Macau gaming operators are anticipating regulatory fine-tuning for satellite casinos in 2025. This expectation was shared with Bank of America, although the names of the operators were not disclosed.
Following meetings with all six gaming operators, Bank of America revealed that some operators believe the newly introduced “once-a-week” visa policy for Zhuhai residents visiting Macau may eventually be extended to other Mainland cities. This could benefit satellite casinos, allowing them to remain operational beyond 2025.
The current regulatory plan for satellite casinos is temporary. Under this plan, satellite casinos will continue to share gaming revenue with the concessionaires until the end of 2025. After 2025, however, satellite casino operators may be required to transition to management companies, which will no longer be permitted to share in gaming revenue. Instead, they would only receive a management fee.
Some opinions indicate that the future of the satellite casinos depends on the definition of the management fee and whether there will still be a significant profit for the operator, while the concessionaire will bear the costs.
The “once-a-week” visa policy for Zhuhai residents visiting Macau, along with the unlimited travel visa for Hengqin residents, will take effect in 2025. The policy means that citizens from these neighboring areas, with a combined population of nearly 3 million, will be able to visit Macau repeatedly.
Macau’s visitation from Zhuhai, a key city in Guangdong Province, has shown significant growth in 2024, reflecting a broader trend of increased tourism to the region. As of October 2024, the total number of visitors from Zhuhai reached 2.8 million, marking a 46 percent year-on-year increase. This growth has outpaced the overall rise in Macau’s visitation, which saw a 28 percent year-on-year increase during the same period.
Zhuhai accounts for 26 percent of Macau’s total visitors from Guangdong and 14 percent of all visitors from mainland China, underlining its importance as a major source of tourism. However, despite the strong growth figures, the majority of visitors from Zhuhai (77 percent) were day-trippers, limiting their impact on the local hospitality sector.
Day-trippers typically spend less time and money in Macau, and they now represent 4.7 percent of the city’s overall overnight visitation, an increase from 3.9 percent during the same period last year. This suggests that while day trips are contributing to the overall increase in visitation numbers, the share of overnight stays remains relatively low.
Legislator questions satellite casinos’ transition deadline
On Tuesday, during a plenary session of the Legislative Assembly, legislator Leong Sun Iok raised concerns in a spoken inquiry about the three-year transition period for satellite casinos, which is set to expire at the end of next year. He expressed worries regarding the future of over 10,000 employees.
In response, Secretary for Economy and Finance Lei Wai Nong emphasized that satellite casinos operate under the concessionaires’ licenses and that the responsibility for all employees lies with these companies. He also highlighted that the handling of employee matters is governed by legal regulations.
Currently, Macau has 30 casinos, including 11 satellite casinos, nine of which operate under SJM’s license. The remaining two are operated under the licenses of Galaxy Entertainment and Melco. Seven satellite casinos were closed in 2022, impacted by the new gaming law and the adverse effects of the COVID-19 pandemic.
As previously reported by ABG, the Macau government has not yet begun discussions with operators about the future of satellite casinos. Jay Chun, co-chairman and managing director of Paradise Entertainment, has publicly expressed hope that talks with the authorities will begin “soon.” Paradise Entertainment operates Casino Kam Pek on the Macau peninsula under the gaming license of SJM Holdings.
Some opinions also suggest that Macau’s incoming Chief Executive, Sam Hou Fai, who will take office on December 20th, will be the key figure in following up on the satellite casinos’ future.
