Melco announces closure of Grand Dragon Casino and three Mocha clubs

Melco Resorts and Entertainment announced on Monday 9 June 2025 that it will close its Grand Dragon Casino and three Mocha clubs, with the closures expected to be effective by the end of 2025¹. The announcement came as Macau's 11 satellite casinos end their current operations ahead of a 31 December deadline, following notifications from concessionaires SJM Resorts, Galaxy Entertainment Group and Melco¹.

The three Mocha clubs named by Melco are Mocha Hotel Royal, Mocha Kwong Fat and Mocha Grand Dragon². Mocha Kwong Fat closed in September and Mocha Grand Dragon ceased operations at 23:59 on 24 November³. Mocha Hotel Royal will formally cease operations at 23:59 on 28 December 2025³. Melco said the decision was made "after considering the company's overall development strategy and complying with Macau law," and that staff at the affected venues will be assigned to other Melco properties in Macau². Melco also said it plans to continue operating three Mocha clubs after 2025, namely Mocha Inner Harbour, Mocha New Lisboa and Mocha Golden Dragon, and will apply to the Macau government for the relevant authorizations and approvals².

At a press conference the same day, Secretary for Economy and Finance Tai Kin Ip said 5,600 local employees are on the payrolls of gaming operations owned by third-party investors but reliant on an official gaming concession¹. About 4,800 were hired by Galaxy Entertainment Group, Melco Resorts and Entertainment and SJM Holdings, and the remaining 800 by satellite operators themselves; an additional 400 are non-local employees¹. The government calculated that the Melco closures alone will affect 300 local workers¹. Authorities said they had already established a comprehensive training platform, ready for use as soon as the third quarter of the year¹.

A government review put the number of casino tables and slot machines across the 11 satellite operations at 480 and 270 respectively, with some equipment expected to return to the parent casino¹. Satellite casinos have consistently contributed only a "single-digit percentage" of the city's overall gross gaming revenue, and their borrowings accounted for less than 1 percent of the city's bank credit¹. Authorities introduced regulations in 2022 to reset the stage for satellite casinos; from next year they will only be allowed to charge a management fee¹. Secretary for Administration and Justice Cheong Weng Chon said the management fee "under existing rules is definitely not linked to casino revenue in any way" and concerns overall operations such as cleaning and security costs¹.

SJM also announced on Monday its decision to restructure its nine satellite operations and is looking to acquire the properties of Casino L'Arc Macau and Casino Ponte 16, stating that negotiations have not yet commenced and no binding agreements have been reached¹. Galaxy said it would shutter its Waldo Casino by the deadline, with workers relocated to other properties and given corresponding training¹.

What it means for players

The closures reduce the number of places to play in Macau, particularly smaller satellite casinos and Mocha-style slot clubs that operate electronic table games and slot halls. Melco said slot machines from the closed Mocha venues will be reallocated to its other casinos in Macau with the approval of the DICJ³. Customers holding slot machine cash vouchers (TITO) from Mocha Hotel Royal and Mocha Grand Dragon can continue to use them at Melco properties including Altira Macau, Mocha Inner Harbour, Mocha Golden Dragon and Mocha New Lisboa³. As of the November reporting, Galaxy's Waldo Casino, Melco's Grand Dragon Casino, Kam Pek, L'Arc, Emperor and Royal Golden Dragon had already closed, leaving only Landmark, Fortuna and Kam Pek Paradise among the city's satellite casinos⁴. SJM announced it would acquire Ponte 16 and Arc de Triomphe⁴.

What happens next

The transitional period for satellite casinos expires at the end of 2025, with new operating restrictions taking effect from 1 January 2026². Under those rules, all casinos must be located in real estate owned by the concessionaire, and companies operating satellite casinos on behalf of a concessionaire may no longer sign revenue-sharing agreements with the concessionaire, instead paying it a management fee². Mocha Hotel Royal ceases operations at 23:59 on 28 December 2025³.