Macau’s satellite casino operators voice concerns over lack of guidance on management fees

Macau’s satellite casino operators have raised concerns over the absence of clear direction from both the government and gaming concessionaires regarding management fees for their operations.

The uncertainty has prompted calls for government intervention to ensure a balance between the interests of gaming operators and satellite casinos, stabilize the business environment, and maintain profitability for satellite venues, particularly in the NAPE area of the Macau Peninsula.

Operators have expressed frustration at the lack of communication regarding the transition to the new regulatory framework, local media reported, without identifying the specific satellite casinos raising these concerns.

Under Macau’s revised Gaming Law, satellite casinos were granted a three-year transition period from January 1, 2023, to December 31, 2025. During this time, they can continue operating under the previous system. Afterward, they will only be allowed to operate through management companies, with concessionaires paying a management fee. Satellite casinos will no longer receive commissions or a share of profits.

As the transition period nears its end, operators have grown increasingly uncertain about the future. Industry representatives noted that neither the current nor previous government has provided clarity on the scope or structure of the management fee. Concessionaires have also refrained from engaging with satellite casinos to establish fee standards, further compounding the uncertainty.

A report by The Macao Daily highlighted arguments from satellite casino operators that gaming facilities integrated with hotels play a crucial role in the tourism sector. These operations are part of the “1+4” model, which aims to attract visitors and support small and medium-sized enterprises (SMEs) in the area.

Currently, 11 satellite casinos operate in Macau, with most concentrated in the NAPE area. Operators have warned that closures due to unprofitability would have far-reaching effects, potentially reducing customer traffic, economic activity, and support for surrounding businesses.

Under the amended 2022 gaming law, satellite casinos can continue operations after 2025 only if managed by concessionaires. The amendment allows them to operate outside properties owned by concessionaires, exempting them from Section 2 of Article 5. However, Section 5 stipulates that once a satellite casino ceases operations, it cannot resume as a gaming venue.