The future of Macau’s satellite casinos remains uncertain, as the Macau government and gaming concessionaires have not yet begun discussions on the issue.
There are 13 months remaining until the end of the three-year transitional grace period under the new gaming law. Based on the current situation, Macau’s satellite casino operators may need to transition to purely management companies, which will no longer be allowed to share gaming revenue.
According to a report from the Macau News Agency, Jay Chun, co-chairman and managing director of Paradise Entertainment, expressed hope that talks would begin “soon.” Paradise Entertainment operates Casino Kam Pek on the Macau peninsula under the gaming license of SJM Holdings.
Chun noted that, with the change in government, discussions will likely only begin after the new Chief Executive, Sam Hou Fai, assumes office on December 20, replacing Ho Iat Seng.
Last month, legislator José Pereira Coutinho raised concerns in a written inquiry to the Macau government about the future of satellite casinos and the potential for closures, which could affect the jobs of nearly 10,000 local workers.
Currently, Macau has 30 casinos, including 11 satellite casinos, nine of which operate under SJM’s license. Seven satellite casinos closed in 2022, impacted by the new gaming law and the adverse effects of the COVID-19 pandemic.
Chun expressed optimism that satellite casinos would continue to operate beyond the grace period. He emphasized the importance of protecting jobs, saying, “We have many employees, and no one wishes for these workers to abruptly lose their jobs.”
He also pointed out that the focus is now on calculating management fees. Since each satellite venue has its own unique circumstances, Chun indicated that the details of future discussions remain uncertain.
In September of this year, the Macao Gaming Industry Employees Home and the Macao Gaming Practitioners Volunteers Association met with then-candidate Sam Hou Fai, who is now the elected Chief Executive.
The industry representatives raised concerns regarding the possible shutdowns of satellite casinos, citing their potential impact on local employment.
The representatives called for the protection of the employment rights of gaming workers and highlighted that providing paid training is vital for the industry’s sustainable development. They urged that employees receive adequate support to adapt to the changing landscape.
