Gaming Potential satellite casino closures could boost business at Grand Lisboa Palace

The possible closure of the city’s satellite casinos under SJM Holdings’ concession could provide a boost to the company’s flagship resort in Cotai, the Grand Lisboa Palace, according to a report from CBRE Equity Research.

As the city nears the end of its three-year transition period for satellite casinos, concerns over the viability of these establishments have grown.

Satellite casinos, which operate under the license of a major concessionaire but are run by independent third parties, have faced significant changes under Macau’s amended gaming laws.

Since the law came into effect in 2022, satellite casinos have been prohibited from sharing gaming revenue with concessionaires and may only earn a management fee.

The government granted a transition period until the end of 2025 to allow these casinos time to adjust.

However, analysts John DeCree and Max Marsh from CBRE noted that uncertainty remains over how the new operating structure will function and whether satellite casinos will remain financially sustainable in the long run.

In a recent note following SJM Holdings’ latest financial results, CBRE analysts highlighted the potential impact of satellite casino closures.

“Any closures could open the door for SJM to reallocate some of that table capacity—and potentially customers—to Grand Lisboa Palace,” they stated.

If Grand Lisboa Palace succeeds in attracting more visitors, the additional table capacity could help strengthen its mass-market gaming business, the report suggested.

Macau is home to 30 casinos, among which 11 are satellite casinos. Nine of these operate under SJM Holdings’ concession, while the other two are linked to Galaxy Entertainment Group (GEG) and Melco Resorts & Entertainment.

Additionally, seven satellite casinos ceased operations in 2022, primarily due to regulatory shifts and the ongoing impact of the Covid-19 pandemic.

As previously reported, workers are bracing for potential job losses and reduced benefits amid significant industry changes.

Many workers, some with nearly two decades of experience in the gaming sector, fear that these changes will adversely affect their welfare.

Lawmaker Lei Leong Wong recently emphasized the broader implications, noting that the closure of satellite casinos could impact not only employees but also surrounding small and medium-sized enterprises (SMEs).

“Business owners near the satellite casinos are also worried,” Wong said.

Wong urged the government to announce a clear plan to safeguard job opportunities for affected workers and to consider the economic ripple effects on the community.