Once predicted to be "sunset" and even "on the brink of extinction," the Macau gaming intermediary industry welcomed official new approvals in 2026. The Secretary for Economy and Finance of Macau has newly approved 29 gaming intermediaries (commonly known as "stackers") to operate in Macau. Although this number has increased by about 21% from 24 in 2025, it is still far from the official cap of 50, and even further from the peak of 235 in 2014. The change in numbers is just the surface; behind it is a complete reshaping of the industry rules. With China's ongoing crackdown on cross-border gambling and capital outflow, and the implementation of Macau's New Gaming Law, the traditional highly profitable model of gaming intermediaries has become history, and a new era of survival within a strict framework has begun.
Approval numbers rebound, but the industry is not what it used to be
Despite the increase in approved numbers, the current gaming intermediary industry has undergone fundamental changes compared to ten years ago. Analysts had predicted that under strict regulation, the traditional VIP room model would come to an end. As pointed out in the related industry trend analysis on the PASA official website, regulatory compliance has become the top agenda in the global gaming market. The latest approval situation in Macau confirms this: the industry has not disappeared, but is surviving under new rules.
• 2026: The number of approved operating intermediaries is 29.
• 2025: Initially 24 at the beginning of the year.
• 2014 (peak period): Reached 235.
From "dominant" to "supporting role": Dramatic changes in the industry under strict regulation
In the past, gaming intermediaries earned huge profits by organizing luxury client tours, providing credit, and managing VIP rooms. However, this model quickly collapsed amid Beijing's crackdown on corruption, capital outflow, and illegal cross-border gambling. Two landmark cases accelerated the industry's cleanup:
Suncity Group case: Founder Alvin Chau was sentenced to 18 years for over a hundred charges including illegal gambling and criminal group involvement, with undeclared gambling funds amounting to 823.7 billion Hong Kong dollars, causing a government tax loss of 8.26 billion Hong Kong dollars.
Tak Chun Group case: The person in charge, Levo Chan, was sentenced to 14 years for similar charges, involving undeclared gambling funds of 35 billion Hong Kong dollars.
By 2024, only 18 active intermediaries remained in Macau. J.P. Morgan analyst DS Kim pointed out at the time that the traditional intermediary model had "become history".
Survival rules and future trends under new regulations
Today's gaming intermediaries must operate within the narrow track set by the New Gaming Law, and their business model has been completely restructured:
• Revenue model: Changed from sharing income with casinos to extracting a fixed 1.25% commission based on "mud code to code amount".
• Business restrictions: Strictly forbidden to provide casino credit to clients, nor can they independently manage VIP rooms—once a hotbed for illegal gambling activities.
• Partnership relations: An intermediary can only partner with one licensed gaming enterprise, but a gaming enterprise can sign contracts with multiple intermediaries.
These changes are directly reflected in the revenue structure. In 2025, VIP Baccarat revenue was about 66 billion Hong Kong dollars, although it grew by 25% year-on-year, its proportion of total gaming revenue had dropped to 27.48%, far below the 46.24% in 2019. J.P. Morgan predicts that in 2026, mid-field and slot machine revenue will increase by 7%-8%, while VIP room revenue may decrease by about 5%. Some intermediaries are beginning to look for markets with more relaxed regulations, such as Vietnam. A lawyer pointed out that Vietnam's "international tourism operators" are essentially intermediaries, but they operate in a lightly regulated gray area, posing risks.
Conclusion: The survival story of Macau's gaming intermediaries is a history of transformation from wild growth to dancing with shackles. The approval number of 29 symbolizes a more streamlined, more transparent, and more controlled industry pattern taking shape. In the future, the role of intermediaries will further evolve from past "power centers" to service providers. How to find sustainable profit points in this highly regulated new era will be the core challenge for all practitioners. For more insights into global gaming regulation dynamics and compliance strategies, please continue to follow the special interpretations on the PASA official website.
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This article is from "PASA-Global iGaming Leader," a gaming industry news channel: https://t.me/pasa_news
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