Rio and President casinos suspend operations

Galaxy Entertainment Group suspended operations at two of its Macau satellite casinos, the Rio and the President, on June 15, 2022, and the Waldo casino has submitted a request to do the same by the end of the month, according to TDM Radio as cited by Macau Business¹. The three casinos operate under Galaxy's City Club brand and employ around 600 people, most of them at the Rio and Waldo¹.

Galaxy announced the suspension on the night of June 15, saying the two City Club venues would stop operating from June 16 for an internal inventory count, and that its staff would be reassigned to other casinos in the group with all employment terms unchanged². Signage went up outside the Rio and President stating that the casino and slot machine areas were closed³. The Rio Hotel's management company, Rio Entertainment Ltd, took out a half-page advertisement in the Chinese-language newspaper Macao Daily criticizing Galaxy for never negotiating a renewal of the cooperation agreement¹.

Macau's six gaming concessions and sub-concessions were due to expire on June 26, 2022, but authorities agreed a six-month extension to allow the gaming law amendment to pass and a new license tender to run¹. Galaxy's contracts with its satellite casinos ran to June 26². The Rio Hotel, a 450-room property in the NAPE area founded in 2006, had previously been listed for sale for MOP2 billion (US$247 million) together with its casino¹. The Rio Hotel Macau Sauna Place stopped operating in May and its employees were dismissed with a severance package¹.

The Rio offered 21 jobs to staff affected by the closure, including front desk supervisor, Chinese restaurant manager, clerk, technician and security roles, with pay ranging from MOP8,000 to MOP15,000, according to Allin News². Galaxy's City Club segment recorded adjusted EBITDA down 20 percent year on year and down 68 percent quarter on quarter to MOP8 million in the first quarter of 2022².

What it means for players

The Rio and President casino floors and slot machine areas are closed, so players who previously gambled there cannot do so³. Galaxy staff at the two venues have been reassigned to other Galaxy properties, which continue to operate². Waldo remains open for now, but its operator has asked to suspend by the end of June, and Allin reported that if talks with Galaxy make no progress it will close on June 26¹. Other satellite casinos, including the Grand Emperor and two at Macau Fisherman's Wharf, will keep operating at least until December 31 under agreements with SJM¹. Under the draft gaming law amendment, satellite casino properties not transferred to a concessionaire could still operate as managing entities under a contract approved by the Chief Executive, but such entities could only charge managing expenses and could not share a percentage or commission of gaming revenue¹. The final version of the amendment was expected to go to a plenary vote no sooner than June 21¹. Details of how the closures affect individual player accounts, chips or outstanding balances at the Rio and President have not been reported.

What happens next

The Waldo casino's request to suspend by the end of June is pending¹. Macau's gaming concessions and sub-concessions were extended by six months beyond the original June 26 expiry¹. The final version of the gaming law amendment was expected to be sent to the plenary for voting no sooner than June 21¹.