Macau’s Secretary for Economy and Finance, Lei Wai Nong, said Wednesday that some satellite casinos have applied to “adjust their operations” in response to proposed changes to the gaming law, but insisted the number is not large.
As reported by Inside Asian Gaming, some satellite casinos will cease gaming operations after 26 June 2022 – the original expiration date of the six current gaming concessionaires before they were recently extended to 31 December 2022 – including all four casinos operated by Golden Dragon Group and the casino at Grand Emperor Hotel.
Answering questions from the media, Lei said the decision to shutter satellite casinos was a business decision and the government would not stand in their way but claimed it does want them to remain. This is despite the government having initially included a requirement for all satellites to be located within premises owned by a concessionaire in its draft gaming law amendments, and prohibiting satellite casinos to participate in revenue sharing.
With satellite casinos having since been given a reprieve on this measure, Lei said, “The retention or departure of satellite casinos has no relation to the gaming law. It is the economic impact caused by the [COVID-19] pandemic.”
Although satellite casinos are now allowed to remain in their current premises without requiring a change of ownership, albeit on a management fee basis rather than revenue share arrangements, Lei explained the government has not made any further concessions in amending the gaming law.
“Macau’s gaming business model of the past 20 years needs to be changed,” he said.
Lei also reiterated comments made by Chief Executive Ho Iat Seng on Monday confirming that the previous MOP$130 billion GGR forecast for 2022 would be lowered. Since the pandemic has caused a significant decline in Macau’s gambling revenue since March due to outbreaks on the mainland, the forecast would be amended in the second half of the year, Lei explained.
Macau’s GGR for the first five months of 2022 is down 44.0% year-on-year to MOP$23.79 billion (US$2.95 billion).
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