Jay Chun, chairman of Paradise Entertainment Ltd., says he’s concerned about the impact to the Macau economy if some satellite casinos are forced to close.
As Paradise released its 2021 financial results, Chun said the closures, called for by a gaming law amendment now under review by the Legislative Assembly, “will significantly affect the operation of satellite casinos,” which are important to local business and employment.
Paradise itself, as the service provider of Casino Kam Pek Paradise, “shall be affected by the enactment of the draft bill,” he said. “The group is still waiting for further details of relevant provisions of the draft bill to be announced and confirmed and will assess its impact on the group’s operations. That said, it has no doubt that satellite casinos in Macau have made significant contribution to Macau’s economic development and job creation in the past decades.
“The group has a good reputation as a casino management service provider focusing on mass market patrons for satellite casinos, and has a strong foothold on this aspect in the gaming industry,” he continued.
“The group has a strong will of continuing to provide efficient casino management services and will stay attentive to the development and identification of cooperation opportunities in order to contribute to the Macau gaming industry within the ambit of the new laws.”
According to Inside Asian Gaming, the Macau Gaming Equipment Manufacturers Association (MGEMA)—which represents gaming and technology suppliers and is chaired by Chun—last year called for legal status for satellite casinos. The group said the SAR’s 18 satellites collectively generate more than MOP$50 billion (US$6.2 billion) per year and employ around 15 percent of local gaming workers.
Under current proposed amendments to the gaming law, the satellites would be required to “operate games of chance in casinos in a location where (the concessionaire) holds ownership of the real estate.” The concessionaires and satellites would have three years to achieve this; IAG recently reported that the window is expected to start from early January 2023.
Meanwhile, four satellite casinos operated by former Macau legislator Chan Meng Kam’s Golden Dragon Group are said to be among seven satellites planning to close their doors this year ahead of the expected amendments. They include Casino Golden Dragon, Casino Royal Dragon and Casino Million Dragon, all operating under the license of SJM Resorts, and Grand Dragon Casino, which operates under the license of Melco Resorts. Three other casinos said to be closing operate under the Galaxy Entertainment Group license: Casino Waldo, Rio and President Casino. Other satellites may follow in the coming months.
According to Macau Business, “gaming industry insiders” said some satellite casinos are “hopeless towards the future” due to the proposed amendment as well as the tightening of visa applications to Macau.
Macau “used to be the gaming mecca in Asia, with VIP gaming as a major source of gross gaming revenue,” said a source linked to Macau casino junket investor Alvin Chau, now jailed for illegally promoting gambling on the Chinese mainland. Last month, Chau’s Suncity Group Holdings noted that “the reliance on VIP business (in Macau) has already gone.”
