MACAU BUSINESS
EXPANSION BACK TO 2005 LEVEL
Edmund Loi Hoi Ngan, vice president of the Macau Development Strategy Research Centre, acknowledges that satellite casinos have long played a role in the development of the city’s gaming industry and wider economy. In the early stages of gaming liberalisation in the 2000s, satellite casinos expanded gaming operations into various neighbourhoods across Macau, he said, helping to drive rapid growth in the industry’s overall scale to eventually surpass the Las Vegas Strip to become the largest gambling market in the world. Mr. Loi, who is also an associate professor at Macau Polytechnic University, added that satellite casinos supported surrounding small and medium-sized businesses from retail to dining and contributed to local employment by creating thousands of jobs.
According to local gaming studies, the number of satellite casinos surged in the early 2000s following the liberalisation of the industry. However, in 2008, then-Chief Executive Edmund Ho Hau Wah announced that the government would no longer approve new land-use applications for gaming purposes, aiming to control the industry’s expansion. This move effectively halted the proliferation of satellite casinos.
In 2013, Macau had 35 casinos, including 18 satellites. By 2021, the total number of casinos reached a historic high of 42, driven by the completion of self-managed integrated resorts by gaming concessionaires. Of these, 22 were satellite casinos. However, following the economic disruption caused by the Covid-19 pandemic and regulatory changes, the number of casinos fell to 30 by early 2025, with 11 satellites remaining. As of early 2026, only 20 casinos remain in operation - a level last seen in 2005 - and none are satellite venues.
NATIONAL SECURITY AND TIGHTLY CONTROLLED ENVIRONMENT Despite their positive contributions, Mr. Loi pointed out that structural flaws were inherent to the satellite casino model. While licensed concessionaires bore ultimate legal responsibility for operations, the day-to-day management was often controlled by third-party venue owners, leading to a disconnect between accountability and operational authority. This mismatch resulted in inconsistent standards and weak oversight, especially at a time of increasing global scrutiny in areas such as anti-money laundering, he added. The limited infrastructure and scale of satellite casinos also made them ill-suited to the current direction of Macau’s gaming industry, which increasingly prioritises non-gaming elements such as MICE (meetings, incentives, conferences, and exhibitions), retail, and entertainment. “[The closure of satellite casinos] addresses the root issue of ‘unclear responsibilities’ by consolidating all legal obligations and operational practices under a single entity - the gaming concessionaire,” Mr. Loi indicated.
“[This] paves the way for a healthier industry ecosystem, strengthens the foundation for long-term development, and ensures alignment with Macau’s broader goal of becoming a ‘World Centre of Tourism and Leisure’, as well as with national priorities around economic security and financial stability,” he added.
A similar viewpoint is echoed by Jorge Godinho, a respected scholar of Macau’s gaming law and history. In a written opinion published by Macau Business last year, Mr. Godinho argued that the existence of satellite casinos had long undermined the integrity of the city’s tightly regulated concession system, originally intended to operate as a “controlled” oligopoly. The sharp rise in satellite casinos between the 1990s and 2007 “should never have happened,” he wrote. The scholar argued that the recent regulatory reforms and accompanying closures have restored the industry to its original framework. While Macau may face short-term challenges, including job losses, reduced gaming revenue, and adverse impacts on local businesses, he believes the city can weather these setbacks in favour of long-term stability and compliance.
LIMITED IMPACT ON REVENUE Government estimates previously indicated that the 11 affected satellite casinos collectively operated around 480 gaming tables, accounting for just 8 per cent of Macau’s 6,000 tables, and 270 gaming machines, or 2.25 per cent of the city’s 12,000 machines. These venues contributed only a “low single-digit” share to overall gaming revenue, suggesting limited systemic exposure. Despite the phased closure of the remaining satellite casinos in the second half of 2025 - following a joint announcement in June by the government and the relevant gaming concessionaires that these venues would either shut down or transition to self-managed operations - Macau’s gaming revenue has remained resilient. According to the latest official data, Macau’s total gross gaming revenue surged 9.1 per cent year-on-year to MOP247.4 billion (US$30.86 billion) in 2025, bolstered by a stronger second-half performance with a 13.7 per cent increase. The
figure now reflects a recovery to 84.6 per cent of the pre-pandemic peak in 2019, when revenue hit MOP292.46 billion.
Gaming analysts also anticipate that the closure of satellite casinos would have minimal impact on overall revenue, as satellite patrons would likely migrate to alternative venues operated by the city’s six concessionaires. In a recent note, brokerage Citigroup reported that several casinos run by concessionaires, including StarWorld, City of Dreams, Wynn Macau, and Casino Lisboa, have opened new gaming zones with lower minimum bets to attract former satellite players.
Citigroup added that gross gaming revenue figures for 2025 indicate that the passion for gaming and spending appetite among affluent players remains strong. It expects Macau’s gaming revenue to grow by 6 per cent in 2026, supported by the expansion of non-gaming offerings, such as concerts and lifestyle experiences, and the continued strength of the premium player segment.
Another investment bank, UBS, offered a similar outlook, forecasting that Macau’s gross gaming revenue and casino EBITDA (earnings before interest, taxation, depreciation, and amortisation) will grow by 6 per cent and 7 per cent in 2026. “[Industry] margins should remain broadly stable in 2026, supported by demand diversion from satellite casinos and a steady competition environment,” it added.
STABLE OUTLOOK
At the beginning of 2025, nine of the 11 remaining satellite casinos operated under the licence of SJM Holdings, with one each under Galaxy Entertainment Group and Melco Resorts & Entertainment. SJM initially expressed interest in converting both Casino L’Arc and Casino Ponte 16 into self-managed casinos. However, only the former was acquired, with SJM paying HK$1.75 billion (MOP1.8 billion/US$224.6 million) for Casino L’Arc and its associated hotel, while plans to purchase Casino Ponte 16 were ultimately shelved. L’Arc Macau, where Casino L’Arc is located, was linked to interests represented by Angela Leong On Kei, co-chairman and executive director of SJM Holdings, prior to the acquisition. At the takeover ceremony of L’Arc Macau in late December, Daisy Ho Chiu Fung, chairman of
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