Melco Resorts & Entertainment Chairman and CEO Lawrence Ho says the issue of satellite casinos would not have a major impact on the company, adding that it is up to the government to decide their fate.
The three-year grace period granted to the city’s 11 satellite casinos expires at the end of this year, after which time their operators will no longer be allowed to partake in revenue share agreements with their respective concessionaires and will instead have to enter into fee-based management agreements.
However, there has been little feedback on what this means for their viability as of 2026 or whether the concessionaires themselves expect to continue satellite operations.
Of the 11 satellite casinos in Macau, nine run under the license of SJM and one each under Melco and Galaxy Entertainment Group. Grand Dragon in Taipa is Melco’s satellite, operating a total of 17 gaming tables. The hotel, owned by Chan Meng Kam’s Golden Dragon Group, has 356 rooms.
Speaking with local media on the issue of whether satellites would continue beyond this year, Ho said, “I think it’s up to the government to decide. I can’t speak for a lot of people as we only have one satellite casino with only a few tables, so it doesn’t have a big impact. The most important thing is to co-operate with the government and the central government on long-term development.”
Satellites aside, Ho also offered his thoughts on the potential impact of the US-China trade war on Macau’s gaming industry.
“There will be some pain from the trade war, but it’s only short-term,” he said. “Businesses in mainland China and Macau are very united and supportive of our country and I don’t think it’s bad for our country in the long run.
“This year’s revenues, there has been a lot of volatility but we’re not doing too bad in the first quarter. We’re close to the market.”
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