Macau satellite casinos' closure a 'negative surprise': analysts
As Macau nears the closure of satellite casinos by the end of 2025, the move has been described as a “negative surprise” by industry analysts. The closures involve three of Macau’s six major concessionaires—SJM Holdings, Melco Resorts, and Galaxy Entertainment—and is set to reshape the city’s gaming landscape.
Macau operators to shut satellite casinos
The restructuring follows revisions to Macau’s gaming laws enacted in 2022, under which all satellite casinos must either be owned directly by the licenced operator or operate under non-profit-sharing agreements. The deadline for compliance is 31 December 2025. Complying with the changes, Macau gaming operators, including Melco Resorts, Galaxy Entertainment and SJM Holdings, have announced the closures of several satellite casinos by the end of 2025. In separate announcements, the three concessionaires have confirmed the closures of 11 satellite casinos operating under them.
CLSA analysts Jeffrey Kiang and Leo Pan called this a “structural shift,” warning that it leaves Paradise Entertainment with an uncertain future as its casino management business is effectively dismantled. While some closures were expected, analysts were surprised to see high-performing properties on the list. This raised questions about the internal strategic priorities of the concessionaires.
Which properties are set for closures?
Among the properties that are set for closures are Casino Casa Real, Casino Emperor Palace, Casino Fortuna, Casino Grandview, Casino Landmark, and Casino Legend Palace—all operated under SJM. However, the company is exploring the possibility of acquiring and directly managing Casino L’Arc Macau and Casino Ponte 16. However, SJM has confirmed its intention to acquire the physical properties housing Casino L’Arc Macau and Casino Ponte 16.
Citing the company’s filing with the Hong Kong Stock Exchange (HKEX), Kiang noted, ‘SJM plans to negotiate potentially acquiring the remaining two, believing continuing operations to be beneficial to the Group—although no terms or binding agreement have been reached or signed.’
Melco Resorts & Entertainment has confirmed it will cease operations at its only satellite casino, Grand Dragon Casino, and three of its Mocha Clubs slot machine venues by the end of 2025. The affected properties include the Grand Dragon Casino, along with Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel. Galaxy Entertainment Group also said it will be closing the Waldo Casino, citing “commercial considerations.”
In terms of impact of closures, Kiang said it is likely to be ‘broadly neutral.’ However, the analyst noted that, ‘Galaxy and Melco should see a more immediate uplift in table yield.’ This is because gaming tables and electronic machines will be reallocated to core properties. For instance, SJM is expected to shift tables to its flagship Grand Lisboa Palace. Kiang wrote, ‘We expect SJM’s plans to relocate tables from these satellite casinos to Grand Lisboa Palace will accelerate the ramp-up; but it will take time.’
Government pledges support
The looming significant shift in Macau’s gaming landscape is accompanied by strong assurances from the government and concessionaires regarding the employment of local staff. At a press conference held on 9 June, Macau officials confirmed they had urged the three gaming concessionaires to guarantee the continued employment of all local staff currently working at the 11 satellite casinos and the three Mocha Clubs slated for closure. In response, the concessionaires have pledged to reallocate all affected satellite casino employees to their own properties.
