Macau Commission War Raises ‘Sub-Prime’ Junket Debt Fears

Junkets have played a vital part in insulating Macau’s casino licence holders from defaults on credit extended to their high-rolling VIP clients, but that situation may now be changing. Moves towards direct VIP marketing on the part of operators including Las Vegas Sands and SJM, as well as a new cap on junket commissions, suggests the Macau VIP market is approaching a dangerous crossroads.