Macau’s satellite casino operators may shift to management companies, which are no longer allowed to share gaming revenue under current regulations.
With discussions between the Macau government and gaming concessionaires having yet to take place, the future of satellite casinos in Macau point towards an unclear future.
The three-year transitional grace period under the new gaming law is coming to an end in thirteen months. Given the current circumstances, the operators of Macau's satellite casinos might have to switch to
management-only businesses, which will no longer be permitted to share gaming revenue.
Jay Chun, co-chairman and managing director of Paradise Entertainment, said he hoped that negotiations would start “soon,” according to a report from the Macau News Agency. Paradise Entertainment runs Casino
Kam Pek on the Macau peninsula under the gaming license of SJM Holdings.
However, Chun pointed out that because of the change in administration, talks will probably only start once Ho Iat Seng is replaced as Chief Executive on December 20 by Sam Hou Fai.
In a written inquiry to the Macau government last month, lawmaker José Pereira Coutinho expressed concerns about the future of satellite casinos and the possibility of closures, which might have an impact on the employment of around 10,000 local employees.
Nine of the 30 casinos in Macau, including 11 satellite casinos, are currently run under SJM's license. The new gaming regulations and the negative consequences of the COVID-19 outbreak caused seven satellite
casinos to collapse in 2022.
It is Chun's hope that satellite casinos would stay open after the grace period. "We have many employees, and no one wishes for these workers to abruptly lose their jobs," he said as he underlined the significance of job protection.
Additionally, he noted that the computation of management fees is currently the main focus. Chun stated that the specifics of upcoming talks are still unknown because every satellite location has different
circumstances.
Sam Hou Fai, the current Chief Executive, met with the Macao Gaming Practitioners Volunteers Association and the Macao Gaming Industry Employees Home in September of this year.
The potential impact on local employment caused by the prospective closures of satellite casinos was a source of concern for industry representatives.
The representatives demanded that gaming workers' employment rights be upheld and emphasized the importance of paid training for the long-term viability of the sector. They advised that workers be given
enough assistance to adjust to the new environment.
Read related article: Macau Forecasts $29.7 Billion in Gaming Revenue for 2025
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