In Macau, the world-renowned gambling capital, a profound transformation is quietly unfolding. The once glorious satellite casinos are exiting the stage, and Macau's gambling landscape is facing a significant turning point. Who can still remain in this competitive gambling arena? This is not only the focus of Macau's gambling future but also a critical juncture for the city's economic and social development.
The "Bird Cage" Gambling Game: A Metaphor for the Casino Lisboa
"Look at that 'bird cage,' it's being renovated, supposedly to accommodate the gambling tables and staff from those satellite casinos," said a native Macanese, pointing to the nearby Casino Lisboa. The exterior of Casino Lisboa resembles a giant bird cage, aptly reflecting the reality of the gambling scene: gamblers, like birds in a cage, find it difficult to enter or leave.
As a landmark building in Macau, Casino Lisboa was founded by "Casino King" Stanley Ho in 1970 and was once the largest hotel and gambling center in Macau. With the rise of modern luxury integrated resorts such as the Grand Lisboa, Sands Resorts, Galaxy Resorts, and Wynn Palace, Casino Lisboa has gradually shown signs of aging. However, the renovation of the "bird cage" hides a significant shake-up in Macau's gambling industry.
Satellite Casinos' Major Retreat: The End of an Era or the Beginning of a New Chapter?
On June 9, 2025, the three giants of Macau's gambling industry—SJM Holdings, Melco International Development, and Galaxy Entertainment—jointly announced that their 11 satellite casinos would cease operations by the end of the year. Two of the satellite casinos will be acquired and re-operated by SJM, while the others will officially exit the market. According to the Macau SAR government's regulations, after the closure of the satellite casinos, their gambling tables and staff will return to SJM Holdings.
This industry-viewed "inevitable outcome" of the satellite casinos' exit has a far-reaching impact, far exceeding the shock of the VIP rooms' closure three years ago. A local remarked, "Thousands of employees are involved, the surrounding business ecosystem is also affected, and most importantly, a group of Hong Kong and Macau tycoons will completely exit the Macau gambling stage."
On July 28, when the Hong Kong stock market opened, Macau gambling stocks welcomed a significant surge, especially SJM Holdings, which at one point rose more than 11%. Since the announcement of the satellite casinos' closure in June, the stock price has accumulated a rise of over 40%. UBS released a report stating that despite being affected by a typhoon, Macau's daily gambling revenue in July still grew by 14% year-on-year, exceeding market expectations. At the same time, the Thai government withdrew the casino legalization bill, which undoubtedly acted as a strong tonic for Macau's gambling industry, avoiding intensified regional competition.
Macau's "Entertainment Tycoons" and "Jianghu Intrigues"
When it comes to Macau casinos, many people's understanding begins with Hong Kong gambling movies such as "God of Gamblers" and "Gambling Hero." Charles Heung's role in the movies as "Dragon Five" also reflects his real-life experiences in Macau casinos. In 1995, Charles Heung, in partnership, was about to open the Casa Real Hotel casino when it was forcefully intervened by Macau gang leader "Broken Tooth Koi" Wan Kuok-koi. Wan Kuok-koi was an important figure in Macau's 14K triad and has often been the "prototype" in films and TV dramas.
Wan Kuok-koi was a formidable opponent of "Casino King" Stanley Ho, challenging multiple fronts with his influence. After Wan's forceful intervention, Charles Heung was forced to close the casino. It wasn't until 2008 that he returned to Macau with China Star Group, acquiring and renovating the Grandview Hotel, creating the satellite casino "Macau Lan Kwai Fong," which dazzled with stars like Andy Lau and Jet Li on its opening day.
Another entertainment mogul, Albert Yeung, owns the Emperor Palace Casino, which is also part of SJM Holdings, becoming an important part of the satellite casinos.
Macau casinos are not a risk-free profitable business; their internal rule design itself ensures the casino's profit advantage. For example, in Baccarat, casinos use methods like "Lucky 6" to ensure long-term revenue; some satellite casinos still maintain the traditional practice of extracting a 5% commission, allowing gamblers to win, but the casino always holds the advantage.
"Jianghu" Figures and Macau Casino Disputes
Apart from entertainment tycoons, Macau's casino jianghu also involves the participation of "underworld" forces. Wan Kuok-koi once dominated forcefully, backed by the so-called "Big Sister" Situ Yulian. Situ Yulian not only had significant influence in the gambling world but also founded the VIP room "Diamond Hall" with Stanley Ho's support, which later developed into the Diamond Casino, ceasing operations in 2021 due to the pandemic's heavy impact.
Wu Wenxin, once known as "Red Powder Partner" with Situ Yulian, also ventured into Macau casinos. The automatic rifle shooting incident at the New Century Hotel on the eve of its opening in 1997 shocked Hong Kong and Macau, and in 2012, Wu Wenxin was beaten up in his Greek Mythology Casino, becoming one of the most sensational violent incidents in Macau after its return to China. In 2016, the Greek Mythology Casino was ordered to close due to operational issues.
As the Macau government intensified its crackdown on gangs after the return to China, the dark forces in the casino jianghu were gradually cleared, significantly improving security and enhancing Macau's reputation.
The "Three Big Heads" of SJM and the Evolution of Satellite Casinos
Before the gambling rights were opened in 2002, SJM monopolized the market, and operating a casino required cooperation with SJM. Under Stanley Ho, the "Three Big Heads"—So Shu Fai, Chow Kam Fai, and Lee Chong Kuong—became important promoters of Macau's gambling industry. So Shu Fai, known as the "Grand Scholar" of the Ho family, served as the CEO of SJM Holdings for a long time, managing many businesses; Chow Kam Fai, known as "Smart Star," developed the "stacking boy" system; Lee Chong Kuong was Stanley Ho's loyal right-hand man, once managing the Macau Jockey Club.
Their satellite casinos, such as the Casa Real, Ponte 16, and Landmark casinos, occupied important positions in Macau's gambling landscape. Today, Ponte 16 and the Grand Lisboa casinos have been acquired by SJM Holdings, and Macau's Casa Real is gradually exiting.
The Exit of Tycoons and Asset Realization
After the opening of gambling rights in 2002, a group of Hong Kong and Macau tycoons entered the satellite casino market. Charles Heung's Macau Lan Kwai Fong was sold to Golden Dragon Group in 2017, whose owner, Chen Mingjin, was known as the "Satellite City Casino King," owning the most satellite casinos. Before the pandemic, Chen Mingjin planned to participate in the new gambling license bidding, potentially forming a powerful bidding force with other tycoons, but the pandemic forced his casinos to transfer or close, and Chen Mingjin also retired from his tumultuous past.
Real estate tycoon Zhong Xiaojian, through the Orient Group, spent HK$4.6 billion to acquire the Landmark Casino, attempting diversified operations, but the challenges brought by the pandemic also made many tycoons' lives difficult. Ady An's husband, Chen Ronglian, got involved in a scandal after investing in Macau's Casa Real, and in 2022, he was sentenced, with Lee Chong Kuong's son taking the helm, representing the relay of a new generation of power.
The Future of Satellite Casinos: Change and Hope
As of mid-July, some satellite casino employees are still uncertain whether they will close by the end of the year, and management is actively communicating with SJM. Affected by the new gambling law, the traditional "revenue-sharing" model is restricted, and satellite casinos are trying to switch to a "management fee" model, but this poses significant risks for SJM, and balancing interests becomes key.
Today's Macau gambling industry landscape is no longer dominated by the "Casino King" alone; Galaxy Entertainment, Wynn Macau, and Sands China all hold leading positions in the market. As core resources, the gambling tables and staff of satellite casinos returning to SJM could potentially improve efficiency through centralized management.
Satellite casino facilities are outdated and management is lagging, showing significant gaps compared to modern integrated resorts. Resorts generally use electronic scoring gambling tables, and their public relations services are professional and do not actively solicit tips, winning the trust of high-end customers, while satellite casinos still rely on traditional methods, and their service habits are hard to change, affecting the inflow of high-end customers.
Although the closure of satellite casinos will impact surrounding shops and employment, from a longer-term perspective, the transformation of Macau's gambling industry helps promote the diversification of urban industries and the healthy development of the economy. Integrated resorts combining gambling, consumption, entertainment, and culture have become the mainstream direction for Macau's future.
Conclusion: The Resurgence of the Gambling Industry, Where Will Macau Go from Here?
From the closure of VIP rooms to the exit of satellite casinos, Macau's gambling "big shots" are leaving one after another, and the casino ecosystem is undergoing fundamental changes. The market's reshuffling means that only enterprises with more professionalism, standardization, and innovation capabilities can continue to exist and develop in this gambling city.
Macau is welcoming a new era of gambling industry transformation. How to find a balance between government regulation and market demand, how to disengage from past "jianghu" disputes, and how to build a diverse, healthy, and sustainable gambling entertainment industry are major tasks facing Macau. The cards on the gambling table are still being dealt, and who will become the ultimate winner? This transformation is far from over, and Macau's story is still being written.
