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This study investigates the regulatory-operational dynamics of the premium market in Macau casinos using a constructivist grounded theory approach. Qualitative in-depth interviews were conducted with 25 participants from three stakeholder groups. The grounded theory analysis identifies seven core categories illustrating the impact of the new regulatory system on the premium direct and premium mass segments in casinos. These categories include regulatory changes and operational challenges, decline of gaming promoters, premiumization of the gaming market, new player retention strategies, cross-border player acquisition risks, presence of unauthorized agents in casinos, and non-gaming development amid international competition. These insights highlight four major regulatory impacts on the industry themes and operational trends, i.e., industry regularization, market premiumization, product diversification, and criminal fragmentation. This study also identifies specific regulatory mechanisms and operational management in premium gaming, such as premium player identification, enhanced operational procedures, multi-tiered market segmentation, and the provision of personalized services. Additionally, stakeholder perceptions of the new gaming regulatory system are explored, with casino and expert groups considering it necessary and junket participants finding it restrictive. From these findings, a conceptual model structured around regulatory functions, compliance, and improvement is developed to provide a theoretical regulatory framework that aligns with the characteristics of the gaming industry in Macau and possibly other gaming jurisdictions.
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This article discusses the new gaming law in Macau with emphasis on the critical aspects concerning the gaming operators, concession regime, and other regulatory obligations.1 Thanks to the gaming liberalization commenced in 2001,2 Macau has experienced tremendous economic growth. The past two decades have seen the rapid development of large-scale integrated resorts, and Macau now ranks among the world's major gaming jurisdictions.3 Policy and regulatory challenges have also emerged along with the growth of the junket-driven VIP business in casinos.4 With the recent amendment of Law No. 16/2001 and the subsequent enactment of Law No. 16/2022, Macau has strengthened the legal underpinnings of its system of gaming regulation to oversee various groups involved in casinos and their industry practices. The present study is among the first to review the scope and impact of the revised gaming law, and associated managerial and operational implications for Macau casinos. Topics covered include policy directions, concession requirements, industry participants, gaming taxes, and fair business practices. This study could provide insights into the “Macau 2.0” project and how casinos are to be operated and managed over the next decade. This article could also provide practical guidance for policy makers charged with formulating gaming policy and regulation in other jurisdictions.
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This review article is among the first to examine the new junket regulations in the Macau gaming industry. Particular emphasis is on the legal and regulatory framework governing the junket activity of gaming promoters and their associates. The recent changes to Macau gaming laws have resulted in stronger licensing requirements for local junket participants and precipitated the collapse of the VIP room system in casinos. Furthermore, this article highlights the policy and managerial implications of the current junket environment for the gaming industry in Macau and possibly other regional gaming jurisdictions. The effects of the new legal environment for Macau junkets could also provide insights into the implementation of similar legislation in other jurisdictions.
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- Journal Article (3)