Macau’s Chief Executive, Sam Hou Fai (pictured), says the local government expects the city’s gaming operators to coordinate adequately with their partners at local satellite casinos regarding the future of such venues after the end of the year.
Satellite casinos operate under the gaming licence of a Macau concessionaire, but are usually promoted by third parties.
Mr Sam said on Thursday, according to a government press release, that the three-year transition period in which satellite casinos could operate under an old framework would terminate by the end of this year. “Relevant gaming enterprises were believed to have coordinated with satellite casino operators to ensure a smooth transition,” the release added, indirectly quoting Mr Sam.
Under a new gaming regulatory framework – coinciding with the current 10-year concessions of the six Macau operators – third-party investors in satellite casinos will only be permitted to earn a “management fee” via a ‘management company’ from 2026.
Macau has 11 satellite casinos that continued to operate under the new 10-year gaming concessions that started in January 2023. There had been 18 satellite casinos in the market as of June-end 2022, so venue-wise the sector has shrunk by circa 40 percent.
Nine of the 11 satellite casinos are under SJM Holdings Ltd’s licence, one is under Galaxy Entertainment Group Ltd’s permit, and one is under Melco Resorts & Entertainment Ltd’s gaming rights.
Industry insiders have commented that details regarding the new operating model for satellite casinos post 2025 remain unclear and that further government guidance is needed. Some have raised doubts about how financially attractive the new model could be for third-party investors.
During a press conference on Thursday, Francis Lui Yiu Tung, chairman of Galaxy Entertainment, commented on the firm’s sole satellite casino operation, Waldo, in the Macau peninsula.
Mr Lui said the future of Waldo remained undecided. “We are still talking to our partner,” he stated. “We probably also need to hear the government’s decision first.”
Several Macau legislators have raised concerns about the potential widespread closure of Macau’s existing satellite casinos at the end of the year, particularly regarding how such closures could lead to a surge in unemployment and impact the local economy in the districts where the satellite casinos are located.
Addressing the issue in his comments on Thursday, Chief Executive Mr Sam noted that gaming employees of satellite casinos were hired by the respective concessionaires providing their licence to the operation. He added that the concessionaires “had the responsibility to make appropriate arrangements for these employees,” according to the government press release.
