Galaxy Entertainment Group Limited Closes Pair of Macau Casinos
The gambling-friendly Macau region reportedly had two fewer casinos after news broke that its operator Galaxy Entertainment Group had closed its Rio casino and presidential casino.
According to a report by Inside Asian Gaming, the closure of ‘satellite’ sites came early this morning ahead of the introduction of legislation that is expected to compel such companies to commit to a new management cost business model. Sources detailed that the two in-city facilities were operated by the City Club division of Galaxy Entertainment Group, a collaboration that began in 2004 and also includes a nearby casino Waldo facility.
Galaxy Entertainment Group Limited reportedly claimed the closures were not caused by job losses as all affected workers were ‘replocated to other casinos in the group with all their employment conditions unchanged’. The Hong Kong-based company has also reportedly disclosed that this transfer will take place once internal inventory is completed and team members are asked for a preferred new location.
“They will also be offered vocational training to help them adjust to the new work environment. We thank the public and customers from all walks of life for their support and love over the years, and we will continue to contribute to Macau’s leisure and tourism industry
All casinos in Macau are operated by Melco Resorts and Entertainment Limited, MGM China Holdings Limited, SJM Holdings Limited, Sands China Limited, Galaxy Entertainment Group Limited, or Wynn Macao Limited. But some of these companies essentially entrust game operations to ‘satellite’ partners who profit from earning a portion of their revenue.
But that’s about to change, as the draft gaming bill, which is currently being passed through legislative proceedings, is supposed to give those places three years to give up or close their previous business models. Macau’s list of closed ‘satellite’ casinos will soon reportedly include more Grand Emperor hotels, as well as all four run by local company Golden Dragon Group Limited.
The Macau news agency said in its own report that the former Portuguese residence was home to 18 “satellite” casinos operating under contracts with license holders SJM Holdings Limited, Galaxy Entertainment Group Limited and Melco Resorts and Entertainment Limited. It also said the club is expected to shrink to at least seven later this year as operators adhere to the expected principles of legislation.
