Macau’s licensed integrated resorts will emerge stronger with the closure of 11 satellite casinos in the city, as gambling activities are expected to shift to the casinos’ main properties and bolster their profit margins, according to analysts.
The shares of the three casino operators affected by the move advanced after the closures were announced on Tuesday. The move affected 11 casinos licensed by Macau’s concessionaires but operated by third parties, down from as many as 21 in 2022 before the current licences were renewed.
SJM Holdings, which has licensed nine of these satellite casinos, was the biggest winner, with its stock jumping by 6.3 per cent to HK$2.55 in Hong Kong. Melco Resorts & Entertainment, with one third-party gambling hall under operation, rose 4.4 per cent to US$6.15 in New York on Monday. Galaxy Entertainment Group, which must shut one satellite under the order, closed unchanged at HK$33.10 after falling by as much as 2.2 per cent.
In 2022, the Macau government amended its gaming laws before granting six new 10-year casino concessions. It gave satellite casinos three years to shift from a profit-sharing model to a structure where they are directly owned by licenses.
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