Macao Daily News reported on March 24 that seven satellite casinos in Macau are planning to stop operations by mid-year, according to Macau Business1. The report attributed the planned closures to the tightening of visa applications to Macau, a lack of cash flow and the negative impact of repeated pandemic outbreaks1. Four of the casinos set to close were said to be linked to Chan Meng Kam's Golden Dragon Group1.
Satellite casinos are gaming establishments technically operated by concessionaires or sub-concessionaires but owned and promoted by third parties who are also involved in day-to-day casino management1. Macau had 18 operational satellite casinos among a total of 40 casinos in the territory at the time, with 14 running under the license of SJM Holdings Ltd and the other four linked to Galaxy Entertainment Group and Melco Resorts and Entertainment Ltd1.
The reported plans came as Macau authorities advanced a new law proposal to regulate junket operators, their sub-agents, managing entities and their relation to gaming concessionaires1. The Macau SAR Executive Council advanced the proposal on March 31, and the full text was published by the legislative body on April 131. Under the draft bill, managing entities responsible for satellite casino properties would only be allowed to establish business contracts with one gaming concessionaire1. They would also be barred from managing financial activities related to casinos and could only charge management expenses to the concessionaire, with any sharing of gaming income prohibited1. Any contract between the gaming operator and a concessionaire would have to be submitted to the Macau SAR Chief Executive for approval1.
The draft bill set criminal responsibility for managing entities where a concessionaire, junket promoter or sub-agent illegally accepts cash or other deposits "under this name," an infraction carrying a prison sentence of between two and five years1. Fines for managing entities were set at MOP100,000 to MOP1.5 million, and crimes committed by collective entities could also be punishable by dissolution1. Under the draft bill, after an initial three-year transition period, casino properties owned by independent investors would be either permanently closed or acquired by the six prospective concessionaires1.
Separately, Emperor Entertainment Hotel Limited announced that the casino at its Grand Emperor Hotel would cease operations because it would not renew its service agreement with concessionaire SJM, which was set to expire on June 261.
What it means for players
The reported closures affect where players in Macau can gamble, not whether gambling is legal there. Satellite casinos are third-party promoted venues, so a closure removes a specific property from the floor rather than changing the rules of play. The draft bill's ban on managing entities sharing gaming income, and its requirement that each managing entity contract with only one concessionaire, would change how those venues are run if they stay open1. The bill also sets prison terms of two to five years for managing entities where illegal acceptance of cash or deposits occurs, and fines of MOP100,000 to MOP1.5 million1. For visitors, the practical effect is fewer venues to choose from in the satellite segment, with the 14 SJM-linked and four Galaxy and Melco-linked properties making up the affected group1. Details of which specific casinos would close, and on what dates, have not been reported beyond the Golden Dragon Group link1.
What happens next
Under the draft bill, casino properties owned by independent investors would be permanently closed or acquired by the six prospective concessionaires after an initial three-year transition period1. The bill was advanced by the Macau SAR Executive Council on March 31 and published in full by the legislative body on April 131. No further timetable for the reported closures has been reported1.
