Macau’s SJM Holdings is expected to retain at least half of the market share from its eight shuttered satellite casinos, with management citing an improved position in the December quarter as compared with Q3, according to ratings agency Fitch.
In commentary published Monday following news that Hong Kong-listed SJM Holdings has proposed to issue new notes to cover indebtedness, Fitch noted that SJM has completed the reallocation of around 458 gaming tables and more than 4,000 staff from its closed satellite to self-owned casinos, including the newly acquired Casino L’Arc Macau and additional gaming floor area at Casino Lisboa.
In doing so, it cited recent comments by SJM management to analysts in which the company outlined an improved ability to retain satellite market share as of 4Q25 following a sharp decline in 3Q25, mainly due to the hiring of marketing personnel and agreements with satellite operators.
SJM had operated nine of the 11 satellite casinos in operation at the start of 2025, with 10 of those satellites having now closed down. The other, L’Arc, was wholly-acquired by SJM in late December.
“The impact [of satellite closures] on SJM Holdings’ credit profile will depend on its ability to recapture the market share of the outgoing satellite casinos,” Fitch said Monday.
“In addition to retaining L’Arc’s existing business, Fitch’s base case assumes that SJM will retain half of the outgoing satellite casinos’ market share by utilizing the tables reallocated to its self-owned properties, given their proximity and similar positioning. These tables should generate higher margins than the previous satellite operations, leading to EBITDA accretion.”
Ahead of 4Q25 and FY25 results season, Fitch noted that SJM’s total GGR declined by 5% year-on-year in 3Q25, with 1% growth from self-owned casinos offset by a 15% drop from satellite casinos. However, the full impact of satellite closures and the reallocation of tables to self-owned properties will likely not become visible until well into 2026.
