Last of Macau satellite casinos to close on 30 December

On 30 December, the last of Macau’s satellite casinos will close for good. Casino Landmark at the New Orient Landmark Hotel will become history at 11:59pm next Tuesday.

The closure will end a longstanding business model in the world’s top casino market. Satellites have been part of the industry mix since the early 2000s, when the government ended Stanley Ho’s casino monopoly and welcomed international operators.

Satellites were managed by third-party operators that piggybacked on the licences of the city’s casino concessionaires. In 2022, when the initial 20-year concessions expired, the government amended its gaming laws. Among other changes, it gave satellites three years to shift from a profit-sharing model to a structure in which they are directly owned by licensees. SJM opted to close seven of its nine satellites, including the Landmark. It plans to acquire two others under the directly managed model.

Satellite employees shift to other properties

Only three of the Big 6 concessionaires – Galaxy, Melco and SJM – were associated with satellites. All agreed to relocate satellite workers to their larger operations in the city; the Labour Affairs Bureau pledged to “ensure that the rights and interests of the employees are fully guaranteed”.

In a statement, SJM advised Landmark customers with unredeemed chips, deposits or cash rebates to visit other SJM Resorts in Macau starting 31 December.

Analysts split on impact of closures

In June, when concessionaires announced they would close nine of 11 satellite casinos, analyst Ben Lee called it “the end of an era”. In an interview with Macao News, Lee compared satellites to corner pubs that serve the locals crowd. He expressed concern about the drop in foot traffic in those neighbourhoods and the consequences for other small businesses.

In comments to Macau Business, gaming law expert António Lobo Vilela took the larger view. He predicted that as workers and gaming machines move to other venues, the industry overall will not be negatively affected. “I don’t believe the closure will have or could have a significant impact on final gaming gross revenue results,” he said.

In a December interview with GGB Magazine, Professor Anthony Wong, of the Department of Integrated Resort and Tourism Management at the University of Macau, supported the city’s long-term plan to emphasise non-gaming attractions and diversify the local economy. But he took issue with actions that undermine the gaming industry.

“What the government is doing now is depressing gaming while finding ways to diversify,” Wong said. “The government should diversify first and see if the diversification initiatives work or not before depressing the gaming sector” – and that includes closing the satellites.

Marjorie Preston

Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.