Macau’s Secretary for Administration and Justice, André Cheong Weng Chon (pictured in a file photo), said on Monday that while it was a “commercial decision” for SJM Holdings Ltd as to whether the Macau casino company wanted to acquire “100 percent of the property rights” at two of its current nine satellite casinos, it would still be “upon our approval” for the firm to continue gaming there on a non-satellite basis.
The official was speaking at a Monday press briefing on what will happen once the three-year grace period for Macau satellite casinos expires at year-end.
The two Macau properties that SJM Resorts has flagged it will acquire, are Ponte 16, a casino hotel in the Inner Harbour district, and L’Arc Macau, in downtown Macau.
The other SJM Resorts satellites – and that the company has not pledged to acquire – are: Casino Grandview; Casino Legend Palace; Casino Fortuna; Casino Landmark; Casino Emperor Palace; Casino Kam Pek Paradise; and Casino Casa Real.
Paradise Entertainment Ltd, the Hong Kong-listed partner at Casino Kam Pek Paradise, had halted trading in its shares at 2.27pm on Monday.
SJM Resorts – as well as Melco Resorts & Entertainment Ltd, which has one satellite named Casino Grand Dragon and which will close; and Galaxy Entertainment Group Ltd, that also has a single satellite named Casino Waldo, and that will shutter – had respectively issued statements on Monday about the satellites’ futures.
“After this year-end, all satellites will be gone,” noted Mr Cheong at that afternoon’s briefing, referring to all 11 such venues currently operating.
He also noted: “As to the question of whether the satellite casinos’ closures will impose some impact on Macau government’s fiscal income or the Macau SAR’s gaming sector, we believe that the three casino concessionaires have made their comprehensive commercial decision.”
He added: “On the overall income of the gaming sector, it won’t constitute an actual negative impact.
“Secondly, we feel that for the regulated development of the sector, this is positive.”
Satellite workers, Mocha Clubs
Melco Resorts had also said that three of its Mocha Clubs slot parlours that are not within company premises, would close by year-end.
Mr Cheong observed: “The other three [Mocha Clubs] will negotiate with their [existing] premises to continue to operate, and as a Law 7/2022 requirement,” will have to “employ a management company” for that purpose.
That was a reference to a Macau law that amends the “Legal Framework for the Operations of Casino Games of Fortune”, including the rules on satellites.
Ng Wai Han, director of the city’s casino regulator, the Gaming Inspection and Coordination Bureau, noted at Monday’s briefing: “According to our statistics, the 11 satellites have [in total] 480 gaming tables, and 270 slot machines.”
The figure was understood to exclude Mocha Clubs’ inventory.
The gaming inventory currently housed in satellite casino premises would revert to the relevant casino concessionaire, Mr Cheong noted to the press.
Regarding commercial activities near satellites that might be impacted by the upcoming closures, Tai Kin Ip, Macau’s Secretary for Economy and Finance, told in the briefing: “From our recent inspections, there are 320 shops near satellites. We have classified them according to their type and client sources.
“About half of them will suffer from direct impact,” stated Mr Tai, adding they comprised “pawnshops, jewellery, tobacco, tea, and mobile phone [shops] and eateries.”
The secretary said the city’s government would provide assistance to these impacted shops, and help the operators “transition” to other types of business.
Mr Tai said that – regarding workers affected by satellite closures – the government would provide “comprehensive” assistance, including job matching and counselling.
Mr Tai also said that the government had calculated “5,600” staff – all local residents – would be affected, of which “4,800” were under the respective concessionaires, and 800 employed by the satellite-venue owners.
A further 400 non-resident workers were employed in satellites.
Mr Tai added that the Mocha Clubs slot halls have 300 local residents as staff, and 50 non-resident workers.
The Macau concessionaires have been requested by the Macau government to absorb into their core business, the relevant workers they had previously assigned to the satellites, once those satellites shut down, said Secretary Tai.
