Galaxy’s President and Rio casinos close; SJM extends Grand Emperor Casino
As Galaxy Entertainment Group (GEG) abruptly closed a pair of satellite casinos yesterday midnight, reports about SJM Resorts, S.A’s attempt to extend Grand Emperor Casino have emerged.
As the clock struck midnight yesterday, the doors of the casinos at Rio Hotel and President Hotel closed, seemingly for good. Both casinos are satellite casinos operated by GEG.
‘Satellite casino’ is non-legal terminology used widely to refer to casinos that are not located in properties owned by any gambling concessionaires.
News of the shutdown only emerged a couple of hours before the closure. It is still unclear why the gambling concessionaire decided to shut down the facilities.
In a statement concerning the closures of the duo of satellite casinos, GEG said that the two casinos “are currently taking inventory,” as well as confirming the closures.
It added that GEG’s employees working at the two “City Clubs” – the company’s reference to satellite casinos – will be redeployed to its other casinos, with all of their employment terms remaining unchanged.
“GEG will also provide them with a series of vocational training programs to assist them in adapting to their new working environment,” the casino licensee said in a statement.
“GEG would like to thank Macau residents, patrons and different sectors of the community for their support [shown] to the Rio Casino and the President Casino over the years,” it went on saying. “As always, GEG remains fully committed to making positive contributions to the Macau’s leisure and tourism industry.”
Serial closures of satellite casinos have been rumored in the past months as the government first submitted a draft on the gaming law review that was understood to be giving the red light to all similar facilities.
First to announce a shutdown was the Grand Emperor Casino, the satellite facility operated by SJM at the Grand Emperor Hotel in Praia Grande.
On April 2, the owner of the venue, the Grand Emperor Hotel and its parent company Hong Kong’s Emperor Group, announced that they would cease the operation of their casino on June 26. The date was set to be the end of the current casino licenses period.
In the statement announcing the shutdown of its casino, Emperor Group cited vagueness in business prospects as a factor in its decision.
The story seems to be turning a brighter new leaf, though, because, according to several local media outlets, SJM would like to continue the operation of the Praia Grande gambling facility at least until the end of the year.
It was cited by media outlets that an indirect subsidiary of the Grand Emperor Hotel had made an agreement with SJM on June 15. The agreement is said to state that the hotel will provide accommodation, catering and other auxiliary services to SJM, while the latter will operate the casino for the former.
It may be understood as both parties trying to work within the new framework set by the updated draft of the Gambling Law review. The updated draft has made proposals to clarify various parties in a casino operation business, such as intermediaries and management companies.
According to the said agreement, the value of the services is not likely to exceed HKD21 million.
Despite the original license cessation on June 26, the Macau government announced in March this year that all licenses would be extended to the end of this year on a by-application basis.
Later, as it updated the draft review of the aforementioned law, the government made adjustments that were understood to open the door to retaining satellite casinos.
All six casino operators in Macau have applied for the validity extension. It has been rumored that the government will sign new agreements to facilitate the temporary extension next week.
Next week will also see the draft review on the gaming law go to the parliament for second reading.
