Macau gaming operator SJM Resorts has confirmed it will not proceed with its planned acquisition of the property housing Casino Ponte 16 and will permanently close the casino on November 28th, marking a significant shift in the company’s peninsula strategy amid Macau’s ongoing phase-out of satellite casinos.

The operator simultaneously advanced its acquisition of L’Arc Hotel, which it intends to convert into a fully self-operated gaming property, according to a company press release issued on Thursday after trading hours.

The Macau government reiterated in June that all satellite casinos must cease operations by the end of 2025, affirming the three-year transition period established during the revision of the Macau gaming law. SJM had previously indicated it intended to acquire both Ponte 16 and L’Arc Hotel to integrate them into its self-operated portfolio. However, the company had not provided further updates on the Ponte 16 deal until now—just 40 days before the shutdown deadline.

In a statement, SJM Resorts said the decision followed ‘a comprehensive business review’ and a ‘thorough assessment of long-term business planning, commercial considerations and resource prioritization’ across the group. The company said it will now focus resources on core operations and assets that align more closely with its long-term strategic objectives.

Under a mutual termination agreement with Pier 16 Entertainment Group, Casino Ponte 16 will cease operations at 23:59 on November 28th. All gaming tables and machines will be redeployed to other SJM-run casinos to ‘ensure service continuity for customers’, the operator confirmed.

Employment commitments amid closure

The company emphasized that employment protection remains a priority. ‘All local employees employed by SJM Resorts will remain employed and be reassigned to other casinos’, the statement said, adding that non-SJM local staff will be invited to apply for vacancies and receive assistance to ensure ‘a smooth transition’.

SJM said it does not expect the closure to materially affect the group’s business, liquidity or financial condition, though industry analysts note that the operator has faced intensifying pressure throughout 2025 as satellite properties wind down.

The company’s third-quarter results underscored these challenges. SJM Holdings reported a 91 percent year-on-year decline in profit attributable to owners, falling to HK$9 million ($1.16 million), citing competitive headwinds and the phased cessation of satellite operations as key factors.

SJM pushes forward with L’Arc Hotel acquisition

While stepping back from the Ponte 16 acquisition, SJM is simultaneously moving ahead with its purchase of L’Arc Hotel—a major peninsula property comprising hotel rooms, food and beverage outlets, retail spaces, and the casino currently operated by SJM under a services arrangement.

SJM will acquire 100 percent of Arc of Triumph Development Company Limited, the owner of L’Arc Hotel, for a total consideration of HK$1.75 billion ($224 million), a price consistent with an independent valuation of the property’s market value.

According to the transaction terms, the HK$1.75 billion ($224 million) consideration includes both a nominal purchase price for the target company’s equity and repayment of a large portion of its outstanding bank loan. As of the signing date, the company behind L’Arc Hotel carried HK$1.93 billion ($247 million) in bank debt. SJM will arrange repayment of up to nearly HK$1.75 billion ($224 million), while MOP180,000 ($22,000) will be paid as nominal consideration for the transfer of 100 percent of the company’s shares.

The remaining HK$177.5 million ($22.7 million) shortfall will be borne by the vendors and financed through a separate loan provided by SJM Resorts to the vendors’ beneficial owner. The loan carries a three-year term, bears interest at the group’s current credit facility rate, and is secured by a share charge over SJM Holdings shares owned by the vendor’s controlling party.

Chairman Daisy Ho said L’Arc’s central location in Macau’s highest-density entertainment corridor presents a strong strategic opportunity. “With the casino currently operating below its full potential, we see considerable room for growth as part of a stronger, integrated network under SJM Resorts,” Ho said.

She added that acquiring L’Arc would “enhance coordination across our peninsula properties” and generate “cross-promotional synergies,” while ensuring a “smooth transition for employees.”