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Macau’s 11 satellite casinos to shut by year-end, authorities dismiss impact on overall GGR

All 11 of Macau’s remaining satellite casinos will close by December 31st, 2025, the government confirmed in a press conference, marking the end of an era in the city’s gaming industry.

Mocha Clubs, Melco Resorts-Macau

The move also includes the closure of three Mocha Club slot lounges run by Melco Resorts, though authorities downplayed any major impact on gross gaming revenue (GGR) for 2025.

At a press conference, Secretary for Administration and Justice André Cheong said the closures were the result of decisions made by the three involved concessionaires — SJM Resorts, Melco Resorts, and Galaxy — and not due to government intervention.

“It is a commercial decision, and they decided to close the properties,” he said. “We don’t believe it will have an effective impact on GGR, but on the other hand, it will have a positive impact on their operations.”

The government had already downgraded 2025 GGR projections by MOP12 billion ($1.5 billion) in its recent budget proposal, but attributed the decline mostly to changes in mainland visitor consumer habits.

The closures come ahead of the expiration of the three-year transitional period granted under Macau’s amended gaming law (Law 7/2022), which allowed satellite casinos — gaming operations located in third-party-owned properties — to continue until the end of 2025. After that deadline, operators can no longer share gaming revenues with property owners.

MAcau

According to Ng Wai Han, Director of the Gaming Inspection and Coordination Bureau (DICJ), the 11 satellite casinos together account for around 480 gaming tables and 270 slot machines.

Among the affected properties are SJM Resorts’ Casino Grandview, Casino Legend Palace, Casino Fortuna, and others, as well as Casino Grand Dragon, operated by Melco Resorts, and Casino Waldo, operated by Galaxy Casino.

Prior to the press conference the affected gaming operators issued announcements revealing the closures.

Melco will also shut down three of its six Mocha Clubs slot machine parlors — Grand Dragon, Royal, and Kuong Fat — by year-end. The remaining three will continue to operate through third-party management arrangements.

SJM Resorts, meanwhile, is considering acquiring the casino segments of Casino Ponte 16 and Casino Le Royal Arc and may apply to operate the casinos as directly-managed properties. “SJM wants to acquire two hotels (casinos). If they will continue operating, it is a commercial decision by SJM,” Cheong said.

While no specific closure dates have been disclosed beyond the December 31st cutoff, Cheong emphasized that the government acted quickly once the concessionaires finalized their decisions.

“Since it impacts a large number of workers, the minute we got a decision, we decided to announce it so a resolution on the workers can be reached as early as possible,” he said.

The Labor Affairs Bureau (DSAL) estimates about 400 nonresident workers are currently employed in these satellite casinos, together with 5,600 local workers – 4,800 employed directly by the gaming operators and 800 by the properties themselves.

DSAL Director Chan Un Tong said efforts are underway to support displaced workers.

“We have created a work committee and found many job offering opportunities that can be directed to these workers. We will also organize job matching sessions with the six gaming operators,” he said.

Cheong reaffirmed the government’s commitment to ensuring that staff are not left without support. “The thing we care about the most is that those workers do not pass by a period of unemployment between any changes”.

Authorities also said the impact on the broader economy and small businesses near the affected casinos is being closely monitored.

Impact on surrounding SMEs

Secretary for Economy and Finance Tai Kin Ip noted that an inspection of surrounding businesses found 320 small- and medium-sized enterprises (SMEs) employing about 800 people.

“Maybe half of the stores will be impacted, especially pawnshops, jewelry stores, or tobacco, liquor stores, and restaurants. But maybe 70 percent will not be impacted directly, because they depend mostly on tourists,” Tai said.

He added that the Monetary Authority of Macau (AMCM) is working with banks to help SMEs ease potential credit risks, and described the situation as “a challenge but an opportunity for renewal.” The government plans to support affected businesses that wish to continue operating.

As for the banking sector, Tai said employee mortgages pose minimal risk. “Mortgages are only 1 percent of the bank activities so there is not much risk for the sector. The risk supervising department also assessed that the risks are not high,” he said.

Government officials made it clear that the decisions to shut down were made independently by the gaming operators. “The three gaming operators have already made their decision […] they have needed to think about whether it has a good contribution to their revenue,” Cheong said.

Nelson Moura
Nelson Mourahttp://agbrief.com
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.

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