Melco Resorts to shutter Grand Dragon Casino and three Mocha Clubs in Macau
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 decision aligns with Macau’s evolving gaming regulations, which are set to impose stricter controls on satellite casinos.
The affected properties include the Grand Dragon Casino, along with Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel. In a press release issued Monday, Melco stated the closures were made “after considering the company’s overall development strategy and in accordance with Macau law.“
Employee and asset reallocation
Melco has assured that employees currently working at these venues will be reassigned to other properties operated by the company within Macau. Similarly, gaming tables and electronic gaming machines from the closing locations will be re-allocated to other Melco casinos or gaming areas across the Special Administrative Region.
Remaining Mocha Clubs
While some venues are closing, Melco plans to continue operating three Mocha Clubs venues beyond 2025: Mocha Inner Harbour, Mocha Hotel Sintra, and Mocha Golden Dragon. The company will apply for the necessary authorisations and approvals from the Macao SAR Government to ensure its ongoing operation.
Adapting to new regulatory landscape
Melco is the first of the three concessionaires currently overseeing satellite casinos in Macau to publicly detail its plans for these venues. The future of satellite casinos has been under scrutiny since the government introduced new restrictions, which will come into full effect on 1 January 2026.
These new regulations mandate that all casinos must be located within immovable properties owned by the concessionaire. Furthermore, companies operating satellite casinos on behalf of concessionaires will no longer be allowed to enter into revenue-share agreements, instead transitioning to a management fee structure. A three-year grace period, allowing stakeholders to prepare for this transition, concludes at the end of the current year.
Currently, Macau is home to 11 satellite casinos. Nine of these operate under the concession of SJM Resorts, while Melco and Galaxy Entertainment Group each oversee one. Melco’s proactive move signals an industry-wide shift as operators adapt to Macau’s tightened regulatory environment.
The shares of Melco Resorts & Entertainment (Nasdaq: MLCO) climbed 4.41 percent to close at $6.15 apiece on Monday, 9 June 2025, after the announcement. The company’s shares have fallen over 11 percent in the past six months, underperforming the Nasdaq Composite index, which has fallen almost 1 percent during the same period.
