Macau government yet to start talks on future of satellite casinos amid new gaming law

As the end of a three-year transitional period under Macau's revised gaming law draws closer, the government has yet to initiate discussions with casino operators about the future of the gambling hub's satellite casinos. With just 13 months remaining before the transitional grace period expires, there are concerns about how the revised framework will impact local businesses and employees.

Under the new gaming law, satellite casinos may be required to shift their operations to become purely management companies, with gaming revenue no longer shared between concessionaires and operators. This potential restructuring has raised alarms among legislators, particularly regarding the fate of the nearly 10,000 workers employed across the 11 satellite casinos currently in operation.

Talks on the matter are expected to begin only after Sam Hou Fai assumes office as Macau’s Chief Executive on December 20, following the departure of current Chief Executive Ho Iat Seng. With uncertainty surrounding the direction of the industry, the delay in discussions has left operators and employees in limbo.

Legislator José Pereira Coutinho has voiced concerns about the possibility of satellite casino closures, which could lead to significant job losses. Coutinho highlighted the vulnerability of employees in a sector already strained by the aftermath of the COVID-19 pandemic.

In 2022, seven satellite casinos shut down as the pandemic and changing regulations took a toll on Macau’s gaming industry. The current landscape, with 30 operational casinos, including the 11 satellite casinos, faces a significant shift as the expiration of the grace period approaches.

Jay Chun, co-chairman and managing director of Paradise Entertainment, expressed cautious optimism about the future of satellite casinos. Chun emphasized the importance of protecting jobs: "We have many employees, and no one wishes for these workers to abruptly lose their jobs." He also stressed the need to clarify how management fees will be calculated under the new framework, as each venue operates under unique conditions, as per Macau News Agency.

Industry representatives have also called for additional support for affected workers, including paid training programs to help them adapt to the industry's evolving needs. "Providing paid training is vital for the industry’s sustainable development," said one representative, highlighting the importance of upskilling workers to ensure long-term job security.