AN HOUR before the high-roller touches down in Singapore, and all his details would already have been sent to the Casino Regulatory Authority of Singapore (CRA) - going by new rules released yesterday.

The rules are even stricter on the casino operator and the junket promoter and its representatives, who bring in the big spenders. They will be required to disclose details of their financial history before being licensed to work here.

Flout these rules and they face penalties of up to $400,000.

Junket operators and analysts The Straits Times spoke to said that the rules are in line with what other jurisdictions require, although they admit that some high-rollers may stay away from Singapore if they want their movements kept private.

Before coming up with the rules, the CRA looked at how junket operations are regulated in the United States, Australia and Macau, said its spokesman.

"We are a leading financial centre with a high level of safety and security as a competitive advantage," she said. "We developed a junket licensing regime that would be suitable for Singapore's local context.

"It is developed to facilitate a conducive environment for junkets to operate in Singapore, without compromising on law and order considerations."

This is the last piece of the regulatory framework industry players have been waiting for, before the two IRs open sometime early this year.

For many casinos, junkets account for a large proportion of their gaming revenue - up to 70 per cent in Macau, for example.

Junket operators are the middlemen who, for a commission, bring in high-rollers from all over the world.

They can be large companies with representatives around the world or individuals working the field, like premium travel agents.

Trips for high-rollers, who can roll more than $10 million a night, are tailored to include free travel in private jets with their family members, credit for gambling and 24-hour concierge service. Many go on to become regular customers of a particular junket.

Typically, junkets earn a percentage - about 0.6 per cent to 1.8 per cent - of the amount of chips bought by clients, according to gaming websites.

The rules released yesterday by the CRA cover the working arrangements between casinos and the junket operators, as well as the representatives hired by them.

While some jurisdictions like Macau impose a 1.25 per cent cap on the commission that junket operators can earn, Singapore has left this to be sorted out by the casinos.

As for the disclosure requirements, Singapore's rules are similar to those in New Jersey, where casinos are also required to reveal what freebies they provide to high-rollers, and how much in commissions they pay the junket operator.

Singapore, like other jurisdictions, is taking a tough stand on junket operators due to their reported links with triads and illegal activities like money laundering.

In April last year, Deputy Prime Minister Wong Kan Seng touched on the concerns at the first CRA workplan seminar, where he said that crimes in casinos are committed by "persons colluding with casino employees".

"These crimes range from small-scale schemes such as cheating at tables to more sophisticated schemes such as money laundering, particularly in the case of junkets where large sums of money are transacted between junket operators, their high-roller clients and the casino."

Expanding on this, the CRA spokesman yesterday said that it is important that junket promoters are well-regulated to ensure that the junkets do not provide a cover for crime syndicates to engage in criminal activities.

Beyond the initial checks for licensing, CRA will also conduct periodic investigations to ensure the licensed junket promoters remain suitable.

"The casino operators on their part are also required to ensure that only suitable persons operate junkets in their casinos and that no illegal activities take place," she added.

Resorts World Sentosa welcomed the new regulations as "junket operators play an important role in bringing premium gaming customers into Singapore".

Its competitor, Las Vegas Sands, which owns Marina Bay Sands, was not available for comment, but its chairman Sheldon Adelson said two weeks ago that he did not think the junket representatives would bite.

"There may be one or two - but the Government has said they don't want the Macau-style junket representatives that take a very large percentage of the gross income."

Mr Adelson would rather the casino do business directly with players instead of going through the junket operators.

"We will supply the credit and we will take our chances on the credit and collections."

Mr Adelson's sentiments did not dampen junket operators' appetite to enter the Singapore market.

Mr Ben Leong, a business development manager at Neptune Group, a key junket operator in the Macau market, said that his company "will definitely be applying".

"We have yet to see exactly how detailed the investigations will be, but everything looks reasonable so far," said Mr Leong, who said many of his high-rolling clients had expressed interest in visiting the new casinos here.

He added: "After we get the licence, we will introduce our players to Singapore to try their luck."

A spokesman for A-Max Holdings, another major junket operator, wants to meet the Singapore authorities to find out more about the client details required by the regulator.

"In Macau there isn't that level of record keeping. The books and chips are accounted for, but not the person sitting on the table," he said.

"It is a different world there - they don't even ask for the person's name."

This is a concern shared by a gaming analyst who reckons that "high-rollers may not appreciate disclosing their personal information and therefore may shy away".

However, this will not keep the junket operators away, he feels.

"The checks on junket operators are a standard requirement though, so they should not be turned away by that."

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