The chairman of Paradise Entertainment Ltd, Jay Chun, has highlighted the “significant contribution” from satellite casinos to the local economy amid concerns over their future.
Paradise, which provides casino management services to Casino Kam Pek Paradise under the license of SJM Resorts, is one of a number of satellite casino operators anxiously awaiting finalization of amendments to Macau’s gaming law, which looks likely to include a revamp of the satellite casino model.
Under the proposed amendments, currently in front of the Legislative Assembly, the city’s 18 satellite casinos would in future be required to be located within properties owned by one of the city’s six licensed concessionaires, with a three-year grace period to be granted from the time new concessions are granted. IAG recently reported that this three-year window is expected to start from early January 2023.
Addressing the issue as part of Paradise’s 2021 results announcement, Chun noted that, if the gaming law amendment is adopted, it “will significantly affect the operation of satellite casinos.
“The Group, being the service provider of Casino Kam Pek Paradise, shall be affected by the enactment of the Draft Bill,” he said. “The Group is still waiting for further details of relevant provisions of the Draft Bill to be announced and confirmed and will assess its impact on the Group’s operations.
“That said, it has no doubt that satellite casinos (including Casino Kam Pek Paradise) in Macau have made significant contribution to Macau’s economic development and job creation in the past decades.
“The Group has a good reputation as a casino management service provider focusing on mass market patrons for satellite casinos, and has a strong foothold on this aspect in the gaming industry, which has been demonstrated by the outperformance of Casino Kam Pek Paradise [compared to] many other satellite casinos.
“The Group has a strong will of continuing to provide efficient casino management services and will stay attentive to the development and identification of cooperation opportunities in order to contribute to the Macau gaming industry within the ambit of the new laws.”
The Macau Gaming Equipment Manufacturers Association (MGEMA) – an entity representing the interests of gaming and technology suppliers and chaired by Chun – had last year called for proposed revisions to Macau’s gaming law to include the granting of legal status to satellite casinos.
The organization argued that the assets of the 18 satellites exceeds MOP$50 billion (US$6.2 billion) and that they employ around 15% of the local gambling industry workforce.
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