Four Hong Kong-listed operators of satellite casinos in Macau – each working under the licence of concessionaire SJM Holdings Ltd – reacted on Monday night to news that all such operations in the city will close by the end of this year. A common note was confirmation that each firm only earlier that day had received information on the decision by SJM Holdings of not renewing their respective service agreements.
Macau currently has 11 satellite casinos operating under the 10-year gaming concessions that began in January 2023. Nine of these 11 venues operate under SJM Holdings’ licence; one under Galaxy Entertainment Ltd’s permit; and one under Melco Resorts & Entertainment Ltd’s gaming rights.
Each of the three concessionaires issued statements on Monday afternoon regarding the closure of their respective satellite casinos by year-end. Only Ponte 16 and L’Arc Macau are expected to continue operations beyond 2025. To that end, SJM Holdings announced plans to acquire the respective properties where those two casinos are located, meaning they would no longer be classified as “satellite operations”. The move still requires approval from the Macau government.
SJM Holdings is already a 51-percent joint venture partner – with Hong Kong-listed Success Universe Group Ltd, which holds the remaining 49 percent – in Ponte 16, a property in Macau’s Inner Harbour district. L’Arc Macau, also on the Macau peninsula, is linked to interests represented by Angela Leong On Kei, co-chairman and executive director of SJM Holdings.
In a filing to the Hong Kong bourse on Monday night, Success Universe stated that “no definitive and/or legally binding agreements or contracts in respect of the SJM’s proposed acquisition have been entered into” by the firm. It added that “no detailed terms have been negotiated” regarding a potential deal involving Ponte 16.
Among the satellite casinos operated under SJM Holdings that are to close once the current service agreements expire at the end of 2025 is Casino Emperor Palace, linked to Hong Kong-listed Emperor Entertainment Hotel Ltd. In a filing on Monday night, the latter firm stated it was “actively exploring any suitable business opportunities” following the announcement of the closure of the gaming area. It added: “In the event that any investment is materialised, the company will inform the shareholders.”
Another satellite casino linked to SJM Holdings that will close is Casino Kam Pek Paradise (pictured in a file photo), promoted by Macau-based gaming equipment supplier and casino services firm Paradise Entertainment Ltd. The latter company noted that its casino management services for Kam Pek had generated revenue of HKD718.3 million (US$91.5 million) for full-year 2024, representing 66.2 percent of the group’s total revenue for the period.
“The board expects to report material reduction in the reported revenue and profit attributable to the shareholders of the company since January 1, 2026,” Paradise Entertainment stated in reference to the announced closure of Casino Kam Pek Paradise by year-end.
It added: “Despite this anticipated challenge, the group remains committed to its strategic focus on the development, sale and leasing of electronic gaming equipment and systems in both Macau and overseas markets, where the group has been expanding progressively, and the board believes that this segment holds significant potential for growth in future.”
Paradise Entertainment, which supplies casino equipment under the LT Game brand, also noted that it was “actively enhancing its product offerings and seeking partnerships that will further strengthen its position in the gaming industry.”
Hong Kong-listed hotel and casino services provider Macau Legend Development Ltd also responded to the announced closure of its Casino Legend Palace, which operates as an SJM Holdings satellite. It stated that, according to unaudited financial statements for the four months ended April 30, 2025, earnings before interest, taxation, depreciation and amortisation (EBITDA) from gaming services linked to Casino Legend Palace amounted to approximately “HKD15 million”.
In a filing to the Hong Kong bourse, the company noted that from January 1, 2026, casino gaming concessionaires must either cease operations in third-party owned premises – i.e., satellite casinos – or continue under a management agreement structure with no profit-sharing element. Because of this, Macau Legend “had expected the income associated with gaming business would be reduced even if the service agreement could be renewed; thus has been adjusting its business strategies to focus more on the non-gaming part.”
The company said its resources “would continue to be allocated to optimise the facilities of the Macau Fisherman’s Wharf”, a waterfront complex on the Macau peninsula where Casino Legend Palace is located, “enhancing the exclusive experience” of the area, and “improving its flexibility to host large-scale events”.
Looking ahead, Macau Legend stated it expected “to increase revenues from non-gaming business including hotel, convention and exhibition, food and beverage and leasing of the then available premises in the forthcoming financial year.”
