Macau gaming operators Melco Resorts, Galaxy Entertainment and SJM Holdings have confirmed they will close several satellite casinos by the end of 2025.
In Macau, most satellite casinos are now marked for closure before the end of the year.
In a news release Monday, Melco Resorts & Entertainment announced it will close its Grand Dragon Casino and three slot lounges operating under the Mocha Club brand. Melco said the closures are in line with “the company’s overall development strategy and in accordance with Macau law”.
It plans to maintain Mocha Inner Harbour, Mocha Hotel Sintra and Mocha Golden Dragon, subject to government approval.
Galaxy Entertainment Group announced, meanwhile, it will close the Waldo Casino “due to commercial considerations”. It, too, pledged to shift workers to other properties in Macau.
SJM Holdings is wielding the biggest ax. The concessionaire will shut down seven of its nine satellites this year while making plans to acquire the two others, Ponte 16 and L’Arc Macau, and shift them to the directly managed model.
SJM said the move supports its “long-term objectives [and] overall competitiveness”. Properties on the block include Casa Real, Emperor Palace, Fortuna, Grandview, Kam Pek Paradise, Landmark and Legend Palace. Their current service agreements will expire on 31 December.
All affected workers will receive “job opportunities within SJM Resorts’ portfolio of properties”, said the company.
New industry template, tied to management fees
In 2022, the Macau government amended its gaming laws prior to granting six new 10-year casino concessions. It gave satellites three years to shift from a profit-sharing model to a structure in which they are directly owned by licensees. Those that survive the transition will make their money through management fees, not shared revenues.
Gaming analyst Chan Chi Leong told Macau Business that satellites are traditionally responsible for all operational costs, including salaries. The concessionaires, meanwhile, pay gaming taxes, about 40% of gross revenue. Historically, satellites have earned from 55% to 57% of GGR, with concessionaires picking up the rest.
Satellites will remain part of the Macau gaming mix, possibly with management fees adjusted for inflation.
Citywide, up to 6,000 jobs at 11 satellite casinos may be affected. The Macau Labour Affairs Bureau promised to “closely monitor the situation” to ensure operators make good on their pledge to reassign employees.
