Shares of Hong Kong-listed casino operators diverged sharply on Tuesday after Macau confirmed it will shutter all remaining satellite casinos by the end of 2025, a move that wiped out half of Paradise Entertainment’s market value while fueling speculation-driven gains for Success Universe.
Paradise Entertainment Ltd, which runs Casino Kam Pek Paradise under SJM Holdings‘ licence, has seen its stock tumble more than 50% so far this week. The firm resumed trading on Tuesday after a 47.5% plunge and trading halt on Monday, falling as much as 32.3% intraday before paring losses to close 8.3% lower at HK$0.88 ($0.11).
In a filing to the Hong Kong exchange, the company said satellite casino operations accounted for 66.2% of its total revenue in 2024 and warned of a “material reduction in reported revenue and profit” beginning in 2026. Paradise said it would now focus on its core gaming equipment business.
The sell-off followed a joint announcement on Monday by the Macau government and gaming concessionaires confirming that the city’s 11 remaining satellite casinos will cease operations at the end of a three-year grace period set under new concession terms introduced in 2023. Satellite casinos must either close or convert to a management company model, which bars them from sharing gaming revenue with concessionaires and instead permits only a fixed management fee.
SJM Holdings, whose licence supports nine of the satellite casinos, including Kam Pek Paradise, announced plans to acquire the properties housing two of the casinos—Ponte 16 and L’Arc Macau—with a view to operating them directly beyond 2025. L’Arc is linked to Angela Leong On Kei, SJM’s co-chairperson.
Shares in Success Universe Group Ltd., which co-owns Ponte 16 through a joint venture with SJM, surged 118% to HK$0.144 on Tuesday following the disclosure. However, the company cautioned in a stock exchange filing that “no definitive and/or legally binding agreements or contracts” had yet been reached regarding the acquisition.
Other firms with exposure to the satellite model also suffered declines. Macau Legend Development Ltd., which operates Casino Legend Palace under SJM’s licence at its Fisherman’s Wharf complex, fell 7.14% to HK$0.091. The company said it would “focus on enhancing non-gaming offerings, including convention, exhibition, and hospitality services.”
Emperor Entertainment Hotel Ltd., which runs its namesake hotel and casino under SJM’s licence, dropped 14.7% to HK$0.29. The firm said it was “actively exploring any suitable business opportunities” in response to the closures.
Macau’s satellite casinos—third-party owned venues operating under major concessionaire licences—have been a legacy feature of the local gaming landscape. Their phase-out marks a significant shift in regulatory posture as authorities seek to streamline control and increase transparency in the industry.
1
20
20
