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How to earn on gambling in Macau
07.06.2018
Macau is the world’s gambling capital that brings together casino lovers from across the globe. If you want to earn on gambling in the Chinese special administrative region and enjoy all the benefits of gambling tourism, we have prepared a material revealing how to obtain a gambling promotion license in Macau, the so-called Asian Monte Carlo.
Development of gambling industry in Macau
Macau legalized gambling in 1847, 84 years earlier than Las Vegas. Macau’s first gambling venues were established in the mid-nineteenth century. Hundred years later, the region authorities decided to issue only a single gambling license to Hong Kong entrepreneur Stanley Ho in 1962. He owned the whole gambling business in the region up to 2002.
In 2002, the Government of People's Republic of China annulled the monopoly by granting new gambling licenses to two US operators: Las Vegas Sands and Wynn. Later, another three operators entered the Macau gambling market using sublicenses.
Gambling legislation features
According to Changbin Wang, a gambling business specialist, the region has the so-called concessional licensing system. In other words, to receive a gambling permission in Macau, you should win an open tender and obtain the right to run a gambling business within five years. Afterwards, it is passed to the state. However, a lot of people criticize such a system, as the monopoly does not encourage the gambling market development.
One more aspect is the term of current casino licenses: they expire in 2020 and 2022. By the way, Changbin Wang believes that the authorities will probably have to increase the amount of permissions.
Junket promoters
Another type of profitable gambling business in Macau is junket promotion: special companies promoting gambling businesses. They conclude the agreement with gambling operators (there are six of them in Macau) and get a fee on the revenue from lured VIP customers. Frequently, to achieve this, the companies pay for gamblers’ expensive flights, living in five-star hotels, and all the related expenses. Such a business requires a special license from the Gaming Inspection and Coordination Bureau of Macau (DICJ).
Besides, the highest tax is imposed on casinos and VIP tables. Operators pay 40% of profit from them.
How to get a junket license
With only six operators being allowed to organize games of chance in the territory of Macau, you should wait until 2022 and participate in the open tender in order to receive a gambling license. Moreover, it will be possible only if current operators do not extend their permission and the Chinese authorities will increase the amount of certificates.
On the other hand, you can obtain Macau’s junket license. Junket promoters are responsible for a fraction of revenue that gambling venues receive from VIP customers. They offer rich guests luxurious journeys and leisure in return of the time spent in casino.
According to the legislation of Macau, to gain a junket license, you should fulfill the range of requirements:
- An applicant must cooperate with one of six licensed gambling operators.
- A company must be registered in Macau but cannot be a shareholder of one of six casinos.
- The applicant must provide information about the board of directors and shareholders whose share exceeds 5%.
- To receive the certificate, the applicant must provide the guarantee deposit of $100,000. A part of this sum will be returned after license receiving.
The license is valid within a year. To extend it, you should address the Gaming Inspection and Coordination Bureau of Macau no later than September 30.
Despite the fact that the gambling license can be gained only in 2022, junket promotion is also a perfect way to earn on gambling. Currently, 109 companies engaged in casino advertising and VIP customer capture are operating in Macau.
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