Macao’s “satellite casinos” are slated to cease operations by 31 December. The announcement, made yesterday at a press conference at Government Headquarters, confirmed that gaming concessionaires SJM, Galaxy, and Melco will terminate the operations of their respective satellite properties and will be required to retain all current staff.
The venues set to close include the Grandview, Legend Palace, Fortuna, Landmark, Ponte 16, Le Royal Arc, Emperor Palace, Kam Pek Paradise, and Casa Real, all operated under SJM; Galaxy’s Waldo; and Melco’s Grand Dragon.
The decision to shutter the properties has been made in anticipation of regulatory changes to the city’s gaming laws, according to multiple media reports.
The term “satellite casinos” refers to businesses under the licence of one of Macao’s six gaming concessionaires but operated by third parties within premises not owned by the concessionaire. These casinos have historically functioned under a partnership model, where revenue is shared between the concessionaire and the third-party operator.
However, amendments to Macao’s gaming law, passed by the legislature in 2022 and implemented at the start of the new 10-year concessions on 1 January 2023, mandate that all casinos must operate from premises owned by their respective concessionaires. The legislation included a three-year transition period, expiring on 31 December this year, during which existing satellite casinos could continue to operate under the previous partnership model.
[See more: Analysts forecast a large drop in Macao’s gross gaming revenue for June]
Following this transition period, any casino not housed on concessionaire-owned premises would have to be operated by a “management company” hired by the concessionaire. Crucially, this management company would no longer be permitted to share revenue with the concessionaire, instead receiving only a management fee.
André Cheong Weng Chon, the secretary for administration and justice, stated at the press conference yesterday that the government had already received official notifications from SJM, Galaxy, and Melco concerning their decisions to close the 11 satellite casinos. He clarified that while the three-year transition period officially expires at the end of the year, the concessionaires have elected to close the satellite casinos earlier based on their own commercial assessments.
In addition, Cheong announced Melco’s plans regarding its six Mocha slot-machine parlours. Melco will close the Grand Dragon, Royal, and Kuong Fat parlours but will apply to continue operating the Golden Dragon, Inner Harbour, and Sintra parlours by hiring management companies.
A key concern has been the continued employment of the approximately 5,600 local workers at the satellite casinos. Tai Kin Ip, the secretary for economy and finance, confirmed that the government has mandated that the concessionaires continue to employ all their 4,800 directly hired local staff. The remaining 800 are employed by third-party operators and the government has obtained promises from the concessionaires that they will hire any staff the third parties are unable to retain.
SJM meanwhile said it is considering acquiring the hotels housing Ponte 16 and Le Royal Arc, intending to convert them into directly-operated casinos in compliance with the revised gaming law.
This article was drafted by AI before being reviewed by an editor.
