SJM Holdings Ltd has confirmed the completion of its purchase of L’Arc casino hotel complex on Macau’s peninsula, marking a significant shift in how the property’s gaming operations will be managed going forward. The company also stated that its wholly owned subsidiary, SJM Resorts SA, has obtained authorization from the Macau government to operate Casino L’Arc Macau as a self-promoted casino rather than under a satellite arrangement.

L’Arc is a downtown hotel and casino property that previously functioned as one of SJM’s satellite gaming venues. According to the company, the acquisition agreement was finalized on November 20 and reached completion on December 17. With the transaction concluded, SJM Resorts will take over the casino’s operations directly in the final days of the year.

“Following the completion of the acquisition, SJM Resorts received the requisite approval from the Macau government to directly manage and operate Casino L’Arc Macau from 2.00am on December 30,” the company said in its announcement (pdf). From that moment, Casino L’Arc Macau will no longer operate under a service agreement tied to the satellite casino framework.

Shift From Satellite Model to Direct Management

The move brings Casino L’Arc Macau into SJM Holdings’ core portfolio as a self-owned and self-operated gaming venue. Previously, satellite casinos were run by third-party investors under agreements with concessionaires. Under Macau’s revised gaming rules, this structure is being phased out.

Beginning in 2026, third-party investors involved in satellite casinos will be limited to earning a management fee through a designated management company. They will no longer be permitted to share directly in gaming revenue. Although a three-year transition period from 2023 through the end of this year allowed the older model to continue, the deadline for full compliance is approaching.

SJM had already outlined plans to restructure its satellite casino footprint. In June, the company said it would stop operating seven of its nine satellite casinos by the end of 2025, with only Ponte 16 and L’Arc expected to continue. To meet regulatory requirements, SJM planned to absorb those gaming operations into its own business. It later chose to discontinue operations at Ponte 16, leaving L’Arc as the sole satellite property to transition into a directly managed venue.

Macau’s remaining satellite casinos operated under other concessions have already closed. Properties linked to Melco Resorts & Entertainment Ltd and Galaxy Entertainment Group Ltd ceased operations earlier this year as the new framework took effect.

Strategic Value of the L’Arc Property

SJM said the addition of L’Arc enhances its position in a dense area of the Macau peninsula where several of its Lisboa-branded properties are located. “This addition to the group’s portfolio strengthens its position within a high-density catchment area, enhancing synergies across its Lisboa-branded properties and enabling SJM Resorts to retain geocentrically loyal customers, improve customer circulation and broaden its market reach,” the company stated.

The L’Arc Hotel complex includes hotel rooms, food and beverage outlets, retail space, and the casino itself. The property has a gross floor area of about 86,438 square metres. SJM confirmed it has already assumed responsibility for the integrated operations of the hotel following the completion of the acquisition.

Investment bank JP Morgan also weighed in on the transaction earlier this month, noting that the HKD1.75 billion price tag appeared favorable. In its assessment, the bank said the agreed price looked “attractive” and represented a “good deal” for SJM Holdings due to the property’s “prime location” on the Macau peninsula.