"Universe Success aiding in revamp of SJM Holdings' satellite casinos"
In the vibrant city of Macau, the end of an era is approaching as the government enforces the closure of traditional satellite casino operations by 31 December 2025. This decision, which will result in the closure of 9 to 11 satellite casinos, will impact approximately 5,600 workers across these venues.
Key changes and impacts include:
Closure of satellite casinos
Around 9-11 satellite casinos and 3 Mocha Clubs under Melco will shut down unless they obtain direct licenses by the deadline, effectively ending the satellite casino business model in Macau.
Employment impact and mitigation
About 5,600 employees will be affected. Most workers (around 4,800) are employed by major concessionaires (e.g., SJM, Melco, Galaxy), and the rest by third-party operators. There will be no voluntary resignation schemes; instead, major operators are redirecting affected employees to new roles within their organizations or the wider gaming industry to avoid layoffs. Over 400 workers have already been reassigned as part of proactive labor management efforts, backed by government career counseling, job matching, and information sessions.
Regulatory enforcement
The government has deployed 62 inspectors to ensure compliance, emphasizing lawful restructuring and transparency in the transition. This reflects a shift in Macau's gaming sector toward more centralized and regulated operations.
Paradise Entertainment’s strategic shift
With satellite casino closures, companies like Paradise Entertainment plan to refocus on gaming equipment manufacturing rather than operating casino venues.
Macau’s gaming revenue outlook
Despite closures, gross gaming revenue (GGR) is still projected to grow by about 7% in 2025, supported by strong performance in other casino segments and integrated resorts.
SJM Holdings has confirmed the permanent closure of Casino Grandview in Taipa at midnight on 30 July 2025. Gaming tables from Grandview will be redistributed across other SJM-run properties. The closure of Casino Grandview signals the end of an era for smaller, low-stakes casinos that primarily cater to Hong Kong and local punters.
This structural consolidation from a fragmented satellite casino model to a more integrated and licensed casino industry is expected to be a significant change for Macau's gaming sector. With extensive government and operator efforts to manage workforce transition and maintain revenue growth, the city is poised to continue its growth trajectory in the gaming industry.
Sports enthusiasts in Macau may find fewer opportunities to gamble as the end of an era approaches for the city's traditional satellite casino operations. As these casinos shut down, there could potentially be a shift in the city's entertainment landscape, possibly leading to a decline in sports-betting venues.
The closure of small, low-stakes casinos, such as Casino Grandview, which primarily catered to local punters, might also impact associated sports-betting activities within these establishments. The consolidation of Macau's gaming sector towards a more integrated and licensed casino industry may lead to a modification in the availability and accessibility of sports betting opportunities.
