The last few years have been challenging for Macau casino concessionaires. Over the last two years, they have been hit by the coronavirus pandemic, which has resulted in border closures and social distancing measures, keeping the gambling venues’ operational results and revenues low.
Thankfully, according to reports, the Chinese special administrative region may finally be on its way to turning the tables despite the problems it has been recently facing. However, some gambling companies have decided to fully cease their casino operations in Macau or to reduce their presence in the local casino industry as a measure aimed at helping them cope with the financial difficulties faced during the Covid-19 pandemic.
One of the operators that unveiled such measures is the Grand Emperor Hotel. As it was officially revealed, the company is set to pull the plug on its casino operations in Macau on June 26th, 2022. The operator shared that the decision was made as a result of several factors, including the financial struggles of the high-roller gaming sector in Macau caused by the constant restrictions imposed on junket operators. Тhe still ongoing precautions linked to the coronavirus pandemic were also among the main reasons for the company’s decision to cut its casino operations in the special administrative region.
According to the SJM Resorts’ announcement, the company would be unable to continue the operation of Grand Emperor’s casino business, which would put an end to the two parties’ collaboration.
Seven Satellite Casinos to Withdraw from Macau’s Casino Sector
The current casino operating licenses in Macau were originally supposed to expire on June 26th, 2022. While 6 license holders have already paid $6 million to get their casino operating permits extended to the end of the year, Grand Emperor has not done so. The casino operated by Grand Emperor is categorized as a satellite casino and has now become the latest of some similar establishments in the special administrative region to be ceasing operation in the local gambling market. The move comes at a time of an increased push for a regulatory overhaul in Macau.
For the time being, 7 casinos have confirmed that they are to pull the plug on their casino operations in Macau. Those include the gambling properties that Golden Dragon Group owns. The decision has been partly made because of the uncertainty associated with the coronavirus pandemic, logistical challenges and travel permits, as well as the increasingly restrictive approach to gambling legislation and regulation that is being adopted by the government of mainland China. The policy of Macau’s tourist industry to be less dependent on the local gambling sector has also been among the reasons why some casino companies have decided to cease their operations in the special administrative region.
Currently, the Government of Macau insists that so-called satellite casinos must be operated out of a concessionaire-owned property – a requirement that, obviously, makes it harder to lease the casino-operating rights.
After recently adding another Hong Kong-based property to its portfolio, Grand Emperor has revealed that it would double down its efforts in the hospitality sector. The company once again confirmed that it remains committed to the hospitality industry and further noted that the Board seeks to explore suitable opportunities to make the best of the operator’s financial resources in the hospitality sector.