Macau satellite Casino Kam Pek Paradise should be able to transition to a new business model by the end of the year as required by the city’s revised gaming legal framework, said Jay Chun (pictured), chairman of Kam Pek’s backer, Paradise Entertainment Ltd, in Tuesday comments to the media.
But he added details were yet to be discussed with the downtown casino’s gaming licence partner, Macau concessionaire SJM Holdings Ltd.
Following a three-year grace period for Macau satellites, as of year-end, they will not be permitted to share gaming revenue with the Macau concessionaires that control their respective licences.
Instead, the satellites are required from 2026 to swap to a ‘management company’ model, receiving a ‘management fee’ for such services.
Mr Chun made the remarks on the sidelines of a company event on Tuesday attended by GGRAsia. Paradise Entertainment’s unit LT Game Ltd opened that day a local facility for assembly of its products.
“Of course, to continue managing a satellite casino is our wish,” stated Mr Chun. He added the relevant gaming law framework was “clear… we cannot share gaming revenue [with a casino concessionaire partner] anymore.”
The businessman further observed: “Regarding how to define the management fee, we need to discuss that with our concessionaire [partner].
“If that fee can be decided in such a way that it could sufficiently cover our expenses…. we do hope that they [our satellite casino workers] can stay employed the way they are.”
The Paradise Entertainment boss said currently there were in aggregate about “400 workers” at Casino Kam Pek Paradise that his firm directly employs, of which 300 are locals.
Revenue from Paradise Entertainment’s casino operations stood at HKD718.3 million (US$92.6 million) in full-year 2024, up 21.4 percent from a year ago, according to the firm’s full-year results lodged with the Hong Kong bourse late last month.
The casino operations segment accounted for about 66.2 percent of Paradise Entertainment’s overall revenue of HKD1.08 billion in full-year 2024.
As at December 31 of 2024, there were 20 traditional gaming tables in operation at Casino Kam Pek Paradise. In addition, the venue hosted 10 live multi-game (LMG) gaming tables, and 951 LMG terminals, as well as 94 slot machines and electronic table game (ETG) machines.
LT Game specialises in live multi-game product in the Macau market. For Paradise Entertainment to be able to continue managing Kam Pek would give the company a solid platform for market “testing” of its gaming machine products, Mr Chun also remarked.
Macau’s Chief Executive, Sam Hou Fai, said in a Monday media briefing after the local government’s Policy Address for Fiscal Year 2025, that the future of Macau satellites would be a matter for the concessionaires holding the actual gaming licences.
Mr Chun noted: “The government will not interfere in commercial discussions,” concerning that.
But he noted that any guidance on the setting of the management fee should be communicated between the government and the casino concessionaires.
He added: “But of course, for us, the sooner we have it discussed, the better – so that every party will have enough time to consider things.”
