Macau’s Chief Executive says concessionaires hold responsibility for satellite casino future
Macau Chief Executive Sam Hou Fai has clarified that the fate of the city’s satellite casinos now lies firmly with the six gaming concessionaires, not the government.
Speaking after delivering the 2025 Policy Address, Sam stressed that the administration has completed its role by enshrining all necessary provisions in the amended gaming law, leaving it up to concessionaires and satellite operators to manage the transition. The law, amended three years ago, mandates that all casinos must be located within properties owned by the concessionaires.
The government had provided a three-year buffer period, set to expire at the end of 2025, to allow time for stakeholders to adjust. Satellite casinos may be converted into wholly owned and operated properties by concessionaires or continue under the management company model. In cases where neither path proves viable, operators may need to exit the gaming industry entirely.
Currently, 11 satellite casinos remain operational. Of these, nine are associated with SJM Holdings, while Galaxy Entertainment Group and Melco Resorts each oversee one. These operate under the current 10-year gaming concession framework introduced in January 2023.
The Chief Executive acknowledged public concern regarding satellite casino staff, stating that the legal framework provides clear guidelines for managing employee transitions. Nonetheless, he maintained that gaming operators must take the lead in implementing appropriate solutions.
External pressures threaten Macau’s economy
Macau’s economy faces increased vulnerability due to shifting global economic conditions, with the city’s leader citing the ongoing US-China trade tensions and weakening renminbi as pressing concerns. The Chief Executive noted that the potential impact on Macau’s core tourism and gaming sectors could be substantial, particularly given the city’s heavy reliance on mainland Chinese visitors.
With gaming tax contributing the bulk of public revenue, any dip in tourist spending power could strain fiscal planning. The weakening yuan may deter spending in Macau, where transactions are conducted in the Hong Kong dollar, potentially rendering the city a less attractive destination.
Sam revealed that Macau’s gross gaming revenue (GGR) in the first quarter of 2025 fell below expectations. The city’s budget was originally built on an estimated monthly GGR of MOP20 billion (€2.2 billion) to support projected annual gaming tax revenue of MOP93.1 billion (€10.3 billion). These funds were expected to underpin MOP115 billion (€12.7 billion) in government expenditure. If the shortfall persists, Macau may be forced to revise its fiscal plan.
Monitoring of concessionaire investment obligations
Earlier this month, the Macau government announced a midterm review of casino operators mandated non-gaming investments, as part of an ongoing effort to diversify the city’s economy. According to local media reports, these commitments are part of broader efforts to diversify Macau’s economic base and reduce reliance on gaming.
