Macau chief sets out approach for satellite casino transition

Sam Hou Fai, the Chief Executive of Macau, has intimated that the government will oversee the conclusion of the satellite casino transition process in adherence with recognised legal procedures. 

His comments suggested an orderly, seamless transition is desired, but as much as the authorities will comply with the legal system and local regulations, the changes will have a massive impact in the territory.

Macau (or Macao) is a special administrative region of China, operated on the “one country, two systems” principle as in Hong Kong.

The Chief Executive is the head of government in Macao, where Chinese law is largely exempt, with the office forming one of the three branches along with the Legislature and the Judiciary. 

The former Portuguese colony is a gambling mecca with the industry putting the place on the map. However, recent reforms have heralded change to the casino framework, aimed at regulating the system following a period of turbo-charged growth.

Chief Executive Hou Fai has called upon concessionaires responsible for satellite venues to take the required steps to prepare for the transition and to ensure employees’ future arrangements are considered.

At present, satellite casinos operate under a profit-sharing model, with the venues often owned by third parties. That is all set to change according to the reforms to gaming law made in 2022. 

The new system, to be implemented by the end of this year, will see a shift away from shared revenues to having to stand alone. They will need to generate sufficient income from management fees, and all venues will be required to be owned and operated by licensed concessionaires.

Hou Fai also spoke of the need to embrace responsible gaming measures, as well as promoting non-gaming investments in Macau. There are further government plans to push the region’s tourism pull to markets across Asia and in South America. 

Macau CE Sam Hou Fai has made it clear that the future of the city’s satellite casinos is now in the hands of the gaming concessionaires. https://t.co/jmZNPDAuuD

— Asia Gaming Brief (@agbrief) April 15, 2025

The expected closure of a number of satellite casinos is expected to have a domino effect on the local economy, particularly on workers.

Lawmaker Jose Maria Pereira Coutinho has implored the government to ensure workers are protected, given the significant uncertainty of what comes next. This includes a plea for unemployment benefits to be extended from the current 90 days, up to 360 days. 

“In these trying times, extending benefits is not just a suggestion, it is a necessity for the people who will be severely impacted,” he stated.

“What will happen to these workers if they are suddenly thrust into roles they are unprepared for?” posed Coutinho. 

“It is the government’s responsibility to ensure their transition is smooth and supportive.”

Image credit: Grok/X

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