Melco Resorts & Entertainment has confirmed that it will shut down its sole satellite casino, Grand Dragon Casino, along with three Mocha Club slot venues—Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel—before 2025 comes to a close. The company stated this move aligns with its broader development objectives and complies with the legal framework set by Macau’s updated gaming regulations.

Reassignment strategy for employees and gaming equipment:

This decision comes as part of a broader restructuring of Macau’s satellite casino model, which mandates that from January 1, 2026, only concessionaires may directly own casino properties. Satellite operators will no longer be permitted to earn revenue shares but will instead operate on a management fee basis, as outlined in the 2022 amendments to Macau’s gaming law.

To mitigate the impact of the closures, Melco has committed to relocating both employees and gaming assets. Workers currently employed at the soon-to-be-closed venues will be reassigned to other company properties in Macau. Melco emphasized in the press release that this approach ensures continued employment without altering existing job functions.

Similarly, gaming tables and electronic gaming machines from the shuttered venues will be redistributed across Melco’s other Macau casinos, maintaining operational capacity across its network.

While several properties are winding down, Melco aims to maintain three other Mocha Clubs beyond 2025. The company announced plans to seek approval from the Macau SAR government to keep Mocha Inner Harbour, Mocha Hotel Sintra, and Mocha Golden Dragon in operation past the regulatory deadline. However, continuation will depend on meeting all legal and compliance criteria.

A statement from the company confirmed these plans are “subject to compliance with all legal and regulatory requirements.”

Regulatory shift reshaping Macau’s gaming landscape:

The phase-out of the satellite model stems from regulatory reforms introduced in 2022. Under the new framework, satellite casinos must be situated in properties owned by the concessionaire, and any partnerships must shift to a service-based model.

A three-year transition window granted in the updated law will end in December 2025. From 2026, operators acting on behalf of concessionaires will only function as casino managers, compensated through performance-related or inflation-indexed fees, rather than sharing in gaming revenue.

Melco’s move is part of a broader trend as other operators reassess their satellite involvement. SJM Holdings, which oversees nine of Macau’s 11 satellite casinos, also plans significant changes. According to its recent announcement, SJM will discontinue operations at seven of its satellite locations, including Casino Kam Pek Paradise, Casino Fortuna, and Casino Casa Real, by year-end. The group aims to acquire the real estate of the remaining two—Ponte 16 and L’Arc Macau—to ensure those casinos can continue operating under its direct ownership.

In line with SJM’s stated goals, the company said, “SJM Resorts is committed to safeguarding local employment in Macau,” noting that both directly employed staff and local residents working under third-party agreements would be offered roles within the group’s core operations.

SJM’s satellite operations recorded HKD2.85 billion (US$363.2 million) in gross gaming revenue for Q1 2025, representing a 7.6% year-over-year increase. Adjusted EBITDA for the segment also improved to HKD79 million, rebounding from a negative figure in early 2024.

Market analysts at CLSA have suggested that the closure of less profitable satellite casinos could improve table yields for concessionaires such as Melco and SJM. Melco itself noted in its 2024 annual report that it had authorization under the revised gaming law to operate in properties not owned by the company until the end of 2025.

As Macau’s gaming landscape continues to evolve, Melco’s withdrawal from satellite operations marks the beginning of a more centralized model, with tighter ownership controls and standardized compensation structures taking effect in 2026.