ASIAN JUNKET & HOW IT WORKS
VIP junket operators, also known as VIP room promoters, act as facilitators for billion-dollar casinos, guaranteeing a certain amount of revenue from wealthy gamblers, luring them with free accommodation, travel and other perks and the only place in is where casino gamble is legal.
The VIP junket operators have a network of agents, known as sub-junkets whose job it is to select VIP patrons to gamble. Sub-junkets, or agents, are usually localized groups and familiar with the credit history of their clients. The sub-junkets receive commission from the VIP junket operators for giving credit to gamblers and are responsible for collecting debts.
Junket agents usually operate on a settlement cycle, so a rise in bad gaming debts would likely be quickly offset by a pull back in new credit issuance.
The commission model could and can be at a fixed rate of 1.25 percent of VIP rolling chip turnover and the casinos remain responsible for gaming taxes. The win rate model is when VIP junket operators split the gross gaming win with the casino and also share the downside risk.
EUROPEAN JUNKETS & HOW IT WORKS
European Junkets are based on Rebate on Losses.