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Macau To Cap It
14/10/09

The six operators of the casinos in Macau have met with government gaming authorities and have come to a consensus that the overall growth of Macau needs to be capped. The operators have agreed that the overall size of the gaming market cannot be aggressively expanded forever and needs to be eventually capped to ensure over competition does not set in on the current operators.

Representatives from all six operators in Macau including Las Vegas Sands Corp, Wynn Resorts Ltd, Mel Crown Entertainment Ltd, Galaxy Entertainment Group Ltd, MGM Grand Paradise Ltd and SJM holding limited met together to discuss many other issues that were obstacles to the owners. Apart from just bringing lots of tourism and media to Macau, the presence of the casinos has warped the local labour market and led to raising commission rates for local junket operators. The meeting saw operators agree the maximum commission rate for junket operators to be 1.25 percent. An industry group will be established to ensure operators come together regularly to discuss the best methods of managing Macau's casinos.

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