Macau has recently approved two new gaming intermediary companies' operating licenses, does it sound like this industry is going to be lively again? However, the total number is only 31, which is still far from the official cap of 50. According to the announcement by Macau's Gaming Inspection and Coordination Bureau, the two newly joined intermediaries are called "Xinwei One Person" and "Bole Gaming Promotion", and they can now legally provide services to the VIP room's wealthy clients.
It is worth noting that this number has indeed slightly increased from 29 at the end of last year, but it is a world apart compared to the peak period ten years ago. In 2014, there were a total of 235 gaming intermediaries operating in Macau, contributing about 70% of the casino's total revenue. So, why has the number of intermediaries shrunk so much now? The story behind it is actually quite complicated.
From Glory to the Abyss: The Rise and Fall of Macau's Gaming Intermediaries
If you have followed the news of Macau's gaming industry, you might be familiar with the term "gaming intermediary". Simply put, they are middlemen who specifically provide services to wealthy clients (especially those from the mainland). At their peak, they could even help arrange credit and capital turnover, bypassing the then daily foreign exchange limit of 20,000 yuan.
However, the good times did not last long. With the advancement of the anti-corruption campaign, various problems in this industry began to surface. In 2014, the intermediary "Huangshan" absconded, leaving behind a debt of 10 billion Hong Kong dollars; in the same year, another group's boss Ji Xiaobo was identified as a criminal leader. More seriously, in 2015, a "stacker" directly took away 700 million Hong Kong dollars of casino funds.
The real fatal blow to this industry came in the past two years when two "intermediary kings" were arrested. In 2023, Alvin Chau of Suncity Group was sentenced to 18 years in prison for illegal gambling and other charges, his "betting bottom" technique caused the casino to lose more than 800 billion Hong Kong dollars in bets, and also led to the government losing over 8 billion Hong Kong dollars in tax revenue. Soon after, Ronglian Chen of Tak Chun Group was also sentenced to 14 years for similar crimes.
New Regulations: How Can Gaming Intermediaries Operate Now?
After a series of shocks, Macau introduced new gaming laws in 2023, imposing strict restrictions on the operation of intermediaries. Now, they can no longer issue credit or directly manage VIP rooms, and each intermediary can only cooperate with one casino. However, casinos can sign contracts with multiple intermediaries. Additionally, the revenue model has also changed—it is no longer a split, but a fixed 1.25% commission on "turnover numbers".
Does it sound a bit like "working for someone else"? Although there are 31 officially registered intermediaries, only about 20 are actually active. Even so, the Macau government expects that the tax revenue from intermediary commissions is expected to reach 150 million Macau patacas by 2026, a 50% increase from the 100 million Macau patacas projected in 2025. Would you like to learn more about the compliance details of gaming intermediaries or the latest market dynamics? You can visit the PASA official website for more comprehensive industry analysis reports.
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