The Grand Emperor Hotel in Macau has plans to cease casino gaming operations by this summer. Just a few days ago, the facility announced that its casino will be closed by June 26, 2022. The decision was made based on COVID-19 issues and the downward trend expected for VIP gaming.
SJM Resorts Service Agreement to Cease
Emperor Entertainment Hotel Limited decided to avoid renewing its service agreement with SJM Resorts regarding casino gaming. The company has operated casino gaming at the Grand Emperor Hotel for more than a decade. The operator agreement was first signed in 2010 and casino services were provided based on the satellite casino system in Macau.
Back in 2020, Emperor Entertainment decided to renew the agreement with SJM Resorts for a two-year time frame. The expiration date is set for June 26, 2022, and the agreement will not be renewed. The decision comes as other satellite casinos are shutting down.
According to a report by Inside Asian Gaming, Emperor Entertainment said that the tough business environment during the COVID-19 pandemic within the past two years played a role in the closure. The Group saw significant losses in the year ending on March 31, 2021, as well as the six-month time frame ending in September 2021.
Grand Emperor has plans to continue providing hotel and hospitality services. The company recently purchased another hotel in Hong Kong as well as two blocks of apartments.
Golden Dragon Group Satellite Closures
As mentioned, other operators are deciding to cease satellite operations in Macau. The Golden Dragon Group recently announced that it will shut down four satellite venues in 2022. The Casino Royal Dragon, Casino Million Dragon, and Grand Dragon Casino are among the venues shutting down.
Additional venues expected to close include the President Casino, Rio, and Casino Waldo. The venues are no longer going to offer services due to issues surrounding COVID-19 and expected gaming law changes.
Macau officials are planning on allowing satellite gaming only if the facility operates where the license holder owns the property. This would create an added cost for most satellite casino providers as they offer services within buildings that they do not own.
The legislation would allow satellite casino agreements to utilize a three-year grace period to meet the requirements if the current concessionaire can obtain a new concession when the tender process takes place.
It seems the satellite casino operators do not want to bother with making the needed changes to continue functioning. Legal issues as well as the continued trouble with the COVID-19 pandemic have most operators ready to call it quits.