In June, Macau Legend Development Ltd. ceased to operate gaming at its Macau Fisherman’s Wharf complex in the city’s Outer Harbor area. According to Melinda Chan, president of Macau Fisherman’s Wharf International Investment Ltd. and chief executive of Macau Legend, the firm continues to run non-gaming operations at the site, but gaming is the province of Big 6 casino concessionaire SJM Holdings Ltd.
SJM, which already held the license for the property’s two satellite casinos, Legend Palace and Babylon, has now taken full control of both operations.
“SJM is responsible for operating Legend Palace Casino and Babylon Casino till December 31 of this year,” Chan told GGRAsia.
The government of Macau recently extended the current concession terms by six months, giving lawmakers and operators alike more time to complete the retender process. All six concessionaires are vying for new, 10-year terms of operation in the special administrative region (SAR), historically the world’s most important gaming market. Macau has been struggling to bounce back in the post-Covid era, but has been hampered by Beijing’s strict zero-Covid policy, which clamps down on business and closes borders when new cases emerge.
According to GGRAsia, SJM took full control of both satellite operations starting on June 27. Also at that time, SJM announced that it would take full control of another satellite casino at the Grand Emperor Hotel in downtown Macau after the property’s promoter said it planned to end gaming operations. The casino had been run until then under a service agreement with SJM Holdings.
Macau’s amended gaming law requires that the city’s satellite casino promoters assume the role of management companies that will derive no revenue from gaming operations. It also approved a three-year grace period for the switch to a management-company framework.
In related news, a unit of Macau Legend Development has disposed of bank bonds worth HKD200 million (US$25.5 million) on the open market, taking in about the same amount. In a filing to the Hong Kong Stock Exchange, the company said the move was “in light of the market situation,” i.e., the depressed state of tourism to Macau amid repeated outbreaks of Covid-19 in the city itself, as well as in Mainland China.
Macau Legend stated, “The board considers that the disposal of the bonds provides the company with a good opportunity… to strengthen the cash flow of the group and to better structure its asset portfolio.” In late June, Macau Legend reported a full-year 2021 net loss of just above HKD1.19 billion (US$151.6 million), down 39.1 percent from the previous year.
