Employees impacted by the closure of the 11 casinos will be redeployed, per their respective companies’ announcements. Existing gaming machines and tables will likewise be transferred to other properties
Macau’s casino operators are set to close 11 satellite casinos, in line with the government’s continued effort to diversify the special administrative region’s economy and end its reliance on gambling. Affected employees will be redeployed across concessionaires’ main properties.
Macau to Close 11 Casinos
Macau’s ambition to minimize its economic reliance on gambling continues as the region prepares to close 11 satellite casinos by the end of 2025. Satellite casinos, for context, are smaller gaming halls operated by third-party partners of Macau’s casino concessionaires.
Seven of the eleven properties in question are operating under SJM Holding’s license. At the same time, the company added that it plans to purchase its remaining two satellite casinos (Ponte 16 and L’Arc Macau) and operate them directly.
In the meantime, Melco Resorts & Entertainment confirmed that it will be ending its Grand Dragon Casino, as well as three of its Mocha Club slots gaming halls, including the Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel. Galaxy Entertainment Group, on the other hand, confirmed the upcoming closure of the Waldo Casuno, attributing it to “commercial considerations.
Impacted Employees and Machines Will Be Redeployed
Earlier this week, Tai Kin Ip, Macau’s secretary for economy and finance, noted that there were approximately 5,600 locals employed at the satellite casinos, 4,800 of whom were directly employed by the concessionaires.
Employees impacted by the closure of the 11 casinos will be redeployed, per their respective companies’ announcements. Existing gaming machines and tables will likewise be transferred to other properties.
Experts predict that the addition of the extra machines and tables will offset the costs associated with hiring the 800 people employed by the satellite casino operators. Galaxy and Melco could see an immediate uplift in table yield, according to an analysis by CLSA.
Macau Seeks New Revenue Streams
As mentioned, Macau’s efforts to diversify its economy continue. The region has historically relied on gambling, which has had certain downsides, especially during troubled times for the industry. The COVID lockdown previously stuttered the casino sector, putting the Macau economy in jeopardy.
Although the region has mostly recovered since, its leaders are now ramping up the efforts to create additional revenue streams. To that end, Macau recently pressured concessionaires to invest in non-gaming verticals, such as culture, tourism and technology.
