As Macau grapples with regulatory transformations in its gaming industry, satellite casinos find themselves at a critical juncture. These unique establishments, independently operated but reliant on the gaming licenses of Macau’s six major concessionaires, face an uncertain future as the government-mandated transition period draws to a close. With the new gaming law enforced in 2022 and a December 2025 deadline looming, stakeholders remain in limbo over what lies ahead for these casinos.

Satellite casinos today: Decline in numbers

At the start of 2023, Macau had 11 satellite casinos in operation, down from 18 before the enforcement of the revised gaming law in 2022. This marked a 40 percent decline in their numbers, attributed to operators exiting the market due to increased regulatory demands and the requirement for concessionaire ownership.

The revised legislation mandates that all casinos in Macau must be directly owned by one of the six licensed concessionaires. Previously, satellite casinos operated on a profit-sharing model, with independent companies managing daily operations. This change has disrupted the business models of satellite operators, many of whom lack the resources to adapt.

Regulatory challenges

The new gaming law aims to tighten regulatory oversight of Macau’s gaming industry. However, the lack of clarity about the future of satellite casinos has left operators struggling to comply.

Jay Chun, chairman of the Macau Gaming Equipment Manufacturers Association, said that no formal discussions have been initiated about the future of satellite casinos. In an to Macau Business in November 2024, Chun expressed hope that the (then) upcoming government will initiate discussions.

It has been more than a month after Sam Hou Fai officially sworn in as the Chief Executive of Macau in December. However, no official discussions have been commenced yet with regard to the fate of satellite casinos in the Special Administrative Region.

This uncertainty has stalled investment and development, with many operators hesitant to commit to long-term strategies without clear guidelines.

Economic and social implications

The decline in satellite casinos has far-reaching implications for Macau’s economy, particularly in regions that depend heavily on gaming revenue. These casinos have historically contributed to job creation and supported local businesses in smaller communities.

Employment concerns: The reduction in satellite casinos has resulted in job losses, impacting thousands of workers employed directly or indirectly by the gaming industry.

Local economies: Satellite casinos often serve as anchors for local economies, driving foot traffic to nearby restaurants, hotels, and retail establishments. Their closure threatens to destabilise these ecosystems.

In 2022, when the new law was first introduced, government officials assured stakeholders that a three-year transition period would provide sufficient time for adjustment. However, with less than a year remaining, many operators feel unprepared for the future.

Timeline of changes

• June 2022: Macau’s revised gaming law comes into effect, mandating direct concessionaire ownership of casinos. Satellite casino operators are given a three-year transition period to comply.

• January 2023: The number of satellite casinos drops from 18 to 11 as smaller operators exit the market.

• January 2025: With less than a year left in the transition period, operators call for clearer guidance from the government on compliance and operational frameworks.

Need for clarity

Stakeholders in the gaming industry have been vocal about the need for clear government directives. Many have highlighted the challenges posed by the regulatory changes and the uncertainty surrounding the future of satellite casinos.

Concessionaires, too, have expressed concerns about the strain placed on their relationships with satellite operators. As these partnerships are renegotiated to align with the new laws, tensions have arisen over profit-sharing models and operational responsibilities.

What happens next?

That’s a question looming in the minds of several satellite casino operators and concessionaries today. SiGMA News has sought comments from SJM Holdings, Melco Resorts and Entertainment, and Paradise Entertainment Group, however, they haven’t been answered until the time of publication of this report.

As the December 2025 deadline approaches, the future of Macau’s satellite casinos remains uncertain. Key questions need to be addressed to ensure a smooth transition:

• Operational framework: Will satellite casinos be allowed to continue under modified partnership agreements with concessionaires?

• Economic safeguards: What measures will the government implement to mitigate job losses and economic disruptions in regions reliant on satellite casinos?

• Investment climate: How can authorities foster a more predictable regulatory environment to attract investment?

These unanswered questions have left operators, employees, and investors in a state of apprehension. For many, the clock is ticking to either comply with the new regulations or face closure.

Online casinos in mind? You’ve landed at the right place. At SiGMA Play, we bring you the list of best online casinos that provide generous welcome bonuses, fast payouts and plenty of games to choose from.