The government announced yesterday that all 11 “satellite casinos” in Macau will close for good by December 31 this year and that the respective gaming concessionaires that formally own the satellite casinos will be required to continue hiring all their current employees working there after the closure.
The 11 satellite casinos comprise nine owned by SJM, one owned by Galaxy, and one owned by Melco.
The government also announced yesterday that SJM is “considering” the possibility of acquiring the ownership of the hotels where two of its nine satellite casinos are located in order to convert them into “directly-operated” casinos after their respective closures as satellite casinos.
The so-called satellite casinos in Macau are formally owned by gaming concessionaires but are actually run by third parties as they are housed on premises that are not owned by the respective gaming concessionaires.
The satellite casinos are currently operated under partnership models where the respective gaming concessionaires and third parties share the revenues.
The new 10-year concessions of the city’s current six gaming operators started on January 1, 2023, namely SJM, Galaxy, Melco, Sands, MGM, and Wynn. The six concessions were granted by the government through public tender in 2022 after the gaming law’s amendment bill was passed by the legislature earlier that year.
According to the gaming law’s amended version, all casinos must be housed in premises that are owned by their respective gaming concessionaires.
The new legislation amending the gaming law stipulates a three-year transition period, which started on January 1, 2023 when the six new gaming concessions commenced during which existing satellite casinos can continue operating under their current partnership models.
After the three-year transition period, which is scheduled to end on December 31 this year, a satellite casino, which is housed on premises not owned by the respective gaming concessionaire, will have to be run by a “management company” to be hired by the gaming concessionaire. The management company will no longer be allowed to share the casino’s revenues with the respective gaming concessionaire, which, instead, can only pay the former a management fee.
The three gaming operators’ respective decisions to close all the 11 satellite casinos were announced during a press conference at Government Headquarters yesterday, which was co-hosted by Secretary for Administration and Justice André Cheong Weng Chon, Secretary for Economy and Finance Anton Tai Kin Ip, Gaming Inspection and Coordination Bureau (DICJ) Director Ng Wai Han, and Labour Affairs Bureau (DSAL) Director Chan Un Tong.
Cheong said that the local government has received official notifications from SJM, Galaxy, and Melco concerning their respective decisions to terminate the operations of their 11 satellite casinos by December 31 this year, adding that the government has required the three gaming concessionaires to “properly resolve the employment of the affected workers”.
Cheong pointed out that according to the new legislation amending the gaming law, the three-year transition period for satellite casinos will expire on December 31, 2025. Cheong said that the three gaming concessionaires have decided to terminate the operations of all the 11 satellite casinos before the expiration of the transition period based on their respective commercial decisions, comprising Grandview, Legend Palace, Fortuna, Landmark, Ponte 16, Le Royal Arc, Emperor Palace, Kam Pek Paradise and Casa Real owned by SJM, Waldo owned by Galaxy, and Grand Dragon owned by Melco.
Cheong also said that SJM was “considering” the possibility of acquiring the ownership of the hotels where casinos Ponte 16 and Le Royal Arc are located with the aim of applying to the government to operate them as “directly-operated” casinos after their respective closure as a satellite casino, in compliance with the relevant provisions listed in the gaming law’s current version.
Moreover, Cheong also announced Melco’s decision concerning its six Mocha slot-machine parlours that are currently not housed on its own premises.
According to Cheong, Melco will close the Grand Dragon, Royal and Kuong Fat slot-machine parlours by December 31 this year, while it will, in accordance with the relevant provisions listed in the gaming law’s current version, apply to the government to continue operating the Golden Dragon, Inner Harbour and Sintra slot-machine parlours through the hiring of management companies.
Cheong also said that the government “respects” the commercial decisions made by the three gaming concessionaires to terminate the operations of all the 11 satellite casinos and three Mocha slot-machine parlours by the end of this year.
During yesterday’s press conference, Tai announced details of the government’s measures concerning the employment of the affected local workers.
Tai underlined that the government will ensure that the three gaming concessionaires will make proper arrangements concerning the employment of the affected local workers.
In addition, Tai said, the government will provide support for the affected local workers to ensure that their legal rights and interests will not be harmed.
According to Tai, there are currently about 5,600 local employees working at the satellite casinos, of whom around 4,800 are directly employed by the respective gaming concessionaires, while around 800 are employed by the third-party operators.
Tai said that the government has required the three gaming concessionaires to continue employing all the local employees working at the satellite casinos currently employed by them, while the third-party operators also “have the responsibility” to continue employing the local employees currently working for them.
Tai also said that there are currently about 400 non-resident workers (NRWs) working at the satellite casinos.
Tai also said that the six Mocha slot-machine parlours currently employ about 300 local workers and 50 non-resident workers.
Cheong underlined that the satellite casinos’ third-party operators “have the responsibility” to ensure the protection of the employment of the local workers currently working for them. He was quick to add that if the respective third-party operators are eventually unable to hire all their affected local workers after the closure of the satellite casinos, the three gaming concessionaires, as they have promised the government, will then hire them to work at other gaming businesses.
Cheong also said the government believed that the closure of the 11 satellite casinos will not adversely affect the city’s gross gaming revenues.
SJM, Galaxy and Melco promised in separate statements to continue employing all those local satellite casino staff directly employed by them right now.
Currently, the six gaming operators own a total of 30 casinos – SJM owning 13, Sands owning five, Galaxy and Melco each owning four, and MGM and Wynn each owning two.
People gather outside the entrance to the Ponte 16 casino at the Ponte 16 hotel resort in the Inner Harbour district yesterday. – Photo: Maria Cheang Ut Meng
Secretary for Administration and Justice André Cheong Weng Chon (second from left) speaks during yesterday’s press conference at Government Headquarters about the closure of all the current 11 satellite casinos as Secretary for Economy and Finance Anton Tai Kin Ip (second from right), Gaming Inspection and Coordination Bureau (DICJ) Director Ng Wai Han (left) and Labour Affairs Bureau (DSAL) Director Chan Un Tong look on. – Photo: Tony Wong
