Macau Gaming Operators Eye Regulatory Adjustments for Satellite Casinos Beyond 2025

Macau’s gaming operators are bracing for potential regulatory adjustments regarding satellite casinos in 2025. According to discussions with Bank of America, some operators anticipate that the recently introduced “once-a-week” visa policy for Zhuhai residents visiting Macau could eventually extend to other Mainland cities, offering support for satellite casinos to remain operational beyond the current regulatory plan. The names of the operators were not disclosed.

The existing regulatory framework allows satellite casinos to share gaming revenue with concessionaires until the end of 2025. Afterward, operators may be required to transition into management companies. Under this arrangement, they would no longer share gaming revenue and would instead receive a management fee. Concerns have been raised about whether such a model would remain profitable, given that concessionaires would bear the operational costs while operators would depend solely on the management fees.

The new visa policies, including the “once-a-week” travel pass for Zhuhai residents and an unlimited travel visa for Hengqin residents, are expected to come into effect in 2025. These policies grant nearly 3 million residents from neighboring areas the ability to make frequent visits to Macau, which could potentially bolster the city’s satellite casinos.

Zhuhai’s importance as a source of Macau tourism has been evident in 2024, with 2.8 million visitors recorded as of October, marking a 46 percent year-on-year increase. This growth has surpassed Macau’s overall visitation increase of 28 percent during the same period. Zhuhai visitors account for 26 percent of Macau’s visitors from Guangdong Province and 14 percent of all visitors from mainland China. However, the majority of these visitors (77 percent) are day-trippers, whose economic contribution to Macau’s hospitality sector remains limited. While day-trippers now constitute 4.7 percent of overall overnight visitation—a slight rise from 3.9 percent last year—the share of overnight stays remains relatively small.

The fate of satellite casinos continues to be a point of contention. During a Legislative Assembly session, legislator Leong Sun Iok raised concerns about the three-year transition period for satellite casinos, which is set to expire at the end of 2025. He highlighted the uncertainty facing over 10,000 employees linked to these casinos.

Responding to these concerns, Secretary for Economy and Finance Lei Wai Nong emphasized that satellite casinos operate under the licenses of concessionaires, who are responsible for their employees. He also noted that employment matters must comply with existing legal regulations.

Macau currently hosts 30 casinos, 11 of which are satellite casinos. Nine operate under SJM’s license, while Galaxy Entertainment and Melco oversee the remaining two. In 2022, seven satellite casinos closed due to challenges posed by the new gaming law and the economic impact of the COVID-19 pandemic.

Despite the looming transition deadline, Macau authorities have not yet initiated formal discussions with operators about the future of satellite casinos. Jay Chun, co-chairman and managing director of Paradise Entertainment, which operates Casino Kam Pek under SJM Holdings’ license, expressed hope that talks with the government would begin “soon.”

As regulatory uncertainties persist, operators and industry stakeholders remain watchful, awaiting clarity on the future of satellite casinos in Macau’s dynamic gaming landscape.

By fLEXI tEAM