All 11 satellite casinos in Macau will cease operations by December 31, 2025. This decision was jointly announced by SJM Holdings, Melco International, and Galaxy Entertainment, the three major gaming operators, affecting approximately 5,600 local employees, of whom about 4,800 are directly employed by the gaming license companies, with another 800 employed by the venue owners.
Background of Satellite Casinos Withdrawal
According to the revised "Legal System for the Operation of Gaming and Betting Venues" (No. 7/2022) in 2022, Macau's satellite casinos were given a three-year transition period, allowing them to operate on a profit-sharing model until the end of 2025. After the transition period, regulations require that satellite casinos can only be operated by licensed gaming companies on their own premises, discontinuing the profit-sharing model.
Gaming Operators' Strategies: Closure, Transformation, and Asset Acquisition
Due to regulatory and commercial factors:
SJM Holdings (SJM) will close its nine satellite entertainment venues by the end of the year and is negotiating the acquisition of two properties (Ponte 16 and Grand Emperor), planning to operate them directly in the future.
Melco International Development (Melco) will close its Jumbo Palace and three "Mocha Club" slot machine halls, and plans to operate three other locations with management rights.
Galaxy Entertainment's Waldo Casino will also cease operations by the end of the year, with staff being reassigned to other properties within the group.
Employee Arrangements and Government Support
The Macau SAR government is highly concerned about the fate of employees and has made meticulous arrangements:
It requires the three major gaming license companies to properly place all local employees they have deployed, and urges the owners of satellite venues to arrange job transitions for the remaining employees.
The Labor Affairs Bureau has set up a hotline, sent commissioners to the sites to assist in negotiations, held on-site briefings, and provided vocational training and employment matching services.
The Secretary for Economy and Finance and the Secretary for Justice stated that they will closely monitor the economic vitality and development of merchants in the area, and plan inter-departmental measures to ensure community stability.
Impact on the Industry and Local Area
Employment impact: The closure of 11 satellite casinos will affect 5,600 local employees, most of whom can be reassigned, but it still brings short-term instability to individuals and families. Unions and legislative bodies are calling for extended unemployment protection and support for career transitions.
Industry structure adjustment: With the end of the transition period, Macau's gambling industry will further concentrate on large licensed casinos, shifting profits from profit-sharing to management fee models; meanwhile, the industry is expected to improve efficiency and table output rates.
Economic level of the community: The government emphasizes supporting non-gambling activities to enhance regional attractiveness, while promoting bids for large casino complexes to foster diversified development of the tourism and service industry.
Outlook and Summary
The withdrawal of satellite casinos is not a sudden decision, but an inevitable result under legal reforms. The coordination measures between the government and the industry show a high level of policy coordination, including employee transition, community revitalization, and industry upgrading. Meanwhile, institutional restructuring and asset integration will inject new operating models into the gambling industry.
For the future of Macau's gambling industry, the reform is both a challenge and an opportunity. Whether it can smoothly complete personnel placement, stabilize market operations, and develop diversified industrial layouts will test Macau's adaptability and resilience in the post-satellite era.
