Macau, China, June 9, 2025 (Lusa) - Macau authorities said on Monday that the closure of 11 ‘satellite casinos’ “will not have a significant impact” on gambling revenues, guaranteeing that they will closely monitor the relocation of workers affected by the closure.
“We believe that the decision to operate gambling and its development will not have an effective impact on gambling revenues, but will have a positive impact on the operation of gambling,” said Secretary for Administration and Justice André Cheong at a press conference.
Three of the six gambling concessionaires operating in Macau - SJM, Galaxy and Melco - have informed the authorities that they will end the operation of the 11 existing ‘satellite casinos’ by December 31, André Cheong noted.
The ‘satellite casinos’, under the jurisdiction of these concessionaires, are managed by other companies and are a legacy of the Portuguese administration that existed before the liberalisation of gambling in the territory in 2002.
When the legislation regulating casinos was amended in 2022, the end of 2025 was set as the deadline for these gambling venues to cease operations.
Now, operators can decide to take over the direct management of the casinos, close their doors or sign new management contracts, but without sharing revenues, as required by the new legislation.
Of the ‘satellite casinos’ operating in Macau, nine belong to SJM, one to Galaxy and another to Melco, which also has six Mocha clubs - gablming machine rooms.
SJM will consider acquiring ownership of the hotels where two ‘satellite casinos’ are located - Ponte 16 and Casino Royal Arc - and will request the authorities to “allow gambling to be operated in the form of “directly operated casinos”,” said Cheong.
Melco, he continued, has announced the closure of the Grand Dragon casino and three Mocha clubs, although it intends to operate three others “through the hiring of a management company”.
“It was a commercial decision made by the three concessionaires,” said the secretary for Administration and Justice, noting that the option may be influenced, for example, by whether or not the “satellite casino will have a positive impact on the concessionaire’s gambling revenues.”
With regard to the approximately 5,600 local workers affected by the closure, the authorities are demanding that operators guarantee employment and will, according to the secretary, “closely monitor the situation”.
In addition to the future of the workers, the activity of businesses close to these gambling venues - 320 small and medium-sized enterprises, including pawn shops, jewellers and shops selling tobacco or alcohol - is also likely to be affected by the closure.
However, 70% of businesses in the vicinity “will not be directly affected,” said Secretary for Economy and Finance Tai Kin Ip at the press conference.
The world’s gambling capital, with revenues twice those of Las Vegas, Macau is the only place in China where casino gambling is legal.
Six concessionaires operate in the territory, MGM, Galaxy, Venetian, Melco, Wynn and SJM, which renewed their concession contract for the next ten years in December 2023, which came into force on January 1, 2024.
The territory’s casinos collected 21.193 billion patacas (about €2.31 billion) in May, compared to 20.188 billion patacas (about €2.2 billion) in the same month of 2024, according to data released earlier this month by the Gambling Inspection and Coordination Bureau (DICJ).
This is the highest figure since January 1, 2020, when casino revenues reached 22.1 billion patacas (€2.41 billion).
Since the end of January 2020, the Covid-19 pandemic has had an unprecedented impact on gambling, Macau’s economic engine, with taxes on revenues from this industry financing the overwhelming majority of the government’s budget.
CAD/AYLS // AYLS
Lusa
