals’ net worths.
Junket operators can afford to be more liberal with credit extensions than casino operators, according to Hoffman Ma, deputy chairman of Success Universe Group Ltd., the operator of a casino resort in Macau. The U.S.-based casinos typically require more vigorous credit checks, something that VIP players don’t like, according to BNP’s Kim.
“There are limits as to how much casino operators can do in recruiting direct VIPs,” Kim said. “VIPs are loyal to junkets -- but not the casino operators.”