Macau’s satellite casino operators have reacted to the news of the shutdown of their gaming businesses in Macau, after Monday’s announcement that all 11 satellite operations would be shuttered by year-end.
The company facing slightly better odds is Success Universe, which holds a 49 percent stake in Ponte 16. On Monday, Macau gaming concessionaire SJM indicated that it was aiming to purchase the casino properties of both Ponte 16 and L’Arc to maintain them as self-operated casinos after December 31st when the grace period for satellite casino operations ends.
In a Hong Kong Stock Exchange filing, Success Universe 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 SJM’s Proposed Acquisition have been entered into […] and no detailed terms have been negotiated’.
Success Universe derived some HK$112 million ($14.4 million) from its share of Ponte 16 operations in 2024. While the company holds 49 percent of the stake in the property, SJM holds the remaining 51 percent.
Satellite closures bad news
One operator set to be hardly hit by the closure of its satellite operation is gaming machine equipment supplier Paradise Entertainment, who will see its Kam Pek Casino shuttered by year-end.
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’.
The group furthered that the revenue it derived from its provision of casino management services under the agreement in 2024 amounted to 66.2 percent of its total reported revenue for the year, or HK$718.3 million ($91.53 million).
It noted that a preliminary assessment indicates the ‘the Board experts to report a material reduction in the reported revenue and profit […] since 1 January 2026’.
The company halted trading of its shares on Monday in anticipation of the news but resumed trading on Tuesday.
Given that the group operated the casino under a service agreement, it leaves little room for negotiation, however the group notes that it will focus on its other business segments.
‘The Group remains committed committed to its strategic focus on the development, sale and leasing of electronic gaming equipment and systems in both Macau and overseas markets, where the Group has been expanding progressively, and the Board believes that this segment holds significant potential for growth in future,’ notes the filing.
Paradise also indicated that it is ‘actively enhancing its product offerings and seeking partnerships that will further strengthen its position in the gaming industry’, as well as ‘exploring alternative business opportunities’.
Looking to Emperor Entertainment, who will see its agreement for the gaming area in the Grand Emperor Hotel cease on December 31st, the group merely noted that ‘the Board is actively exploring any suitable business opportunities’.
For Macau Legend, which operates the Legend Palace satellite casino, the group noted that its service agreement would also end on December 31st. However, the group indicated that the impact of this ‘could be reduced or mitigated’.
The group noted that, due to the alterations to Macau’s gaming laws regarding satellite casinos, ‘the Group had expected the income associated with gaming business would be reduced even if the Service Agreement could be renewed’.
EBITDA generated from gaming services by Macau Legend totaled ‘approximately HK$15 million ($1.91 million)’ for the first four months of 2025.
The group notes that it will continue to allocate its resources to ‘optimize the facilities of the Macau Fisherman’s Wharf, and that it ‘expects to increase revenues from non-gaming business including hotel, convention and exhibition, food and beverage and leasing of the then available premises in the forthcoming financial year’.
