SJM to buy two of its satellite casinos but close the rest
All of Macau’s 11 satellite casinos will close at the end of 2025, although SJM Holdings, who operates nine satellite casinos, could purchase two of the licenses outright so that L’Arc and Ponte 16 can continue to operate.
SJM said: “After in-depth analysis and evaluation conducted by the Board while taking into account factors such as alignment with SJM Resorts’ long-term objectives and competitiveness, and strategic location of each satellite casino, the Board has concluded the intention to acquire the properties where Casino L’Arc Macau and Casino Ponte 16 are located. Accordingly, SJM Resorts will proceed with negotiations toward the potential acquisitions of such properties.
“The Group believes that continuing operations at these locations will be beneficial to the Group and in the best interests of the Company and its shareholders as a whole, subject to successful outcome of negotiations.”
Under Macau gaming law revised in 2022, SJM Resorts operated nine satellite casinos under the previous profit-sharing model for a transition period of three years, which will end on 31 December 2025. Upon termination of the transition period, such satellite casinos must be directly owned by SJM Resorts or transition to a management agreement structure with no profit-sharing arrangement in order to continue to operate beyond 2025.
SJM added: “Upon expiry of the relevant service agreements on 31 December 2025: Casino Casa Real, Casino Emperor Palace, Casino Fortuna, Casino Grandview, Casino Kam Pek Paradise, Casino Landmark, and Casino Legend Palace. Regardless of the outcome of negotiations for the above potential acquisitions, all the gaming tables and slot machines at the Group’s satellite casinos will be allocated to the casinos owned by SJM Resorts. SJM Resorts is committed to safeguarding local employment in Macau. All Macau residents currently working at the satellite casinos scheduled for closure, regardless of whether they are directly employed by SJM Resorts or by its third-party partners, will be offered job opportunities within SJM Resorts’ portfolio of properties. Those who are already SJM Resorts employees will retain their employment and be reassigned to similar gaming-related roles at other casinos based on operational needs; non-SJM Resorts’ employees who are local residents will also be invited to apply for suitable positions of the Group. The Board currently does not anticipate any material adverse effect on the Group’s operations, liquidity, or profitability as a result of the planned satellite casino portfolio.”
