Govt ready to address needs of satellite casino staff: Labour chief
Chan Un Tong, Director of the Labour Affairs Bureau (DSAL), has confirmed to local media that no formal labour disputes involving employees and operators have emerged. In an interview, he emphasised that authorities are keeping a close watch on operational changes within satellite casinos.
This comes just days after satellite casinos resurfaced with concern that gaming concessionaires or the government have not begun discussions about their future. The argument is that delaying discussions about their future puts them at a significant disadvantage as time continues to count down. According to local media, some operators have suggested that the government should not return all gaming tables to concessionaires if satellite casinos shut down. They are asking the government to use the gaming tables as a bargaining chip between concessionaires and authorities.
Small businesses could be hit hard: lawmaker
Another lawmaker, José Pereira Coutinho has warned that closures could hit small businesses hard, creating a domino effect that stretches beyond the casinos. The DSAL director has also assured that relevant government departments are working together on contingency plans. These plans will ensure swift support to affected workers in securing alternative employment. This is in response to many casino employees voicing fears about job loss.
A few weeks ago, the Gaming Inspection and Coordination Bureau (DICJ) said it will “continuously assess” the city’s gaming industry and stay in “close communication” with casino operators and other government departments. This pledge came in response to a recent inquiry about the future of satellite casinos from Macau lawmaker Lei Leong Wong. DICJ acting director Lio Chi Chong stated that this approach aims to “respond to any condition that could affect the good operation of the gaming industry and social stability.” His remarks were included in a written response dated February 28 and made public this week. He also noted that the Labour Affairs Bureau would monitor workers’ labour rights and provide necessary employment support.
Current scenario
Currently, Macau has 11 satellite casinos in operation with approximately 450 gaming tables. Majority of these, which is nine of the total satellite casinos operate under the concession of SJM Holdings. The government has set a cap of 6,000 gaming tables and 12,000 gaming machines through the Chief Executive’s directive. Of the total, SJM was allocated 1,250 tables, Galaxy Entertainment Group 1,000 tables, Melco Resorts 750 tables, Wynn Resorts 570 tables, MGM 750 tables, and Sands China 1,680 tables.
A few weeks ago, Franco Liu, a Macau-based property valuation expert warned the closure of satellite casinos could lead to severe property devaluation and financial instability. Predictions are that some hotel properties could lose more than 60 percent of their value, according to Liu. Hotels with satellite casinos have a history of securing larger loans due to their higher valuations. However, with the looming deadline and closures, Liu has warned that devaluations would render many of these loans unsustainable. This would also greatly impact banks with significant exposure to the sector.
