Macau legislator Lei Leong Wong has urged the government to act quickly to resolve the future of the city’s satellite casinos to ensure a smooth transition to the new management fee operational structure that will come into place in 2026.
According to the new Gaming Law, a three-year transition period for the operators of satellite casinos will end at the end of 2025, after which they will no longer be allowed to engage in revenue share agreements with concessionaires and will instead only be permitted to receive a fixed management fee.
As this year is the last year of the transitional period, some satellite casino operators are worried that the management fee will not be able to cover their operating expenses, thus leading to the closure of the satellite casinos in question.
In a recent question to the Government, legislator Lei Leong Wong expressed concern about this issue, stating that many employees of satellite casinos are worried about their employment if the operators and their concessionaire fail to reach a consensus on management fees.
“Satellite casinos have supported many jobs in Macau in the past and have played a positive role in attracting tourists, boosting gaming and community economy, and have played an important role in the operation of neighboring micro, small and medium-sized enterprises (SMEs), especially those in the food and beverage and retail sectors,” he said.
Lei suggested that the Macau SAR Government should take the initiative to coordinate and facilitate the determination of management fees between the concessionaire and satellite casino operators as early as possible, so as to “facilitate the smooth transition of the satellite casinos to safeguard the employment of employees and the stability of the community’s economy”.
There are currently 11 satellite casinos in Macau, nine of which operate under the concession of SJM Resorts, one under Galaxy Entertainment Group and one under Melco Resorts. Employees include those assigned by the concessionaire and those employed by the satellite casinos themselves.
