Macau’s satellite casino operators have expressed confusion over the lack of guidance from both the government and gaming concessionaires regarding the management fees for satellite casinos.
They have called for the government to take the lead in coordinating efforts to balance the interests of gaming operators and satellite casinos, ensuring profitability for the satellite venues, and stabilizing the business environment in the NAPE area of the Macau Peninsula, which is believed to be most affected by local economic headwinds.
The statement was reported by the local media outlet Macao Daily, but the report did not identify the names of the satellite casinos expressing this opinion.
Under the new Gaming Law, satellite casinos were granted a three-year transition period, running from January 1, 2023, to December 31, 2025, during which they can continue operating under the previous system. However, after this period ends, satellite casino operators will only be able to manage the casinos through a management company, with gaming operators paying a management fee. Satellite casinos will no longer be able to receive commissions or a share of the profits.
As the end of the transition period approaches, concerns about the future of satellite casinos have grown. Industry representatives have noted that neither the previous nor the current government has provided clear explanations regarding the definition, scope, or guidelines for the management fee.
Gaming operators have not engaged with satellite casinos to discuss or set standards for the management fee. This lack of communication has left operators uncertain about their future.

One such affected operator is Paradise Entertainment, which in a November update by co-chairman and managing director Jay Chun expressed hope that talks would begin “soon”. Paradise Entertainment runs Casino Kam Pek on the Macau Peninsula under the gaming license of SJM Holdings.
In the Macao Daily report, satellite casino operators argue that gaming facilities attached to hotels are part of the integrated tourism sector outlined in the “1+4” model, designed to attract visitors and support the growth of small and medium-sized enterprises (SMEs) in the surrounding area.
Currently, there are 11 satellite casinos, most of which are concentrated in the NAPE area of the Macau Peninsula. If these casinos become unprofitable and shut down, it will severely affect the area’s ability to attract and retain customers. The absence of business would lead to a lack of economic activity, impacting both the casino operators and the surrounding enterprises.

Business can continue after 2025
Satellite casinos are allowed to continue operations after 2025, provided they are managed by casino operators, as stipulated in the 2022 amendment to Macau’s gaming law.
The amendment clearly defines what is permissible and prohibited for satellite casinos once the three-year transition period ends on December 31st, 2025. Notably, it exempts satellite casinos from Section 2 of Article 5, which requires casinos to be located within properties owned by concessionaires.
As a result, analysts from CLSA noted in an investment memo earlier this year that the acquisition of satellite casino premises by concessionaires to sustain operations beyond 2025 is unlikely. Additionally, should satellite casinos cease operations, Section 5 of the amendment stipulates that they will not be allowed to resume casino operations.
In the same memo, CLSA highlighted that while the locations and number of satellite casinos will be closely examined, ‘only the remuneration mechanism for casino managers will change after December 31st, 2025.’ This change is expected to adjust how casino managers are compensated, affecting the operational structure of satellite casinos but without altering their overall role within the industry.
The specifics of how the ‘management fee’ for casino managers will be determined after 2025 remain uncertain. However, CLSA suggests that a performance-based fee structure is likely to be implemented, with certain escalators potentially linked to inflation, providing a feasible solution for both concessionaires and managers.