Background: The End of the Sublicensing Era

Macau’s satellite casino model was originally devised in the early 2000s when the region liberalized its gaming sector but limited the number of official gaming licenses to six. Satellite casinos operated under sublicenses from major operators like SJM, Sands China, Galaxy Entertainment, Melco Resorts, Wynn Resorts, and MGM China.

However, the new law — aligned with Beijing’s push for tighter oversight and economic diversification — closes loopholes by ensuring that only license-holding concessionaires bear full responsibility for casino operations. The ultimate goal is to move away from gaming dependence and develop Macau into a world-class, diversified tourism destination.

Impact on Workforce and the Industry

The closures will affect approximately 6,000 workers, including 5,600 local employees and 400 expatriates. To address this, the Macau government has announced supportive measures, including the establishment of employment hotlines, on-site service counters, and labor rights seminars.

Despite the scale of job losses, officials emphasize that there will be no significant impact on gross gaming revenue (GGR). At a recent press briefing, Secretary for Administration and Justice André Cheong highlighted that the decision to close the casinos was commercially driven by the concessionaires themselves. He further noted that stricter regulation would lead to long-term positive outcomes for the industry.

Strategic Outlook

The exit of these satellite casinos marks a pivotal point in Macau’s gaming policy and could influence how other Asian jurisdictions approach licensing and regulatory frameworks. While the immediate effect is contraction, the long-term vision is clear: a more streamlined, compliant, and diversified entertainment landscape in Asia’s gaming capital.

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