New junket rules hit operators already bleeding VIP revenue

PAGCOR is moving to tighten oversight of foreign VIP capital flows and junket facilitators operating in Philippine casinos. The Manila Bulletin report signals a regulatory crackdown aimed at controlling how high-roller credit, commissions, and funds from overseas junket operators move through Entertainment City and other licensed venues. The specific mechanics are still emerging, but the direction is clear: more documentation, more scrutiny, and less operational discretion for junket arrangements.

This lands while VIP revenue is already under sustained pressure. Okada Manila reported Q2 GGR down nearly 15% year-on-year. Across Entertainment City, the VIP segment has not returned to pre-normalization levels since the exit of Chinese-facing operations accelerated after 2022.

Junket economics depend on speed and discretion. Commissions move quickly, credit is extended informally, and capital crosses borders with minimal friction. Tighter capital controls attack that model at its foundation. If compliance requirements slow settlement cycles or require documentation that junket operators are unwilling or unable to provide, the partnerships become unworkable regardless of the underlying demand.