JUNKETS KEEN TO DIVERSIFY BUSINESS

2014/11/19

From：Macau Business Daily

Macau junket operators, also known as VIP room promoters, are seeking to promote their brands and diversify business in parallel with the growth of the mass market.

It’s more than just sitting at the table and playing a few hands – high rollers who come to Macau are becoming more demanding, say local junket operators who primarily promote the VIP market of the gaming industry.
“For the best VIP experience, we have to attend to their every need during their travel in Macau. We offer ferry, airplane and helicopter ticket services, car service, hotel reservations as well as entertainment. Some of them may require tickets to concerts or the Grand Prix, for example. We’ve also launched our own app on mobile devices to keep up with the ever-changing market. It’s no longer just serving a cup of tea at the gaming table,” said Rita Lei, associate director of business development for junket operator David Group.
Based in Macau for 10 years, David Group now owns seven VIP rooms in Wynn Macau, L’Arc, MGM Grand, Galaxy and Four Seasons. The group, seeking global expansion, has even established its own travel company, David Travel.
“Apart from organising tour groups, local tours, we take our VIPs on an adventure across the globe. For some high rollers that want to gamble elsewhere than Macau, we provide trips to other places in Asia such as the Philippines, Laos and Cambodia,” said Ms. Lei.
Macau casinos have been reliant on the VIP high roller sector, which accounted for nearly two-thirds of gaming revenue last year, according to data from the Gaming Inspection and Coordination Bureau (DICJ).
But the landscape has been changing: resort development and mass market growth have creased a US$50 billion run-rate in revenue after nine years of 28 percent annualised growth.
Local junkets operators facing the shifting of the market and fierce competition among their peers are joining the second edition of the Macau Gaming Show to build up their reputation.
“We’re here with the same purpose as every other junket operator: to promote our brand,” said Ridden Wai, marketing manager of Heng Sheng Group. “There are of course potential customers. But there’s also the possibility of finding some funding. ”
“In order to distinguish ourselves, we’ve launched the insurance service against losing bets on baccarat. We’re the only one that has this service in Macau,” said Mr. Wai.
There are more than 210 licensed junkets in Macau with around 190 companies and more than 20 individuals, according to a list issued by DICJ.

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