Macau Legend keen to continue satellite operations but US$152 million loss in FY21 casts doubt

June 29, 2022 Macau Earnings & Filings Industry Updates

Macau Legend Development Ltd says it will explore its options with a view to continuing the management of Macau casinos Legend Palace and Babylon – both located at Macau Fisherman’s Wharf – once current concession contracts expire on 31 December 2022.

This is despite auditors issuing a Disclaimer of Opinion on “Multiple uncertainties” relating to the group’s ability to continue as a going concern, with Macau Legend announcing on Tuesday a loss of HK$1.19 billion (US$152 million) in FY21, narrowed from a loss of HK$1.96 billion (US$250 million) in 2020.

Amendments to the governance of satellite casinos form a key part of Macau’s new gaming law, which was passed by the Legislative Assembly last week, with satellites no longer allowed to participate in revenue share arrangements with concessionaires after a three-year transitional period for existing satellite casinos. A number of satellites have either announced plans to close down or their operations assumed by their related concessionaire.

Macau Legend, which operates its casinos under the license of SJM Resorts, said Tuesday it will “explore various options to continue the provision of management or any other forms of services related to the gaming operation at Babylon Casino and Legend Palace Casino after 31 December 2022 to the extent permitted by relevant laws and regulation of Macau, and will maintain close contact with SJM in this regard.”