Emperor Entertainment Hotel Limited announced in a statement to the Hong Kong Stock Exchange on Friday that it has decided not to renew its service agreements with gaming operator SJM and, consequently, cease its gaming operation at Grand Emperor Hotel in Nam Van on June 26.
According to the statement, the casino at the hotel is run under SJM’s gaming concession. The statement said that as Emperor Entertainment Hotel Limited “has been facing a tough business operating environment arising from the COVID-19 pandemic over the past two years…, and considering the gloomy outlook of the high-end gaming segment,” its board of directors decided not to renew the service agreements with SJM.
The casino at Grand Emperor Hotel is a so-called satellite casino, i.e., a casino that is owned by one of Macau’s gaming concessionaires or sub-concessionaires but run by a third party on its behalf.
Macau’s 18 satellite casinos face an uncertain future as the government’s gaming industry amendment bill states that in future all casinos – including satellite casinos – must be located in properties owned by Macau’s up to six gaming concessionaires. The bill proposes a three-year transition period for the satellite casinos to adjust their situation to the new law, which is slated to take effect later this year, once it has been passed by the legislature.
The bill aims to tighten the government’s leash on the gaming sector. A separate bill aims to do the same concerning the junket industry. Government officials have said stricter controls are needed to prevent money laundering and other gaming-related crimes that do not only hurt Macau’s image as an international leisure destination but also harm the country’s overall interests, including national security.
Local media reports have speculated that about half of Macau’s satellite casinos will close their doors this year.
According to the Gaming Inspection and Coordination Bureau (DICJ), Macau had 42 casinos at the end of last year, four of which – all of them owned by SJM – had their operations suspended at that time. The 42 casinos comprise gaming operators’ “self-promoted” casinos and satellite casinos.
Suncity ceases travel business
Meanwhile, Suncity Group Holdings Limited announced in a statement to the Hong Kong Stock Exchange on Friday that it has decided to cease all its travel and related business with immediate effect, which had accounted for around 12.6 percent of the total revenue from its continuing operations last year.
In the statement, Suncity revealed that its aircraft was “disposed of” on December 31 last year.
Two former junket company bosses have been remanded in custody for suspected money laundering and organised crime activities – Suncity’s Alvin Chau Cheok Wa and Tak Chun’s Levo Chan Weng Lin.
Meanwhile, junket operator Macau Golden Group, which cooperated with SJM, said in a statement last month that it decided to terminate all VIP gaming operations from March 30.
According to unconfirmed media reports last week, Golden Dragon Group of former lawmaker Chan Meng Kam will close its four satellite casinos later this year.
