Macau's junket model breaks down as gamblers walk away

Macau

JUNKET operators that connect China's wealthy punters to Macau's casinos are waiting as long as a year for gamblers to repay billions of dollars of loans, crippling the business model of an industry that sustains the world's biggest casino centre.

These businesses, which lend to high rollers and operate private gambling rooms, normally collect within 30 days and charge interest rates as high as 3 per cent per month on overdue balances, according to Macau-based junket consultant Tony Tong.

Now the junkets a…