Macau’s shutdown of its satellite casino operations is claiming victims, with long-time operators facing significant losses that could take even stock-exchange listed companies under.
Macau Legend, which formerly operated the Landmark, Macau Fisherman’s Wharf and other assets overseas (including in Laos and a planned development in Cape Verde), now faces ‘multiple uncertainties relating to going concern’, according to the group’s most recent financial results.
The group is now attempting to pawn off its investment in Hengqin as well, in order to bolster its finances after a 1H25 loss of $182 million.
According to auditors, the group currently has ‘total bank and other borrowings’ amounting to HK$2.39 billion ($307.2 million) due for repayment within 12 months or ‘repayable on demand’. This, as the group’s current cash and bank balances ‘amounted to HK$21.7 million ($2.8 million) as at 30 June 2025’.
Given its defaults on loan covenants, current bank borrowings amounting to HK$2.05 billion ($263.5 million) could ‘become immediately repayable if demanded by the creditor bank’.
But the main issue is the closure of the group’s satellite casino operation in Macau, which ‘will be discontinued upon the expiry of the service agreement on 31 December 2025’.
The auditors further that, due to the circumstances of the company ‘it is not possible for us to form a conclusion on the interim financial information’, noting that if the group fails to achieve its proposed financial security plans ‘it might not be able to continue to operate as a going concern’.
