Satellites III - encerramento a partir de junho 25
The Macau Government Tourism Office (MGTO) plans to hold a food and cultural market in Zona Nova de Aterros do Porto Exterior (NAPE) in mid-August, aimed at promoting the transformation of an area that has expressed concern over the impact of the impending closure of its satellite casinos
Cheng Wai Tong, Deputy Director of the MGTO, revealed the latest developments during a media interview on Monday evening, stating that the MGTO plans to hold a food and cultural and creative community market in the NAPE area on 15 August.
“The market will last for 10 days and aims to showcase the unique characteristics of the NAPE area and attract tourists,” he said.
A Casa dos Trabalhadores da Indústria do Jogo admite estar preocupada com o destino dos trabalhadores dos casinos-satélite. A instituição é ligada à Federação das Associações dos Operários de Macau, cujos quatro deputados votaram a favor da lei que força o encerramento dos casinos-satélite
Gaming concessionaire SJM Resorts has announced on Monday that Casino Grandview will cease operations on 30 July, with all gaming tables to be redeployed to other gambling venues under SJM’s licence.
Customers holding chips, deposits, or cash rebates accumulated at Casino Grandview that remain unredeemed after its closure may visit the cage at Casino Casa Real, SJM stated in the same announcement, adding that the operator “will ensure that all customer entitlements are duly honoured”.
Located at Grandview Hotel, on Estrada Governador Albano de Oliveira in Taipa, Casino Grandview is one of seven satellite casinos operating under SJM’s concession. It is slated to close its doors by 31 December, following a June announcement regarding the termination of operations at nine of the city’s 11 satellite casinos, as the three-year grace period stipulated in the gaming law comes to an end.
Economia pagará “preço desproporcional” com o fecho dos casinos-satélite
Desemprego, impacto nas receitas do jogo e nas pequenas e médias empresas, sector bancário afectado – estas podem ser consequências do encerramento dos casinos-satélite, na perspectiva de António Félix Pontes. O economista anteviu ao Jornal TRIBUNA DE MACAU que “os efeitos económicos adversos, a curto prazo, serão fundamentalmente, a destruição significativa de milhares de postos de trabalho, a redução da capacidade operacional e da oferta das empresas ligadas ao jogo”. Em suma, admite que a economia, a curto prazo, “vai pagar um preço demasiado alto e desproporcional para se alcançarem objectivos de um maior controlo regulatório e de transformação do modelo de negócio do jogo em Macau”
VÍTOR REBELO
Os reflexos do fecho, até ao final do ano, dos 11 casinos-satélite do território podem vir a afectar diversos sectores da economia local, segundo a opinião de António Félix Pontes. O economista disse ao Jornal TRIBUNA DE MACAU que, em termos gerais, o encerramento “acarreta custos materiais e imediatos”, com especial destaque no emprego, nas receitas do jogo e no sector das pequenas e médias empresas, “cuja vida tem vindo a deteriorar-se desde os tempos da pandemia, sem que se descortinem acções de apoio efectivo e realístico às mesmas”.
“A curto prazo, a economia vai pagar um preço demasiado alto e desproporcional para se alcançarem objectivos de um maior controlo regulatório e de transformação do modelo de negócio do jogo em Macau, o que, sejamos pragmáticos, só é possível de concretizar a médio e longo prazos”, defende.
A questão dos trabalhadores dos casinos-satélite é outra das preocupações. “Na realidade, desses 11 casinos-satélites, dois já foram integrados no casino-principal de uma das concessionárias, presumindo-se que todos os seus trabalhadores transitaram para este último”. No entanto, diz, “tal pode não significar que vá ser a regra geral, nem está imposta por lei, desconhecendo-se ‘o porquê’ para tal omissão”.
Sobre os restantes nove casinos-satélites, cuja força laboral deve rondar mais de 5.000 trabalhadores, salienta que “a situação poderá estar cheia de incertezas”, admitindo mesmo que “caso a decisão dessas entidades seja diferente da que ocorreu com a integração supramencionada, o caminho dos trabalhadores envolvidos será, quase que inevitavelmente, o do desemprego”.
A problemática da força laboral poderá não se esgotar nos trabalhadores desses casinos, como indica Félix Pontes, “na medida em que a mesma constitui apenas a mão-de-obra directa. Importa recordar que, “na órbita dos casinos-satélites, gravitam imensas empresas de pequena e média dimensão dentro e fora dos espaços onde estão a operar os casinos-satélites – empresas de limpeza, segurança, lojas diversas, cabeleireiros, hotelaria, restaurantes… -, cujos trabalhadores representam a mão-de-obra indirecta, que convém não esquecer”, adverte.
Considerando que as famílias também serão afectadas, o economista fala em “mistério”, uma vez que “ainda ninguém ousou apresentar qualquer solução exequível” para arranjar emprego a milhares de trabalhadores, de diversos sectores, desde os empregados de limpeza aos que servem nos restaurantes”.
António Félix Pontes observa que os “efeitos negativos” não se limitam ao mercado laboral. “As empresas que dependem da actividade dos casinos-satélites assumiram compromissos financeiros de diversa ordem que terão de honrar – como empréstimos bancários, pagamento dos salários e rendas dos locais onde funcionam -, mas, como é evidente, só estarão em condições de o fazer se tiverem receitas”, considera. Por conseguinte, admite que o futuro para essas empresas é “muito sombrio”.
Sublinha, em resumo, que os efeitos económicos adversos, a curto prazo, serão, fundamentalmente, “a destruição significativa de milhares de postos de trabalho, a redução da capacidade operacional e da oferta das empresas ligadas ao jogo, a perda de certos nichos de mercado (jogadores VIP), as dificuldades acrescidas para as empresas locais que estão muito dependentes da actividade dos casinos-satélites, o impacto económico negativo nas zonas onde estes operam e a redução nas receitas das concessionárias e do Governo (imposto sobre o jogo)”.
No que diz respeito aos reflexos no sector bancário, o economista considera ser “natural” que o “efeito dominó” se faça sentir. Com o desemprego, os trabalhadores “ficarão coarctados do seu salário” e os empresários afectados “deixarão de auferir receitas devido ao fecho das suas empresas, pelo que terão muitas dificuldades em amortizar os empréstimos”.
Nesse cenário, diz, “os bancos terão, obrigatoriamente, de constituir provisões para o crédito malparado, cujo nível actual já é preocupante, em particular, para determinadas instituições financeiras”.
Período transição foi “curto”
Analisando as razões que estiveram na base da decisão do encerramento dos casinos-satélite, relembra a base legal que decorre da lei que altera o ‘Regime jurídico da exploração de jogos de fortuna ou azar em casino’, em que se estabelece um período de transição de três anos para os casinos-satélites, o qual termina no dia 31 de Dezembro de 2025. “Esse período foi curto, uma vez que se deveria ter considerado uma certa flexibilidade, atendendo ao comportamento da economia local, que cresce, mas pouco e a diversos ritmos, consoante os sectores económicos”, afirmou.
Quanto a motivos de outra ordem, de realização a longo prazo, crê que radicam em aspectos como o “reforço da supervisão e um controlo acrescido do sector do jogo, por imposição do Governo Central, e a concentração da actividade por operadores de maior grandeza”.
Enumera igualmente a “diminuição dos riscos financeiros relacionados com a actividade dos casinos-satélites e o seu possível contágio ao sector financeiro e na promoção de um modelo de negócio mais orientado para o turismo de massas e lazer das famílias, contribuindo, desta forma, para a tão almejada diversificação económica da RAEM”.
Na sua opinião, deveria ter havido uma “maior ponderação e bom senso” no sentido de se ter procurado “um equilíbrio entre os custos sociais, a curto prazo, que a medida implica com a finalidade pretendida, a médio e longo prazos”.
Presumindo que previamente à tomada de decisão “deve ter sido feito um estudo custo-benefício, ou por outras palavras, sobre as vantagens e inconvenientes dessa medida, nas vertentes económica, financeira e social (emprego)”, Félix Pontes entende que se isso aconteceu, “em nome da transparência”, o mesmo deveria ser do conhecimento público, “até para evitar eventuais incorrecções na análise”.
Concluindo, fala do desafio que as concessionárias irão enfrentar no futuro, frisando que a principal preocupação será de recuperar e, “eventualmente, superar”, as receitas que os seus casinos-satélites lhes têm vindo a proporcionar. “Terão, ou não, capacidade para isso?”, questiona, acrescentando: “Terão de fazer muito ‘trabalho de casa’ para resolver esse problema”.
https://jtm.com.mo/local/economia-pagara-preco-desproporcional-fecho-dos-casinos-satelite/
OPINION – The rise and fall of satellite casinos
Jorge Godinho
Associate Professor, ISMAT, Portugal and
Visiting Professor, University of Macau, China
Sublicensing or subcontracting practices of dubious legality in the gaming industry are by no means new. However, in the old days of the Fantan monopoly era (1849–1961), such practices were sometimes tolerated or even explicitly legal. For instance, clause 14 of the 1858 concession stated that “In addition to the successful bidder and the persons authorised by him, no one else will be allowed to operate a Fantan game (…)” (italics added). The monopoly holder could lawfully negotiate with other operators. Similar language is found in other concessions of that period, namely in the 1882 and 1892 clauses. There was logic to this: the Government had a hands-off policy and preferred to speak with just a single party, the monopoly holder, who often was the representative of various business partners and could engage second-tier associates. But times have changed.
The modern concession system started in 1962. The Lisboa integrated resort opened in 1970 and STDM began operating at cruise speed. From 1975 there were four casinos: Lisboa, Macau Palace, Jai Alai (which replaced the Estoril) and Kam Pek. A fifth was added in 1984 with the opening of the Oriental.
Macau grew quite rapidly in the 1980s and 1990s. The city expanded and tourism boomed. Many hotels were built, especially in the outer harbour area, and a way was found to open a casino on the premises: profit-sharing deals with STDM.
What is crooked can never be straightened. The 2022 decision to terminate these practices has restored the concession system to where it should be. It may have serious economic consequences, but let’s not disregard that everyone enjoyed at least a decade and a half, or much more, to make a lot of money in profits and taxes
When the 1962–2002 STDM concession ended there were already 11 casinos. New ones opened in the Kingsway hotel, the Holiday Inn, the Hyatt Regency (with betting in USD), the New Century hotel (later renamed Beijing Imperial Palace), the Macau Landmark, and the Marina Infante (the first in the Cotai). With the STDM concession expiry, its 11 casinos made a smooth transition to SJM in April 2002 and continued to operate. While it may be difficult to research each specific case, clearly a number of these casinos were a result of “business partnerships” for revenue sharing or what we today call “satellite casinos”.
The practice of allowing or tolerating such “partnerships” continued in the Macau SAR, during the first years of the 2002–2022 concession cycle. Many more satellite casinos appeared, such as at the Golden Dragon, Emperor, Casa Real, Fortuna, Le Royal Arc or Ponte 16 hotels. Galaxy and Melco also had satellite casinos.
By 2007 Macau had 28 casinos — a large number. The practice of subcontracting and/or sublicensing had climbed to notable heights. The regular opening of new casinos entrusted to “business partners” not holding a sub/concession, not selected by public tender, and whose suitability was possibly not formally investigated, was creating a crisis for the integrity of the concession system. The door to the concession “planet” was closed, but the “satellite” window was open.
However, the context had changed: there was no longer a monopoly after the reforms of 2001. In a monopoly the risks and impacts can be assessed and managed by a single operator. Everyone is happy: there are more profits, jobs and taxes. On the contrary, in a competitive environment, an unforeseen increase in the market, creating additional competition for formally authorised operators, may pose financial and legal questions. Investors were pouring millions of dollars into a jurisdiction that had granted three concessions that soon after became effectively six, and new casinos were popping up all the time, creating even more competition.
And so, in 2007, the year in which the Venetian opened and the Cotai started to take shape, the tolerance of “satellite casino” projects ended. It became public that no more would be allowed. The final blow was delivered 15 years later, in 2022: prohibit profit sharing, require ownership of the property by the concessionaire, and bring this chapter to a close.
In 2021 the number of casinos reached 42, the all-time peak. In 2022 it crashed to 30 due to the legal reforms (helped by covid). And this time there was no smooth transition for “satellite casinos” to the new 2023–2032 concession cycle. Still, a grace period of three years was given, which expires at the end of 2025, and that will be it.
Tolerance of what can be vaguely described as sublicensing or subcontracting practices (a field difficult to research due to secrecy and lack of access to primary sources) clearly runs against and weakens the formal existence of a closed regulatory system, such as monopoly or oligopoly concessions.
The 2022 legal reform offers two options. A property may be bought by an existing concessionaire and therefore the casino inside it may remain open; this will happen in two cases, according to recent news (L’Arc, Ponte 16). The other option is for the “satellite” entity to become a management company, but without overt or implied profit sharing (or any other “creative” solution), which is now explicitly illegal; it seems that this route was not deemed viable by any “satellite” or concessionaire.
Otherwise, the “satellites”, which are reported to have 480 tables and 270 machines in total, must close by the end of 2025. This is the likely fate of nine casinos, which means that in just five years (2021 to 2026), the number of Macau casinos will be cut in half, from 42 to 21 — certainly a remarkable development.
This may have painful economic effects. Jobs will be lost. Small businesses adjacent to satellite casinos will suffer. Not what the Macau economy needed.
No gaming operator is offering any ‘voluntary resignation programme’ to let go of their employees working at satellite casinos, the labour authorities have stressed.
The Labour Affairs Bureau recently issued a statement saying they are ‘highly concerned’ about these employees’ rights and protections.
They said that they had already contacted the three gaming concessionaires for confirmation.
‘If a company offers a resignation or retirement scheme for employees who intend to leave, the employees ought to make an application voluntarily for the company to review, and compensation conditions must not be lower than statutory stipulations,’ the statement says.
IAG balanço
https://asgam.com/2025/06/27/of-fortune-or-misfortune/
jul25
Where will low-stakes gamblers go when Macao’s satellite casinos close?
- Some observers say low-tier gamblers could be priced out of the market entirely, while mid-tier players would likely head for core Cotai Strip casinos
- Mid-tier satellite players could be directed to core casinos’ electronic gaming areas, one expert says, which typically have lower minimum bets than dealer tables
- https://macaonews.org/news/business/macau-satellite-casinos-customers/
- Some observers say low-tier gamblers could be priced out of the market entirely, while mid-tier players would likely head for core Cotai Strip casinos
- Mid-tier satellite players could be directed to core casinos’ electronic gaming areas, one expert says, which typically have lower minimum bets than dealer tables
- https://macaonews.org/news/business/macau-satellite-casinos-customers/
jul154Macau legend
Macau hotel and satellite casino services firm Macau Legend Development Ltd has proposed a share consolidation and enlargement of its board lot size for the trading of its stock on the Hong Kong bourse.
The aim is to increase its share price and to facilitate trading activities, according to a filing Macau Legend lodged on Friday after Hong Kong Stock Exchange trading hours.
Macau Legend has mooted that every 10 existing shares of the issued and unissued share capital of the firm be consolidated into a single share.
The company also said that “due to the financial needs of the group,” it was “considering fund-raising exercises… including but not limited to, rights issue after the share consolidation and the change in board lot size” became effective. It added however, it “does not have any concrete plan” for such fund raising at present.
As of Friday, the authorised share capital of Macau Legend was HKD1 billion (US$127.4 million) divided into 10 billion shares each of HKD0.1 par value. There were, as of that trading day, 6,201,187,120 existing shares in issue, that were either fully paid, or credited as fully paid.
Macau Legend currently operates the waterfront gaming and leisure complex, Macau Fisherman’s Wharf (pictured in file photo), on Macau peninsula.
https://www.ggrasia.com/satellite-op-macau-legend-plans-share-consolidation-mulls-fundraising-via-rights-issue?utm_source=rss&utm_medium=rss&utm_campaign=satellite-op-macau-legend-plans-share-consolidation-mulls-fundraising-via-rights-issue
jun25 OS JOGADORES VAO PARA ONDE?
Seguindo a lei de Lavoisier, tanto na química, como na física ou nos jogos de casino, nada se perde e tudo se transforma. É o que consideram analistas e profissionais do sector, ouvidos pelo portal GGR Asia.
Com o encerramento dos casinos-satélites, o que acontecerá à clientela fiel habituada a jogar nestes espaços mais tradicionais, com apostas mínimas mais acessíveis e com bebidas e aperitivos grátis (algo que os casinos das concessionárias começaram a implementar há pouco tempo)?
Em primeira análise, os casinos que permanecerão abertos na península são os principais candidatos a receber estes jogadores, abrindo um novo segmento de mercado que no passado estava arredado dos maiores casinos do território.
“O mercado que os casinos-satélite serve parece ser bastante diferente do dos grandes resorts integrados. Snacks e as bebidas grátis têm sido o pilar dos casinos-satélite até que os resorts integrados entraram finalmente em acção no ano passado. Além disso, o mercado dos casinos-satélite é local e de Hong Kong e recorrente, uma clientela regular”, indica o analista da IGamiX Management and Consulting, Ben Lee, citado pelo GGR Asia.
Profundidade da carteira
O portal de notícias de jogo cita também um responsável de uma das concessionárias, que não se identifica, que entende que muitos dos jogadores dos casinos-satélite podem ficar excluídos do mercado devido aos limites mínimos de apostas serem mais elevados nos casinos operados directamente pelas concessionárias. Porém, em vez das mesas tradicionais de bacarat com dealers, estes jogadores podem optar pelas áreas de máquinas de jogo.
Esta visão de jogadores que tipicamente apostam menos é desmistificada por um executivo de um casino-satélite, que também não se identificou.
“A clientela dos casinos-satélite não é inteiramente de baixo nível. Há também alguns jogadores de nível médio que poderiam adaptar-se às ofertas de empresas como a MGM Macau e a Wynn Macau, que não servem apenas o segmento de topo de gama”, indicou. O responsável acrescentou que os casinos da MGM e Wynn na península estão bem colocados para captar parte da clientela dos casinos-satélite no próximo ano.
Ben Lee acrescenta que para captar este segmento “perdido”, os casinos só têm de oferecer o mesmo tipo de serviço providenciado há anos pelos casinos-satélite: bebidas e aperitivos locais grátis e limites-mínimos de apostas mais flexíveis. Recorde-se que nove dos 11 casinos-satélite que vão encerrar no fim deste ano estão localizados no NAPE e ZAPE.
https://hojemacau.com.mo/2025/07/01/fechos-de-casinos-satelite-podem-levar-novos-jogadores-as-concessionarias/
jun25
instalações ou bonecos de grande dimensãoA Direcção dos Serviços de Turismo (DST) sugeriu, numa reunião com representantes do sector hoteleiro do ZAPE, que esta zona pode vir a integrar mais projectos e iniciativas de propriedade intelectual, como instalações ou bonecos de grande dimensão, para atrair turistas.
Esta reunião decorreu na sexta-feira e teve como contexto a discussão de medidas para lidar com o fecho dos casinos-satélite até ao final do ano. Segundo uma nota, a DST quer também promover “a extensão dos benefícios económicos dos concertos, o aproveitamento adequado de espaços para a realização de actividades e a optimização do ambiente da zona, entre outras”, tendo sido sugerida a exploração de “novas fontes de visitantes”.
Os empresários foram ainda aconselhados a lançar “produtos turísticos complementares ou promoções de alojamento”. Os representantes dos sectores hoteleiro e turístico “concordaram, de um modo geral, com as medidas preliminares definidas pelo Governo”, descreve a mesma nota. O ZAPE conta com mais de 20 hotéis de diferentes tipos e categorias.
https://hojemacau.com.mo/2025/06/23/casinos-satelite-sugeridos-novos-projectos-para-atrair-turistas-ao-zape/
jun25
One in four pawnshops at risk of collapse as satellite casinos shut down: Industry rep
jun25 (Paradise Entertainment )
Paradise Entertainment will pivot its business strategy to concentrate on gaming equipment operations following the mandated closure of Macau’s satellite casinos by year-end, company chairman and managing director Jay Chun told AGB.
The Hong Kong-listed company, which operates Casino Kam Pek Paradise under SJM Holdings’ gaming licence, is set to face a significant revenue impact, as casino operations account for more than half of its total income. The satellite casino is one of 11 such venues scheduled to cease operations by December 31st under the current gaming law.
According to Paradise Entertainment’s latest financial results, the company recorded HK$718.3 million ($91.6 million) in casino revenue during 2024, representing approximately 66 percent of its total revenue of HK$1.085 billion ($138.4 million). In terms of adjusted EBITDA, casino operations generated HK$310.4 million ($39.6 million) compared to HK$187.8 million ($23.9 million) from the gaming equipment business.
“The casino revenue occupies half of the company’s revenue,” Chun told AGB, explaining that the shutdown of the Kam Pek Paradise casino will sharply reduce the company’s income. According to checks by AGB, the closure will result in adjusted EBITDA losing 68.5 percent of the company’s current earnings from satellite casino operations
Workforce implications and job transfers
The transition will significantly impact Paradise Entertainment’s workforce. Approximately 400 employees from Kam Pek Paradise will be transferred to SJM, the primary gaming licence holder, while around 300 additional staff members, including cleaning personnel, face uncertainty.
Chun estimates that roughly half of these 300 positions—classified as self-recruited employees—may be eliminated, potentially resulting in 150 job losses. However, a final decision will not be made until the end of the year, as there is still half a year remaining to ensure a smooth transition process.
As mentioned by Macau authorities, the broader satellite casino closure affects approximately 5,600 workers across all 11 venues. According to Secretary for Economy and Finance Tai Kin Ip, job protections are in place for local employees. Of the total workforce, 4,800 were hired directly by the three gaming companies involved, with the remaining 800 employed by satellite operators themselves. An additional 400 non-local employees are also affected.
SJM has committed to reassigning affected local employees, whether hired directly or through third parties, whilst Melco has stated that its employees would be transferred to other properties within Macau.
Enhanced focus on gaming equipment business
Speaking about the strategic shift, Chun indicated that the gaming equipment business would be “enhanced,” though he did not specify particular measures for the expansion.
The company has already taken steps to strengthen this segment, with subsidiary LT Game Ltd opening a local assembly facility in April. The 20,000 square foot facility, located in an industrial building in northern Macau peninsula, covers 1,858 square metres and enables local production of gaming equipment.
Meanwhile, the company has established a Philippines office for global expansion in 2024. As per a previous interview with AGB in December 2023, the company’s focus is on the Philippines market. The Philippines already holds the title of the largest EGM market in Asia, offering great flexibility with numerous casinos and a variety of gaming types. Chun believes that the slot machine count in the Philippines will “double” in the foreseeable future.
Stock drops over 55%
The announcement of the satellite casino closure had a significant impact on Paradise Entertainment’s stock performance. Following the 9th June government announcement, the company’s shares fell from HK$1.83 at opening to a low of HK$0.65 on 10th June. As of 26th June, after market close, the company’s shares stood at HK$0.82, falling over 55 percent since the casino closure announcement.
In response to the stock decline, Jay Chun purchased additional shares worth approximately HK$323,880 ($41,263) across two transactions, increasing his stake from 59.96 percent to 60 percent of the company.
https://agbrief.com/intel/deep-dive/30/06/2025/paradise-entertainment-to-refocus-on-gaming-equipment-as-satellite-casino-closure-looms-jay-chun/?utm_source=Asia%20Gaming%20Brief&utm_campaign=af0bb76eaf-AGB%3A%20%2302172%20Monday%2C%2030th%20June%2C%202025&utm_medium=email&utm_term=0_51950b5d21-af0bb76eaf-%5BLIST_EMAIL_ID%5D&ct=t%28AGB%3A%20%2302172%20Monday%2C%2030th%20June%2C%202025%29&goal=0_51950b5d21-af0bb76eaf-%5BLIST_EMAIL_ID%5D&mc_cid=af0bb76eaf&mc_eid=31e20475e6
jun215
Soon-to-close satellite casinos remain packed, offer some of the cheapest baccarat bets in downtown Macau
Macau’s satellite casino closures pose mixed outlook for SJM and local economy: Researcher
The impending closure of 11 satellite casinos in Macau is poised to reshape the local gaming landscape, delivering both strategic opportunities and operational challenges, especially for SJM Holdings, according to an academic at the University of Macau.
“The impact on the gaming operator operations will be focused on SJM,” said Ricardo Siu, Associate Professor in Business Economics at UM’s Faculty of Business Administration. “Nine of the 11 satellite casinos are operated under its license”, he noted, with the remaining two tied to Galaxy Entertainment Group and Melco Resorts & Entertainment.
Siu explained that the shift could ultimately boost profitability for SJM. “On average, profit margin (net GGR) of a gaming device like a gaming table to a gaming license holder is much higher if the device is operated by itself instead of by a satellite casino”, he said.
“As competition in the mass market is getting higher in the foreseeable future, reallocation of the gaming tables by SJM from the satellite casinos back to its own properties can be helpful to improve its overall business performance.”
Still, the transition will not come without cost. “The labor cost will also increase under its promise or responsibility to retain the gaming and some related staff from the satellite casinos,” Siu added.
Worker transition and economic fallout
Currently, some 5,600 local workers are employed at satellite casino operations—venues owned by third-party investors but operating under official gaming concessions. Of these, around 4,800 work under the umbrellas of Galaxy, Melco, and SJM, while the remaining 800 are employed directly by the satellite operators themselves.
The three concessionaires involved in the satellite arrangements have pledged to reassign all affected employees to new positions within their core properties, ensuring workforce stability as satellite venues shutter.
At least nine of the 11 satellite casinos are expected to cease operations by December 31st 2025, coinciding with the end of a three-year grace period granted under transitional agreements between the operators and their licensed partners.
Under Macau’s revised gaming law and the new 10-year concessions that took effect in 2023, satellite casino operators must transition to a “management company” model.
The framework requires that all gaming operations fall under the direct control of one of the city’s six licensed concessionaires, effectively ending the decades-old satellite model in its current form.
Macau Chief Executive Sam Hou Fai has downplayed the closures’ macroeconomic effects.
In a press conference last Sunday, he emphasized that satellite casinos contributed just over MOP10 billion ($1.2 billion) in gross gaming revenue (GGR) out of a full-year industry total exceeding MOP200 billion ($24.7 billion), suggesting a limited impact on the city’s gross domestic product.
Nevertheless, authorities are preparing support measures for neighborhoods hit hardest by the closures.
“It is reasonable to foresee that consumer flow and absolute value of spending in those areas will slow down”, Siu said of the NAPE and ZAPE districts, where many satellite casinos are located. “Thus, business vitality, turnover and employment opportunity in those areas will be affected negatively.”
The government, he added, along with local business groups, is exploring revitalization strategies such as transforming affected districts into pedestrian-friendly commercial zones and promoting new tourism incentives. But Siu remains cautious: “The ultimate effect of these efforts may still be subject to uncertainty.”
The Macau Economic Association (MEA) has released its latest economic climate index, revealing a stable yet uneven recovery, with key sectors showing resilience while other indicators point to underlying vulnerabilities.
Macau authorities have announced new plans to help local workers as the transition period for satellite casinos approaches.
All the three casino companies, SJM Holdings, Melco Resorts & Entertainment, and Galaxy Entertainment Group, must take care of the workers they sent to satellite operations, according to a Tuesday statement from the Labour Affairs Bureau.
The private owners of these businesses will also need to help their own local employees find new work, the bureau added.
To ensure a smooth transition, the authorities have dispatched 62 inspectors, with 38 explanation sessions on workers’ rights, reaching nearly 70 per cent of all affected employees.
https://www.macaubusiness.com/govt-says-operators-cooperate-to-ensure-local-employment-in-satellite-casino-shift/
Three Macau concessionaires hold job fairs for displaced satellite casino employees
The closure of Macau’s remaining satellite casinos is unlikely to make a meaningful dent in the city’s overall economy or destabilize the accounts of major operators, according to lawyer and gaming law expert António Lobo Vilela, who argues the changes reflect a strategic shift rather than an economic blow.
The city’s once-sprawling network of satellite casinos—privately owned venues operating under the licenses of the six main gaming concessionaires—has been gradually winding down since regulatory changes took effect in 2022.
At least nine of the city’s 11 satellite casinos are expected to cease operations by 31 December, marking the end of the three-year grace period granted for agreements between gaming venue operators and the concessionaires under which they operated.
https://www.macaubusiness.com/limited-impact-from-satellite-casino-closures-in-macau-legal-expert-1/
Gov’t to launch support measures for businesses near closing satellite casinos: CE
Chief Executive Sam Hou Fai has announced that the Macau Government plans to introduce support measures to assist communities and businesses located near satellite casinos facing closure—particularly in the ZAPE and NAPE areas of the Macau peninsula, where several of these venues are set to cease operations by the end of the year.
The Chief Executive stated that the Economic and Technological Development Bureau (DSEDT) will closely and continuously monitor the operational status of commercial establishments in the vicinity of satellite casinos.
Satellite casino closures, acquisitions won’t impact SJM’s credit rating, says Fitch
- The concessionaire faces a shake up as Macao’s satellite casinos are forced to wind down operations, but Fitch Ratings expects the impact will be ‘manageable’
- SJM hopes to convert two of the nine satellites it currently licenses into casinos it owns and operates, subject to government approval
- https://macaonews.org/news/business/sjm-satellite-casino-closures-fitch/
O académico Davis Fong considerou que o encerramento de 11 casinos-satélite se deve ao funcionamento do mercado e ao facto de as concessionárias e as empresas que exploram os casinos-satélite não terem chegado a acordo sobre o pagamento pela exploração dos casinos. A posição do académico, e ex-deputado nomeado pelo Chefe do Executivo, foi tomada em declarações ao Jornal Ou Mun.
Na óptica de Davis Fong, o fim destes espaços deveram-se principalmente ao desencontro das posições entre os operadores e as concessionárias do jogo, dado que com as alterações à lei do jogo, as empresas que exploram os casinos-satélite deixaram de ser pagas de acordo com as receitas dos casinos, e apenas podem ser pagas através da chamada retribuição do contrato de exploração do jogo, ou seja, um pagamento mensal fixo.
O director do Instituto de Estudos sobre a Indústria do Jogo da Universidade de Macau desvalorizou ainda o impacto do encerramento destes casinos na economia local, ao indicar que actualmente decorre um período de transição para os casinos-satélite, e que nos últimos dois anos e meio era conhecida a possibilidade do encerramento. Por este motivo, indicou Davis Fong, muitos restaurantes mudaram de localização do ZAPE para o NAPE, para se prepararem para o novo cenário, sem estes casinos.
Embora ser conhecido como especialista na área do jogo, Davis Fong não se coibiu de considerar que mesmo sem casinos o ZAPE continua a ser uma área com valor comercial, e que os comerciantes daquela zona devem pensar em novas forma de atrair outros clientes. Fong deixou como sugestão o desenvolvimento do comércio nocturno.
O ex-deputado também opinou que os funcionários dos casinos-satélite ligados a áreas que não-jogo vão enfrentar dificuldades em obter um novo emprego, pelo que defendeu que as concessionárias devem arranjar alternativas de emprego para os futuros desempregados.
https://hojemacau.com.mo/2025/06/11/casinos-satelite-davis-fong-diz-que-fechos-se-devem-ao-mercado/
Jay Chun, chairman and managing director of Hong Kong-listed Paradise Entertainment Ltd, has spent about HKD323,880 (US$41,263) with two transactions in the space of three days, to acquire an aggregate of 356,000 shares in the company. The move comes amid a plunge in the firm’s stock value following the June 9 news that all satellite gaming operations in Macau will close by year-end.
As well as making gaming equiment, Paradise Entertainment provides casino management services for the satellite gaming venue Casino Kam Pek Paradise in downtown Macau.
The company had a voluntary halt in the trading of its shares at 2.27pm on June 9, prior to a Macau government annoucement about the fate of Macau’s 11 satellites. The firm’s trading restarted at 9am on June 10.
That day, Mr Chun (pictured in a file photo) made an initial move to increase his long position in Paradise Entertainment. On June 12, he effected another purchase, so that the two exercises took him to 60.00 percent, from an original 59.96 percent, as per disclosure records of the Hong Kong bourse.
CE downplays impact of satellite casino closures on GDP
The Macau government has “underestimated” the economic impact from the closure by year-end of Macau’s 11 satellite casinos, says the Macau General Association of Real Estate.
That is in terms of the risk attached to outstanding loans raised by satellite-property investors, and the dependence of nearby small and medum-sized enterprises (SMEs) on foot traffic from those casinos.
The association estimates “over MOP50 billion” (US$6.19 billion) in loans are directly tied to satellite properties and their investors, with up to an additional “MOP20 billion” in loans tied to satellite-hinterland shops and other service providers.
That is according to comments by Ip Kin Wa, the association’s director, as cited on Thursday by Chinese-language outlet Macao Daily News. The president of the Macau General Association of Real Estate, Chong Sio Kin, became in 2018 majority investor in the downtown-Macau hotel containing Casino Landmark, one of the satellite properties now to face closure.
https://www.ggrasia.com/macau-govt-underestimates-economic-pain-of-satellite-casino-closures-real-estate-association
Lawmakers demand job guarantees for workers affected by casino closures
https://www.macaubusiness.com/lawmakers-demand-job-guarantees-for-workers-affected-by-casino-closures/NAPE shop values could plunge 40pct amid satellite casino closures: JLL
The valuation of shops in Macau’s NAPE district could fall by 40 percent following the closure of all satellite casinos by the end of this year, property consultancy Jones Lang LaSalle (JLL) said.
In an interview with Macao Daily News published Wednesday, Mark Wong, director of value and risk advisory at JLL in Macau, said the closure of satellite casinos is set to further erode the commercial vitality of the NAPE area, where many of these venues are based.
“The market outlook remains pessimistic, and the impact on shop valuations is expected to become evident by the end of this year or early next,” Wong was quoted as saying.
His remarks follow respective announcements on Monday by the Macau government and gaming concessionaires confirming that all 11 remaining satellite casinos will cease operations once a three-year grace period ends in late 2025.
Under the city’s revamped gaming regulatory framework and new 10-year gaming concessions beginning in 2023, satellite casino firms were given until 2025 to transition to a “management company” model.
https://www.macaubusiness.com/nape-shop-values-could-plunge-40pct-amid-satellite-casino-closures-jll/
SJM to be disproportionately impacted by satellite casino closures: Brokerages
jun25
Satellite casinos in Macao: what their closure means for the future
- The winding up of Macao’s satellite casinos marks a new chapter for the local casino industry, with thousands of workers affected
- Shifting resources from these third-party casinos to the Cotai resorts may increase yield, analysts suggest, but that would take time to materialise
The impending closure of 11 satellite casinos and three slot machine halls in Macau has alarmed local businesses, with the District Development Promotion Association warning of significant property depreciation, while the Industry and Commerce Federation urged small- and medium-sized enterprises to unite and collaborate with the government to revitalize the local economy.
Confronting the reality of the satellite casino closures, Simon Sio, president of the District Development Promotion Association, anticipates a substantial short-term impact.
He highlights two key effects: first, the properties associated with those venues are likely to experience a significant decline in valuation due to the loss of income support; second, property owners nearby who invested based on the presence of the satellite casinos will also be adversely affected.
According to Sio, satellite venue operators and property owners are increasingly at risk of negative equity, particularly when their debt ratios are high.
Bank loans typically require a 30% down payment; for instance, when purchasing a property valued at HKD1 million, the remaining HKD700,000 must be financed through a loan.
https://macaudailytimes.com.mo/closure-of-satellite-casinos-alarms-local-businesses.html
Small businesses located near some of Macau’s satellite casinos have told Inside Asian Gaming that they expect the impending closure of those casinos will have a negative impact on their business.
As reported by IAG, the three Macau concessionaires that operate the 11 existing satellite casinos announced Monday that they will cease satellite operations before the end of this year, although SJM will look to acquire and convert two of those – Ponte 16 and L’Arc – into self-owned casinos.
Among the casinos closing down are Landmark, Fortuna and Kam Pek Paradise which are located in the Rua de Pequim (Beijing Street) area of Macau’s Zona Nova De Aterros Do Porto. Dozens of small businesses are closely tied to these satellite casinos.
A pawnshop on Beijing Street told IAG that its business primarily relies on casino customers and it anticipates that the closure of the Landmark and Fortuna Casinos will have a significant impact on its operations.
“It depends on the situation. We will have to wait until next year to decide [whether to stay open],” the pawnshop operator said when asked about the casino closures. He will explore the possibility of relocating next year to the Cotai area.
https://asgam.com/2025/06/10/local-businesses-fear-end-of-macau-satellite-casino-operations-could-have-fatal-impact/Closure of satellite casinos makes SJM’s situation ‘much more complex,’ say analysts
Gaming concessionaire SJM licenses nine of Macao’s 11 satellite casinos slated to close by the end of the year, making Monday’s announcement “much more complex” for it than for other affected concessionaires, according to JP Morgan Securities (Asia Pacific).
The investment advisory, reported by GGR Asia, noted that satellite casinos accounted for 4 percent of SJM’s trailing 12 months earnings before interest, taxes, depreciation, and amortisation (EBITDA), while Galaxy Entertainment and Melco Resorts’ – which each licensed one satellite casino – relied on them for less than 2 percent of EBITDA.
More crucially, SJM faced having to “bring likely thousands of staff under [its] direct payroll” as the government has said that all current employees at the satellites must be retained, JP Morgan said in the memo yesterday.
https://macaonews.org/news/business/macau-satellite-casinos-sjm/
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Closure of satellite casinos is both a headache and an opportunity for embattled SJM
Four Hong Kong-listed operators of satellite casinos in Macau – each working under the licence of concessionaire SJM Holdings Ltd – reacted on Monday night to news that all such operations in the city will close by the end of this year. A common note was confirmation that each firm only earlier that day had received information on the decision by SJM Holdings of not renewing their respective service agreements.
Macau currently has 11 satellite casinos operating under the 10-year gaming concessions that began in January 2023. Nine of these 11 venues operate under SJM Holdings’ licence; one under Galaxy Entertainment Ltd’s permit; and one under Melco Resorts & Entertainment Ltd’s gaming rights.
https://www.ggrasia.com/operators-of-satellite-casinos-in-macau-say-only-informed-of-closures-by-partner-sjm-holdings-on-monday
Macau’s Secretary for Administration and Justice, André Cheong Weng Chon (pictured in a file photo), said on Monday that while it was a “commercial decision” for SJM Holdings Ltd as to whether the Macau casino company wanted to acquire “100 percent of the property rights” at two of its current nine satellite casinos, it would still be “upon our approval” for the firm to continue gaming there on a non-satellite basis.
The official was speaking at a Monday press briefing on what will happen once the three-year grace period for Macau satellite casinos expires at year-end.
The two Macau properties that SJM Resorts has flagged it will acquire, are Ponte 16, a casino hotel in the Inner Harbour district, and L’Arc Macau, in downtown Macau.
https://www.ggrasia.com/ponte-16-and-larc-will-still-need-macau-govt-nod-to-continue-gaming-as-sjm-core-properties-andre-cheong
jun25
The announced closure of Macau’s 11 satellite casinos by year-end was a “negative surprise”, and the transition will in likelihood be more complex for SJM Holdings Ltd than the other concessionaires that have satellite partners, said various brokerages.
The existing 11 satellites operate under the 10-year gaming concessions that began in January 2023. Nine of the venues are lined to SJM Holdings’ Macau licence; one to Galaxy Entertainment Ltd’s gaming permit; and one to Melco Resorts & Entertainment Ltd’s Macau rights.
All three affected concessionaires issued statements on Monday afternoon regarding the closure of their respective satellite casinos by year-end.
Only Ponte 16 and L’Arc Macau – satellites under SJM Holdings – are expected to continue operations beyond 2025. To that end, the Macau concessionaire announced plans to acquire the respective properties where those two casinos are located, meaning they would no longer be classified as “satellite operations”. No terms or binding agreements have been announced so far, and the move still requires approval from the Macau government.
JP Morgan Securities (Asia Pacific) Ltd said in a Tuesday memo that in its view the impact from the cessation of satellite operations would be “negligible” for Galaxy Entertainment and Melco Resorts.
https://www.ggrasia.com/macau-satellite-casino-closures-impact-negligible-for-melco-galaxy-ent-but-more-complex-for-sjm-analysts
jun25 concessionarios combinaram entre si a divulgação? O qie vai ser dos hoteis sem casinos?
Macau concessionaires confirm closure of all other satellite casinos by year’s end
All of Macau’s satellite casinos will cease operations at the end of the year, according to information made public Monday by the related concessionaires. However up to two – L’Arc and Ponte 16 – may continue as casinos after acquisitions by SJM Resorts S.A.
In a statement, SJM, which operates nine of the city’s 11 satellites, said it would cease the operations of its satellite casinos with all gaming tables and slot machines from affected satellite casinos to be reallocated to the company’s self-owned casinos.
Melco Resorts announced earlier in the day that it would shutter Grand Dragon Casino while Galaxy Entertainment Group today announced the closure of Waldo Casino by the end of this year “due to commercial considerations.”
SJM revealed it would “restructure” its satellite casino operations by looking to acquire the properties where Casino L’Arc Macau and Casino Ponte 16 are located, while it would not continue operations at Casino Casa Real, Casino Emperor Palace, Casino Fortuna, Casino Grandview, Casino Kam Pek Paradise, Casino Landmark, and Casino Legend Palace.
Negotiations over the potential acquisitions of Casino L’Arc Macau and Casino Ponte 16 have not yet commenced, it added, and no binding agreements have been reached. However, “regardless of the outcome of negotiations for the above potential acquisitions, all gaming tables and slot machines from affected satellite casinos will be reallocated to SJM Resorts’ self-owned casinos.”
This, SJM explained, followed “in-depth analysis and evaluation by the board, taking into consideration factors such as their alignment with SJM Resorts’ long-term objectives and the Group’s overall competitiveness, and the strategic locations of the satellite casinos.”
It is apparent that SJM intends to continue operating Casino L’Arc Macau and Casino Ponte 16 as self-owned casinos but that each would cease casino operations if the planned acquisitions cannot be completed.
SJM also addressed the issue of displaced staff, stating, “SJM Resorts is committed to safeguarding local employment in Macau. All Macau residents currently working at the satellite casinos scheduled for closure, regardless of whether they are directly employed by SJM Resorts or by its third-party partners, will be offered job opportunities within SJM Resorts’ portfolio of properties.
“Those who are already SJM Resorts’ employees will retain their employment and be reassigned to similar gaming-related roles at other casinos based on operational needs. Non-SJM Resorts’ staff who are local residents will also be invited to apply for suitable positions of the Group.”
https://asgam.com/2025/06/09/macau-concessionaires-confirm-all-11-satellite-casinos-will-close-by-years-end/
jun25
A “wide range of outcomes is possible” regarding the future of Macau’s satellite casinos, says a report from brokerage CLSA Ltd. The institution added that “maintaining commercial viability and low unemployment” would in likelihood be “two key considerations” when deciding the fate of these gaming venues.
Macau currently has 11 satellite casinos that continue to operate under the 10-year gaming concessions that started in January 2023. Nine of those 11 satellite casinos are under SJM Holdings Ltd’s licence; one is under Galaxy Entertainment Group Ltd’s permit; and one is under Melco Resorts & Entertainment Ltd’s gaming rights.
Under the city’s revamped gaming regulatory framework – coinciding with the current concessions of the six Macau operators – from 2026, the third-party investors in satellite casinos will only be permitted to earn a “management fee” via a “management company”.
https://www.ggrasia.com/clsa-sees-possible-upgrades-in-table-yields-for-some-macau-ops-from-likely-closure-of-loss-making-satellite-venues
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