As Macau seeks economic diversification, 11 satellite casinos to cease operations
By the end of the year, 11 satellite casinos in
Macau will cease operations, as the government seeks an economic diversification away from
gambling and into exhibitions, entertainment and technology.
Satellite casinos are small casinos operated by third parties but under concessionaires' licences. Analysts said the impact on concessionaires was 'broadly neutral', but some firms should see a more immediate increase in table yields.
SJM Holdings said it would shut down seven of its nine satellites this year and buy the two others, Ponte 16 and L'Arc Macau, before directly managing them.
Galaxy Entertainment Group said it would close the Waldo Casino 'due to commercial considerations', and Melco Resorts & Entertainment said it would shut down the Grand Dragon Casino along with three Mocha Club slot venues: the Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel.
On Monday, Tai Kin Ip, Macau's secretary for economy and finance, said there were around 5,600 local employees at the satellite casinos. He said 4,800 were employed by the concessionaires and 800 worked for the satellite casino operators.
In 2022, the Macau government amended its gaming laws before granting six new 10-year casino concessions. It gave satellite casinos three years to shift from a profit-sharing model to a structure where they are directly owned by licensees.
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