Landmark Casino, operating under SJM license
A gaming operator is reportedly planning to increase its revenue shares from satellite casinos by 5%, according to media reports, amid the public tender for a new gaming license which closes September 14.
This means the current 45% profit share will rise to 50%, a challenging figure given the turmoil the gaming sector is facing.
According to Allin Media, some satellite casino operators received a new cooperation plan from SJM Holdings Ltd and hope to increase their share to 50%.
Satellite casinos reportedly need to the sign the document before September 14.
According to data from the Gaming Inspection and Coordination Bureau (DICJ), 19 satellite casinos are operating under the SJM license.
Back in May, the gaming operator’s shares rose to as much as 9.7%, after the government reversed its decision on the gaming law amendment that all casinos would mandatorily be in venues owned by the concessionaires.
Meanwhile, insiders from satellite casino operators told Macau Daily News that the plan is “unreasonable.” Since the pandemic, all the satellite casinos have been in the red, and many casinos are repaying bank debt. According to these sources, if the gaming concessionaires raise their gaming revenue share, the satellite casinos will find it difficult to survive given the pandemic and economic slowdown and may be required to cease operations.
Therefore, some suggested that the government clarify whether satellite casinos will have the right to change the cooperating gaming concessionaires after submitting a bid for the new gaming license, as cited in the report.
Gaming industry insiders, according to the report, hopes the government will allow satellite casinos to change their cooperating gaming concessionaires during the three-year transition period to avoid business closure, which would result in some casino employees losing their jobs.
Such employees would find it challenging to find other jobs because most are middle-aged workers.
They also indicated that many satellite casino operators felt disappointed and have already decided to leave, as they can only continue to operate satellite casinos as a management company after the three-year grace period under the new legislation. Staff reporter
