Opinion | Casino junket stocks much the same as playing slot machines

Casino junket stocks are steaming hot. After all, Beijing's anti-graft campaign doesn't seem to have scared many high rollers into retreat and the stakes wagered on Macau's gaming tables have continued to multiply.

Before making a bet, however, you must understand there isn't really too much difference between the junket stocks and slot machines.

Without exception, what is listed as a junket stock is not the junkets themselves but a profit-sharing agreement with them.

This is how it is done. The junket signs a piece of paper with a shell company promising to share a certain percentage of its profit from bringing in high rollers and providing them with loans. The shell company is sold to the listed company in return for money or shares and gets a backdoor listing.

This is the only way that a junket business can gain access to the image, bank loans and business opportunities that come with listed status.

Other channels, such as a genuine listing, are a no-no for a junkets for many reasons other than concerns about money laundering.