Blockchain For Macau’s Gambling May Be Just What The Government Needs

At this moment in time, the gaming industry in Macau is growing month on month and year on year. 

Just look at the Total Gross Gaming Revenue (GRR) for Macau and you can see that it has been growing steadily in 2017.

Data is from the Macau Gaming Inspection and Coordination Bureau shows that on average, Macau brings in a GRR of between $2 billion to $3 billion USD monthly. 

And it is understood that VIP gaming accounts for 50% to 57% of the GRR. This makes VIP gaming revenue a really lucrative industry for Macau.

Junket Operators

The gaming industry has many technological advances over the years but these innovations has been focused on the gambling floors to attract more gamblers, such as better slot machines, and better detection capabilities to detect cheaters. 

But these technological advances are also primarily focused on the commercial gamblers. The VIP gaming rooms or junket had not changed drastically in appearance and operations.

The blockchain will bring much needed innovations to ease some of the pain points in the junket industry. First of which is the high cost of transactions to support the VIP gamers to bring their wealth into the junket rooms as well as the transfer of winnings by the gamers; back to their own countries.

Using blockchain for transfer of value across borders, is what is needed by the junket operators as well as their high-roller gamers. This will lower the cost for the junket operators from 5% to closer to 1%; a huge amount considering that each day, turnovers for VIP gambling in Macau are in hundreds of millions. 

Macau Government

The junket industry had faced huge pressures since 2014 when China launched their anti-corruption drive that lead to the entire gambling industry to result in more than 2 years of declining revenue.

This has all turned around but the Macau government continues to want to monitor the junket industry closely to prevent another shock to the whole industry. Take a look at these reports.

https://calvinayre.com/2017/11/14/casino/macau-tight-leash-junket-operators/

https://calvinayre.com/2016/10/25/casino/macau-court-ruling-junkets-investor-funds/

If you have yet to read the above articles, you should. 

I always advocate that ICO investors do more research before investing. And on top of the positive potential of ICO, we should all be cognizance of the headwinds of the ICO too.

Could we assess that government monitoring, of junket operators and their junket operators, will be harmful to the entire industry? No!

I do not agree that the government controls will be negative for the junket industry. I think this is important so that the junket business can be allowed to thrive in this Special Administrative Region of China.

Blockchain will allow greater oversight by the Macau government to monitor the junket industry and also provide a vehicle for audits. A proper KYC (know your customers) will also help the Macau government to reduce illegal activities by some of the gamers and even junket operators. Dragon Inc has all these in place and will be able to be on the good side with the authorities.

Dragon Inc is bringing the blockchain to the old world junket operations that will benefit both the junket operators and their VIP clients, and at the same time, the cryptocurrency Dragon Coin (DRG) will allow the Macau government to be able to keep close tabs on the VIP gaming market and to allow the junket industry to be sustainable.