As Macau approaches the end of 2025, sweeping changes are underway for its satellite casino sector. In response to the scheduled shutdown of several satellite casinos, the Macau SAR Government has reinforced its commitment to safeguarding employment and supporting businesses in adjacent communities. Authorities have instructed the gaming concessionaires—SJM, Galaxy, and Melco—to integrate all satellite casino staff into their existing operations, ensuring no local worker is left without job security.

Secretary for Economy and Finance Tai Kin Ip underscored this directive in a recent government briefing, stating that concessionaires are responsible for “fully absorb[ing] all employees from satellite casinos currently operating under their gaming concessions.” Approximately 5,600 local employees are working in these establishments, with 4,800 of them technically employed by the concessionaires and assigned to satellite venues, while the remaining 800 are directly hired by the operators of those casinos.

The SAR Government has emphasized that it will closely monitor the transition process. Concessionaires are required to secure continued employment for all staff under their jurisdiction, while independent satellite operators must also formulate proper arrangements for their directly hired employees.

Support Services Rolled Out for Affected Workers and Communities

To facilitate a smooth employment transition, the Labour Affairs Bureau has dispatched teams to satellite casinos to engage in dialogue with human resources departments and workers. In addition to providing consultations on labor laws, the Bureau has activated support hotlines and established service counters at key offices—including Tai Peng and Golden Dragon—offering job-matching services and vocational training.

The impact of the closures extends beyond employees. Government surveys have identified roughly 320 businesses—ranging from pawnshops to electronics retailers—that are situated around satellite casino zones and could be directly affected. Tai Kin Ip noted that “about half of these businesses may be directly affected,” prompting the Economic and Technological Development Bureau to initiate field inspections and consider revitalization initiatives, including interdepartmental collaborations to enhance neighborhood appeal and promote tourism spending in these areas.

Transition to a New Management Model for Viable Satellite Casinos

While some satellite casinos face closure, others are expected to survive under a revised operational model. Following amendments to Macau’s gaming law, satellite venues must operate either under a fixed-fee management agreement or direct ownership by the concessionaire. Revenue-sharing arrangements will no longer be permitted after December 31, 2025.

The shift to a fixed management fee model is expected to benefit both operators and the broader economy by providing greater stability. Although fee structures are still under negotiation, CLSA expects them to be indexed to 2025 performance and adjusted for inflation. Calls from industry stakeholders and legislators for more government involvement in setting these terms are growing, with emphasis placed on protecting employment and supporting local businesses.

SJM to Retain Key Assets, Shutter Loss-Making Sites

Among the three concessionaires, SJM has the most extensive network of satellite casinos. It recently announced plans to shut down seven sites—including Kam Pek, Grandview, and Landmark—while initiating steps to acquire the premises housing Ponte 16 and L’Arc casinos. Although no formal deals have been finalized, the company aims to maintain operations at these more profitable locations.

According to SJM, regardless of acquisition outcomes, all gaming equipment from the soon-to-be-closed casinos will be relocated to self-owned venues. The company assured that “all Macau residents currently working at the satellite casinos scheduled for closure […] will be offered job opportunities within SJM Resorts’ portfolio of properties.”

Broader Economic Implications and Strategic Table Reallocation

Though the closures may impact local businesses and employment in the short term, analysts see potential upside. CLSA estimates that redeploying gaming tables from underperforming satellite casinos to higher-yield locations could increase profitability. Tables shifted to prime properties could generate daily incremental yields of HK$34,343, offering a rapid payback within just a few days.

Furthermore, this redistribution strategy aligns with government efforts to optimize Macau’s gaming landscape while maintaining employment levels and economic stability. Unemployment in Macau edged up slightly to 1.9% in April 2025, highlighting the importance of timely and coordinated action.

In conclusion, while Macau’s satellite casino ecosystem is undergoing a major transformation, the government and gaming operators are taking coordinated steps to ensure a smooth transition for workers, maintain economic balance, and sustain viable operations under the new legal framework.