Healthy for industry, say some operators; but others worry VIP players may shy away
By Jessica Lim & Lim Wei Chean 05 February 2010
More detailed regulations governing how casinos and junket promoters can issue credit were released on Wednesday, to a mixed reception.
Some operators said the strict rules would be good for the industry, while others expressed concerns that they could stifle growth.
The regulations state that casino operators and licensed junket promoters offering credit to premium players must sign a written agreement with those players to spell out conditions such as credit limit and interest rates.
Premium players are gamblers who have a deposit account with the casino operator or junket promoter of at least $100,000 before and at the end of play.
All dealings with clients must be recorded, including the amount of chips issued on credit, when credit was issued, and when the loan was repaid. The books have to be made available for inspection by the authorities when required.
Not only do they need to keep the books on such players here, but casino operators and licensed junket promoters have to maintain these procedures in their operations elsewhere.
Genting Singapore and Las Vegas Sands run casinos in various jurisdictions.
Mr.. Felix Ling, chief consultant of gaming consultancy Platform Asia, said it made sense for Singapore to want the same credit rules here to be applied everywhere. ‘Otherwise, they can do it all offshore and there is no way of tracking,’ he said.
CIMB-GK regional economist Song Seng Wun said the strict regulation of junkets and credit facilities in casinos is to prevent money laundering and organised crime.
Junket operators are the middlemen who, for a commission, bring in high-rollers from all over the world.
They can be large companies with representatives around the world or individuals working the field, like premium travel agents.
Trips for high-rollers, who can gamble more than $10 million a night, usually include free travel on private jets with family members, credit for gambling and 24-hour concierge service. Many become regular customers.
Typically, junket operators earn a percentage of 0.6 per cent to 1.8 per cent of the amount of chips bought by clients, according to gaming websites.
Operators say regulations in Singapore are stricter than those elsewhere.
In Macau, said junket operators, a company just has to register itself as an operator to give out credit.
But the stricter regulations would not stop them from applying for a licence to operate here, said companies.
Key junket operator Neptune Group’s development manager Ben Leong, whose company will be applying to operate a branch in Singapore, said the rules were ‘not a deterrent’.
The policy, he said, could actually work in their interest.
‘They protect us. If players have to sign an agreement with us before we give them credit, if they default, we can then take action against them,’ he explained.
A spokesman for A-Max Holdings, another major junket operator, said that putting up a legal framework for operations on extending credit was ‘a good thing’.
‘The guidelines are good ones that every junket company should follow,’ he said, adding that reliable operators should have internal guidelines on how credit should be extended, in any case. ‘We don’t just give it to any man on the street.’
But, there were also concerns that the tight regulations might turn away VIP players. A-Max Holdings said VIP players might not like to divulge their personal details and shy away from gambling in Singapore.
‘VIP players can be fickle and, for privacy reasons, they may not sign up.’
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Strict casino credit rules draw mixed reactions
Healthy for industry, say some operators; but others worry VIP players may shy away
By Jessica Lim & Lim Wei Chean
05 February 2010
More detailed regulations governing how casinos and junket promoters can issue credit were released on Wednesday, to a mixed reception.
Some operators said the strict rules would be good for the industry, while others expressed concerns that they could stifle growth.
The regulations state that casino operators and licensed junket promoters offering credit to premium players must sign a written agreement with those players to spell out conditions such as credit limit and interest rates.
Premium players are gamblers who have a deposit account with the casino operator or junket promoter of at least $100,000 before and at the end of play.
All dealings with clients must be recorded, including the amount of chips issued on credit, when credit was issued, and when the loan was repaid. The books have to be made available for inspection by the authorities when required.
Not only do they need to keep the books on such players here, but casino operators and licensed junket promoters have to maintain these procedures in their operations elsewhere.
Genting Singapore and Las Vegas Sands run casinos in various jurisdictions.
Mr.. Felix Ling, chief consultant of gaming consultancy Platform Asia, said it made sense for Singapore to want the same credit rules here to be applied everywhere. ‘Otherwise, they can do it all offshore and there is no way of tracking,’ he said.
CIMB-GK regional economist Song Seng Wun said the strict regulation of junkets and credit facilities in casinos is to prevent money laundering and organised crime.
Junket operators are the middlemen who, for a commission, bring in high-rollers from all over the world.
They can be large companies with representatives around the world or individuals working the field, like premium travel agents.
Trips for high-rollers, who can gamble more than $10 million a night, usually include free travel on private jets with family members, credit for gambling and 24-hour concierge service. Many become regular customers.
Typically, junket operators earn a percentage of 0.6 per cent to 1.8 per cent of the amount of chips bought by clients, according to gaming websites.
Operators say regulations in Singapore are stricter than those elsewhere.
In Macau, said junket operators, a company just has to register itself as an operator to give out credit.
But the stricter regulations would not stop them from applying for a licence to operate here, said companies.
Key junket operator Neptune Group’s development manager Ben Leong, whose company will be applying to operate a branch in Singapore, said the rules were ‘not a deterrent’.
The policy, he said, could actually work in their interest.
‘They protect us. If players have to sign an agreement with us before we give them credit, if they default, we can then take action against them,’ he explained.
A spokesman for A-Max Holdings, another major junket operator, said that putting up a legal framework for operations on extending credit was ‘a good thing’.
‘The guidelines are good ones that every junket company should follow,’ he said, adding that reliable operators should have internal guidelines on how credit should be extended, in any case. ‘We don’t just give it to any man on the street.’
But, there were also concerns that the tight regulations might turn away VIP players. A-Max Holdings said VIP players might not like to divulge their personal details and shy away from gambling in Singapore.
‘VIP players can be fickle and, for privacy reasons, they may not sign up.’
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