Changes in Macau’s satellite casino industry could put up to 12,000 local jobs at risk. Analysts suggest SJM Holdings may close its nine satellite casinos to drive more visitors to its Cotai resort.
Macau’s satellite casinos, which operate under the licenses of the city’s gaming concessionaires, must transition to a new operational model by the end of 2025. This shift could put thousands of local jobs at risk and impact small businesses, including the satellites themselves.
According to Macau Business, CBRE Equity Research suggests that satellite casinos may no longer be "financially viable" in the future. The firm also speculated that SJM Holdings could shut down its satellites to drive more visitors to Grand Lisboa Palace.
CBRE noted that such a move could "reallocate some of that table capacity (and potentially customers)" to SJM’s Cotai flagship, boosting its mass market business.
Currently, satellite casinos are managed and promoted by third parties under a profit-sharing model. Of the 11 remaining satellites in Macau, nine operate under SJM’s license, while the others are tied to Melco and Galaxy.
However, this structure is set to change. Macau’s 2022 gaming law amendments gave satellite casinos three years to adopt a new model. By 2025, all satellites must be directly owned by licensed concessionaires. Those that remain will generate revenue through management fees rather than profit-sharing.
SJM swings to profitability, commits to efficiency
In its Q4 earnings report released on 4 March, SJM returned to profitability for the first time since the pandemic. Net gaming revenue surged to HK$27 billion (£2.7 billion/€3.18 billion/$3.5 billion), up from HK$20 billion in 2023.
Across Macau, SJM held a 13.1% share of gross gaming revenue, capturing 15.8% of the mass market segment and 5.1% of VIP GGR.
SJM Chair Daisy Ho praised Grand Lisboa Palace’s strong performance, reporting HK$6.58 billion in gross revenue for the year. She highlighted the resort’s growing momentum, crediting its expanding range of non-gaming attractions for strengthening its market position.
Ho also reiterated the company’s focus on “operational efficiencies and long-term sustainable growth.”
However, what this means for SJM’s satellite casinos remains uncertain. Seaport Research analyst Vitaly Umansky noted that, so far, neither the government nor SJM has provided "clarity on the outcome."
Macau satellite workers will be ‘severely impacted’
Lawmaker José Maria Pereira Coutinho is calling on the government to take immediate action to protect satellite casino workers, most of whom are based on the Macau peninsula. He has urged officials to extend unemployment benefits from 90 days to 360 days to provide greater financial security.
“In these challenging times, extending benefits isn’t just an option—it’s a necessity for those who will be hit hardest,” Coutinho stated. He also suggested early retirement as a possible solution for some affected casino employees.
Beyond financial aid, he recommended career counseling, assistance with job applications, and vocational training to help displaced workers transition into new roles.
“What will happen to these employees if they are suddenly forced into unfamiliar jobs?” he asked. “The government has a duty to ensure their transition is both smooth and well-supported.”
Coutinho has voiced these concerns before. Last October, he called for a solid contingency plan to safeguard workers at risk of losing their jobs.
“We cannot ignore that these casino closures will trigger a ripple effect throughout the local economy,” he warned, affecting not just employees but also the small businesses that rely on them.
