The sweeping round of satellite casino closures is set to reshape Macau’s gaming landscape by the end of 2025, in what CLSA analysts called a ‘negative surprise.
In a press conference yesterday, the Macau government confirmed that three major concessionaires—SJM Holdings, Melco Resorts, and Galaxy Entertainment— had informed them of plans to cease operations at 11 venues.
The satellite casino sector has been under pressure since the 2022 amendments to Macau’s gaming law, which outlawed revenue-sharing models common in previous third-party partnerships.
In a dispatch following the decision, CLSA analysts Jeffrey Kiang and Leo Pan noted that the closures mark a significant development ahead of the full implementation of Macau’s revised gaming law, which requires that all casino operations either be directly owned by concessionaires or operate under non-revenue-sharing management agreements starting in 2026.
‘This is negative for Paradise Entertainment as its casino management business will cease from 2026,’ Kiang wrote in a note following the government’s announcement on June 9th.
The analysts expressed surprise and concern about the inclusion of some profitable casinos in the closure list, including Casino Kam Pek Paradise, Fortuna Casino, and Ponte 16, which CLSA has previously considered could be spared.
Gaming equipment supplier Paradise Entertainment currently operates Casino Kam Pek Paradise under the SJM umbrella, one of the seven satellite casinos SJM confirmed will be discontinued.
In a stock exchange filing, the group noted that it was advised that its service agreement with SJM ‘shall not be renewed or extended upon its expiry on 31 December 2025’ with a ‘material reduction in the reported revenue and profit’ expected afterwards.
For Paradise Entertainment, the loss of its casino management contracts poses a direct hit to its revenue base. As Kiang put it, ‘This is a structural shift that removes a critical revenue source for Paradise, leaving its future strategy uncertain.’
Among the shuttered properties are Casino Casa Real, Casino Emperor Palace, Casino Fortuna, Casino Grandview, Casino Landmark, and Casino Legend Palace—all operated under SJM. However, the company is exploring the possibility of acquiring and directly managing Casino L’Arc Macau and Casino Ponte 16.
Success Universe, which holds a 49 percent stake in Ponte 16, has already indicated that it ‘was aware’ of the announcement by SJM but that ‘no definitive and/or legally binding agreements or contracts in respect of the proposed acquisition.
‘SJM plans to negotiate potentially acquiring the remaining two, believing continuing operations to be beneficial to the Group—although no terms or binding agreement have been reached or signed,’ Kiang noted, citing the company’s filing with the Hong Kong Stock Exchange.
Melco Resorts also announced it will shut down Grand Dragon Casino and three Mocha Club venues that are not self-owned. Galaxy, meanwhile, confirmed it will discontinue Casino Waldo operations.
Despite the scale of the closures, Kiang said the overall impact on concessionaires is likely to be ‘broadly neutral,’ though he expects an upside for some. ‘Galaxy and Melco should see a more immediate uplift in table yield,’ he observed, as gaming tables and electronic machines are reallocated to core properties.
SJM, for example, is expected to shift tables to its flagship Grand Lisboa Palace. ‘We expect SJM’s plans to relocate tables from these satellite casinos to Grand Lisboa Palace will accelerate the ramp-up; but it will take time,’ Kiang wrote.
Employment impact
As for the almost 5,600 workers employed in the 11 satellite casinos, the Macau government emphasized that job protections are in place.
According to Secretary for Economy and Finance Tai Kin Ip, 5,600 local employees are currently on the payrolls of gaming operations owned by third-party investors but reliant on an official gaming concession.
Some 4,800 were hired by the three gaming companies involved, with the remaining 800 employed by the satellite operators themselves. An additional 400 are non-local employees.
SJM, for example, has pledged to reassign affected local employees, whether hired directly or through third parties, with Melco stating its employees would be assigned to
work at other properties in Macau.
