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Macau Gaming Operators Close Satellite Casinos Amid Regulatory Changes

Macau gaming operators Melco Resorts, Galaxy Entertainment, and SJM Holdings have announced the closure of several satellite casinos by the end of 2025. This move comes as a result of changes in Macau’s gaming laws and the operators’ strategic decisions.

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Among the closures, Melco Resorts & Entertainment will be shutting down Grand Dragon Casino and three slot lounges under the Mocha Club brand. The company stated that these closures align with its overall development strategy and comply with Macau regulations.

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Galaxy Entertainment Group also confirmed the closure of Waldo Casino due to commercial considerations. The company assured that affected employees would be relocated to other properties within Macau to mitigate the impact of the closures.

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SJM Holdings, on the other hand, is implementing the most significant changes by closing seven out of its nine satellite casinos. The company plans to acquire the remaining two – Ponte 16 and L’Arc Macau – and transition them to a directly managed model to enhance long-term competitiveness.

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According to industry experts, the recent amendments to Macau’s gaming laws require satellites to shift from a profit-sharing model to direct ownership by licensees. This transition will see satellites generating revenue through management fees rather than shared profits.

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Traditionally, satellites have been responsible for operational costs, including salaries, while concessionaires paid gaming taxes based on gross revenue. The adjustment in the business model aims to streamline operations and enhance the overall efficiency of the gaming industry in Macau.

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With up to 6,000 jobs at stake across 11 satellite casinos, the Macau Labour Affairs Bureau has pledged to closely monitor the situation to ensure affected employees are offered job opportunities within the operators’ portfolio of properties. This proactive approach aims to minimize the impact on the local workforce.

As the gaming landscape in Macau continues to evolve, industry analysts anticipate that satellites will remain a crucial component of the gaming mix. Adjustments in management fees and operational structures are expected to adapt to changing market dynamics and regulatory requirements.

Overall, the closure of satellite casinos in Macau reflects a strategic realignment within the gaming sector to optimize operational efficiency and comply with regulatory changes. The industry’s response to these closures will shape the future landscape of gaming in Macau and set new precedents for operational models in the region.

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