MACAU BUSINESS
SJM Holdings, also commented that former satellite casino patrons are now seeking venues that feel familiar and comfortable, offering experiences similar to those they had grown accustomed to. She added that about 400 gaming tables recovered from the shuttered satellite casinos will be redistributed across SJM’s self-managed properties, including Grand Lisboa, Hotel Lisboa, Casino Oceanus, Grand Lisboa Palace, and L’Arc Macau. Billy Song Wai Kit, president of the Macau Responsible Gaming Association, remarked that the closure of all satellite casinos has effectively removed small-scale gaming venues from the local market. “The local gaming industry has shifted towards standardised operations, which is a positive development for government oversight and regulation,” he said.
He expects the gaming market to remain stable, as the industry continues its transition towards a mass-market-driven structure. “With the sector now more mature, the era of rapid revenue growth is likely behind us, with only minor fluctuations expected,” he added.
The closure of satellite casinos has also had implications for employment. Government estimates suggest that around 5,600 local workers and 400 non-resident employees were directly employed by satellite casino companies. To mitigate the impact, authorities have repeatedly called on the concerned gaming concessionaires to absorb affected staff, an effort that has helped keep unemployment levels low in the city. SJM Holdings, which operated nine of the 11 remaining satellite venues, reportedly absorbed over 4,000 workers into its self-managed operations.
NO HEYDAYS
Beyond employment, the closures have also impacted neighbouring businesses that relied heavily on casino foot traffic, as well as the city’s financial system. Real estate service consultancy Savills Macau has estimated that the total outstanding loans tied to local satellite casinos and surrounding businesses range between HK$25 billion and HK$39 billion. Despite these figures, Macau officials have minimised the systemic
financial risks, stating that loans to satellite casino operators account for less than 1 per cent of total bank lending in Macau, making the financial impact “controllable.”
To reinvigorate the NAPE district - where most satellite casinos were located - the government has initiated various efforts, including a summer food festival and seasonal photo installations during Christmas, aimed at boosting consumer foot traffic. Plans are also underway to create more immersive cultural and tourism-driven experiences to reshape NAPE’s image and stimulate spending. However, merchants have reportedly expressed disappointment towards the results, citing continued lack of customers and claiming that the government’s measures have failed to generate meaningful business.
Luiz Lam Kai Kuong, a Macau gaming veteran and former junket operator, expressed doubt over the effectiveness of the government’s revitalisation efforts: these measures are limited in impact and unlikely to generate substantial consumer spending to fill the gap left by satellite casino customers. He also noted that hotels housing former satellite
Last 11 Satellite Casinos
9 June - The Macau government, along with gaming concessionaires SJM Holdings, Galaxy Entertainment Group, and Melco Resorts, announce that all of the city’s remaining 11 satellite casinos will either shut down or transition to self-managed operations by the end of 2025.
30 July - Grandview Casino, operated under SJM’s license and located in Grandview Hotel in Taipa, ceases operations.
22 September - Melco Resorts’ Grand Dragon Casino in Grand Dragon Hotel in Taipa officially closes.
30 October - Casino Emperor Palace, under SJM’s license and situated in the Grand Emperor Hotel on the Macau Peninsula, closes. 31 October - Waldo Casino, housed in Waldo Hotel under Galaxy Entertainment Group’s license, shuts down. 12 November - Casino Legend Palace under SJM, located at Macau Fisherman’s Wharf, closes. 21 November - SJM’s Casa Real Casino, located in Casa Real Hotel, ceases operations.
28 November - SJM scraps its plan to acquire Casino Ponte 16, located within the Ponte 16 complex in the Inner Harbour area. The satellite casino closes at 11:59 pm. 1 December - SJM’s Kam Pek Paradise Casino, located in the NAPE district, shuts down. 9 December - Casino Fortuna, under SJM Holdings and housed in Fortuna Hotel, closes.
30 December - Casino L’Arc transitions from a satellite casino to a self-managed property at 2 am, following SJM’s HK$1.75 billion acquisition of the venue and L’Arc Macau hotel.
30 December - SJM’s Casino Landmark in the New Orient Landmark Hotel closes, marking the final exit in the satellite casino phase-out.
casinos are now struggling to operate without a core revenue stream.
“They have to endure before thinking of a way out, because they’re burdened by loans. If they shut down, they’ll have to cover the shortfall or risk repossession by banks. Without gaming revenue to subsidise operations, they will be forced to make significant cuts in other expenses of the operations,” he added.
On the broader outlook for Macau’s gaming industry, he also believes the closure of satellite casinos will have limited impact on overall revenue, as players are likely to shift to other venues. However, he sees little room for growth in what he describes as an increasingly tightly regulated environment, further constrained by the decline of the VIP market and the exit of most junket operators under stringent regulatory measures. “Given the current development trend, Macau’s gaming revenue is unlikely to return to previous highs of over MOP300 billion per year. The higher the gaming revenue growth, the greater the risk of triggering concern from the central government,” he warned.
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