Macau Businesses Sound Alarm Over Casino Shutdown Fallout
Business owners in Macau are signaling significant economic consequences as a minimum of nine satellite casinos may permanently shut down by the end of the year. The casinos will permanently shut down by December 31, 2025, endangering approximately 6,000 jobs in the gaming center.
The satellites, functioning under the permits of Macau’s six concessionaires since the industry liberalized in 2002, are facing pressure from stricter regulations, declining revenues, and the government's efforts to consolidate and modernize the sector.
Business owners stated on Sunday that the government has drastically misjudged the economic impact of the decision.
Sector Disruption
The shutdowns come after a three-year grace period initiated by Macau’s revised Gaming Law, which revamped the sublicensing system, mandating satellite casinos to either shut down or be taken over by primary license holders.
However, numerous small and medium-sized enterprises, including eateries, retail outlets, convenience stores, and service providers, depend greatly on the consistent influx of casino workers and guests.
Local businesses in Macau’s Zona de Aterros do Porto Exterior (ZAPE) district warn that the decline in daily traffic near the closed casinos will result in economic challenges.
The area is expected to experience the most severe impact from the closures since it has six of the nine casinos set for permanent closure according to the new regulations. Casa Real, Fortuna, Kam Pek, Landmark, Legend Palace, and Waldo are all properties sub-licensed by SJM Holdings.
New Entertainment Area?
The Macau ZAPE Industry and Commerce Association is requesting government intervention to negotiate with SJM for the continuation of the satellites. SJM, together with the other five concessionaires, must show social responsibility and aid local businesses as per the terms of its newly renewed license.
If that doesn't work, the coalition suggests that the government should promote other license holders to intervene and rescue the business.
Another recommendation was for the government to convert the ZAPE district into a hub for non-gaming nightlife, featuring leisure dining, walkable streets, and unique attractions.
During a press conference on June 9, André Cheong, Macau’s Secretary for Administration and Justice, highlighted that the closures were a “commercial decision” made by the concessionaires.
He mentioned there would be "no noticeable effects on gross gaming revenue (GGR)," while there would be a "beneficial effect resulting from the enforcement of the regulations on how this industry functions."
