MELCO, SANDS CAP JUNKET COMMISSIONS, DRIVING UP CASINO STOCKS Bloomberg.com
MPEL and LVS have agreed a junket commission cap of 1.25%, effective since July 1st. The Macau government has said it plans to limit commissions paid to junket operators, but that didn't stop MPEL and LVS taking the initiative to agree to implement a cap on the commission paid to junket operators. The companies are effectively coordinating in order to squeeze the middle man. Ho states that there has been no ill effect on volumes as a result of the new policy, "Our volume has been stronger than ever."
This is the first significant instance of cooperation between gaming companies since they formed a coalition in April to limit competition in the face of declining revenues.
