Most Satellite Casinos Should Continue to Operate After Gaming Law Changes

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Despite changes to the gambling law, most satellite casinos are expected to continue operating, chief executive Ho Iat Seng said today (Monday), TDM Radio reported.

Speaking to the media after the opening ceremony of the Sac Pai Van health center, Ho Iat Seng said he had been in communication with the industry, adding that the number of satellite casinos that are expected to close would not have an impact. important on the unemployment rate of the RAS.

A new version of the General Gaming Law introduced by the Macao SAR government allows satellite casinos to continue operating even if the property where they are located is not wholly owned by a gaming concessionaire, a reversal from to the previous position that could see these casinos closed if the situation has not been resolved within a transitional period of three years after the entry into force of the new law.

The previous draft text had led several industry insiders to warn that several satellite casinos in the city could be closed and increase local unemployment levels.

However, under the new regulations, these management entities will only be able to charge management expenses and will not be allowed to share a percentage or commission on gaming revenue.

A new version of the General Gaming Law introduced by the Macao SAR government allows satellite casinos to continue operating even if the property where they are located is not wholly owned by a gaming concessionaire, a reversal from to the previous position that could see these casinos closed if the situation has not been resolved within a transitional period of three years after the entry into force of the new law.

The previous draft text had led several industry insiders to warn that several satellite casinos in the city could be closed and increase local unemployment levels.

Yet under the new regulations, these management entities will only be able to charge management fees and will not be allowed to share a percentage or commission of gaming revenue, a change that industry members say would worsen its future business prospects.

Seven satellite casinos previously planned to cease operations by the end of June, while Emperor Entertainment Hotel Limited already announced last month that its casino at its Grand Emperor Hotel would cease operations.

The Million Dragon Hotel – part of Chan Meng Kam’s Golden Dragon Group – has already sent dismissal letters to some of its employees, with the dismissed employees believed to be local residents and marketing staff.

The number of non-resident workers employed by the six gaming operators in the Macao SAR at the end of 2021 was 32% lower than the 23,676 non-residents employed before the pandemic outbreak, according to the Bureau of Business Labor (DSAL) .

In its comments today, the EC also noted that the government’s estimate of MOP 130 billion ($16 billion) in gross gaming revenue for 2022 – on which the government’s budget projections were based – would be revised. .

The local government had repeated the MOP 130 billion target set last year, expecting some MOP 45.5 billion in gambling taxes.

However, so far the first four months of the year have seen a 36% year-on-year drop in gaming results, amounting to MOP 20.4 billion.

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