VIP baccarat GGR climbs to $2.02B in Q2

Macau adds junkets but sector remains below capacity amid regulatory and tax pressures

2025-07-18
Reading time 1:04 min

Macau has increased its roster of licensed gaming promoters to 29, up from 25 in May, the city’s gaming regulator said, but the number remains well below the government’s cap of 50 as structural and fiscal headwinds continue to constrain the junket sector.

The Gaming Inspection and Coordination Bureau’s (DICJ) latest data shows that licensed junkets - officially known as gaming promoters - now account for just 58% of the government’s allowed total.

Once central to Macau’s VIP gambling ecosystem, junkets have been significantly curtailed under a new regulatory regime that took effect on Aug. 1, 2024. The rules prohibit junkets from issuing gambling credit, reserving that function solely for licensed casino concessionaires. Junkets are now only permitted to earn commissions for referring players to casinos.

A 5% withholding levy on those commissions has further dampened interest in the sector. The Macau Gaming Promoter Professionals Association has petitioned the government to remove the tax burden, but authorities have not agreed to the request.

Despite the sector’s sluggish growth, Macau’s VIP baccarat market posted strong gains in the second quarter of 2025. According to data released Wednesday by the gaming bureau, gross gaming revenue (GGR) from VIP baccarat rose to MOP16.33 billion ($2.02 billion), up 13.0% from the previous quarter and 22.7% from a year earlier. VIP baccarat accounted for 26.7% of Macau’s total Q2 GGR of MOP61.11 billion.

A July 9 note from Citigroup said that house-managed VIPs, also known as direct VIPs, may have helped drive the increase, supported by high-profile entertainment events. However, the note cautioned that the shift likely placed pressure on industry EBITDA margins.

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