Macau: The Government believes that the Closure of satellite casinos to have “no effective impact” on gaming revenue

“We believe that the decision regarding gaming operations and their development will not cause an effective impact on gaming revenues but will have a positive impact on the operation of gaming activities,” said Secretary for Administration and Justice, André Cheong, at a press conference.

Three of the six gaming concessionaires operating in Macau – SJM, Galaxy, and Melco – have informed the authorities that they will cease operations at the 11 existing satellite casinos by 31 December, Cheong noted.

These casinos, operating under the umbrella of the concessionaires, are managed by third-party companies. They are a legacy of the Portuguese administration, having existed prior to the liberalisation of Macau’s gaming industry in 2002.

Under the amended gaming law passed in 2022, the deadline for winding down operations of these satellite casinos was set for the end of 2025.

Operators now have the option to assume direct management of the venues, close them, or enter new management contracts – provided there is no revenue-sharing, as stipulated by the new legislation.

Of the satellite casinos still operating, nine are linked to SJM, one to Galaxy, and one to Melco, which also runs six Mocha Clubs – electronic gaming machine venues.

SJM is considering acquiring the hotels housing two satellite casinos – Ponte 16 and Casino Royal Arc – and intends to seek permission from the authorities to operate them directly, Cheong said.

Melco, he added, has announced the closure of the Grand Dragon casino and three Mocha Clubs, although it plans to operate three others “through the contracting of a management company”.

“This was a business decision made by the three concessionaires,” Cheong stated, adding that considerations such as the contribution of each satellite casino to the concessionaire’s gaming revenue may have influenced the decisions.

Regarding the approximately 5,600 local workers affected, the authorities are requiring operators to ensure continued employment, and will “closely monitor the situation”, according to the Secretary.

In addition to the workforce, businesses located near these venues – about 320 small and medium-sized enterprises, including pawnshops, jewellery stores, and tobacco and alcohol retailers – may also feel the impact of the closures.

However, 70 per cent of nearby businesses “will not be directly affected”, said Secretary for Economy and Finance, Tai Kin Ip.

As the world’s gaming capital, with revenues more than double those of Las Vegas, Macau remains the only place in China where casino gaming is legal.

The city is home to six gaming concessionaires – MGM, Galaxy, Venetian, Melco, Wynn, and SJM – all of which renewed their 10-year concession contracts in December 2023, with the new term beginning on 1 January 2024.

Casinos in Macau generated MOP 21.193 billion in May, compared to MOP 20.188 billion in the same month of 2024, according to figures released earlier this month by the Gaming Inspection and Coordination Bureau (DICJ).

This marks the highest monthly revenue since January 2020, when casinos took in MOP 22.1 billion.