The integrated resort cluster located on the Macau peninsula could claim the gross gaming revenue share previously attributed to SJM’s satellite casinos when they close down at the end of the year, according to investment bank Morgan Stanley.
As reported by IAG, all 11 of Macau’s satellite casinos will cease operations by the end of this year, although SJM – which is connected to nine of those 11 – has flagged the potential acquisition of Ponte 16 and L’Arc, making them self-owned casinos.
However, Morgan Stanley said in a note that the company could lose some or all of its satellite GGR to integrated resorts located on the peninsula, including Wynn Macau, MGM Macau and Galaxy’s StarWorld. SJM also holds an IR presence in the area via Grand Lisboa.
SJM’s satellites represented around 5% of Macau-wide GGR in the March 2025 quarter at around HK$2.8 billion (US$350 million).
Despite lingering uncertainty around how the satellite closures will impact the industry, Morgan Stanley analysts said it will provide a “cleaner structure for the industry”, albeit with potential operating challenges for SJM given the prospect of excess staff and the departures of the company’s Chief Operating Officer, Ben Toh, and Chief Gaming Officer Damian Quayle.
Galaxy, which is shuttering its only satellite casino Waldo, and Melco, which is closing Grand Dragon, should see minimal EBITDA impact from the closures, Morgan Stanley said.
