In a written inquiry to the government, submitted via the Legislative Assembly, the lawmaker Ron Lam has urged the government to take action regarding the announced closure of local satellite casinos at the end of this year.
Lam noted that if nothing is done to smooth the process, ensure the reintegration of workers, and revitalize the areas currently occupied by these businesses, the impacts on The lawmaker noted that although the deadline is imminent, there is no clear plan for what the satellite casinos intend to do.
He recalled that we are now nine months away from the government-established limit, but no concrete arrangements have been made between concessionaires and satellite casino operators.
The same lawmaker noted that without an explicit agreement by mid-year, most (if not all) of the casinos may be forced to shut down suddenly, which would be devastating to an already weak local economy.
Lam also noted that although the government has claimed that workers will retain their jobs through the current gaming concessionaires, concerns remain. These are fueled by the fact that 10 of the 11 remaining satellite casinos operate under a single operator, making the reassigning of employees to equivalent roles challenging.
If the casinos and their associated hotels close, nearly 10,000 jobs would be at risk, and the impacts would extend to other local businesses and the community in general.
“Small and medium-sized enterprises (SMEs) near satellite casinos depend heavily on casino-driven foot traffic,” Lam said, adding, “A shutdown could cause a sharp drop in customers, hurting retail, dining, and tourism-related businesses.”
Additionally, he warns of the risks related to the financial sector, stating that many satellite casino properties are heavily mortgaged, and the closure could create a wave of new non-performing loans, worsening the health of local banks and destabilizing the financial system.
Due to all the concerns listed, he calls on the government to take proactive measures to prevent significant impacts by setting a clear deadline for stakeholders to submit cooperation agreements.
He also urges the same stakeholders to clarify how the gaming tables freed up by closed casinos will be redistributed.
Lam wants the government to proactively enforce concessionaire responsibility for directly hired workers and support reemployment plans for those indirectly affected. Lastly, the government should assess the financial risks to banks and prepare contingency plans to avoid systemic collapse.
Other lawmakers, including José Pereira Coutinho, Ella Lei, Lei Chan U, and Leong Sun Iok, have recently expressed similar concerns.
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