As Macau nears the closure of satellite casinos by the end of 2025, Chief Executive Sam Hou Fai said that the impact of their closures on the city’s gross domestic product (GDP) would not be significant, as reported by local media. This is because Macau’s concessionaires will shoulder their responsibility, according to the chief executive.
Sam Hou Fai said the annual gaming revenue from satellite casinos, which was about MOP$10 billion, when weighed against Macau’s robust GDP, the number becomes relatively modest at just 2.5 percent. “Macau’s gross domestic product last year was more than MOP$400 billion and satellite casinos accounted for a small proportion of that, so the impact on GDP should not be significant.” He added, “the government is addressing the issue of satellite casinos to ensure the lawful, healthy and orderly development of Macau’s gaming industry.”
Discussing the reemployment of the displaced employees, chief executive said, “The SAR government has clearly requested that gaming concessionaires properly handle their work arrangements to ensure their continued employment.” The satellite casinos employed around 5,600 local employees of which 4,800 are direct employees of the parent concessionaires. Sam Hou Fai confirmed the government had instructed all six concessionaires to ensure smooth transitions for affected staff. “Gaming concessionaires must fulfil their responsibilities in accordance with the law,” he stressed.
The closures have 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. 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.
The looming significant shift in Macau’s gaming landscape has been 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.