Junket operators taking up to one year to collect

2014/12/1

From:Macau Business

Macau junket operators are waiting up to one year for mainland gamblers that borrow from them to repay their debts, crippling the VIP gaming business model, Reuters reports.

The news agency quotes junket consultant Tony Tong as saying junket operators usually collect their debts within 30 days and charge interest rates as high as 3 percent per month on whatever is overdue.

Now the junket operators are holding an increasing amount of bad debt as the mainland’s economy grows more slowly and the mainland authorities act to curb corruption.

“The business model looks near broken,” Reuters quotes Standard Chartered analyst Philip Tulk as saying.

Copyright@Macau Business