Melco Resorts & Entertainment has announced plans to close its satellite venue, Grand Dragon Casino, and three Mocha Club locations in Macau before the end of the year.
This decision was formed based on strategic considerations and recent amendments to Macau’s gaming regulations.
The closures will specifically impact Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel but employees currently working at these venues will surprisingly not face job losses, as Melco confirmed they will be reassigned to roles at other properties within the company’s Macau portfolio.
Gaming tables and electronic machines from the closing venues are also expected to be redistributed to Melco’s other gaming facilities across the city.
Melco, however, intends to retain operations at three additional Mocha Clubs, namely Mocha Inner Harbour, Mocha Hotel Sintra, and Mocha Golden Dragon.
However, in order to continue these operations past the end of 2025, Melco has initiated the process to secure required authorizations from the Macau SAR Government.
This process hasn’t concluded yet but with Melco being so on the ball with this regulatory framework, it’s fair to say that the proper due diligence will be done to hopefully get these new venues over the line.
Why close venues now?
These closures are a direct response to Macau’s amended Gaming Law of 2022, which mandates satellite casinos to transition from a revenue-sharing model to a management fee arrangement by January 2026. Additionally, under these new regulations, casinos must operate within properties directly owned by the concessionaire.
Melco is the first among Macau’s three concessionaires that manage satellite casinos to formally announce compliance measures in line with the updated regulatory framework.
Currently, Macau hosts 11 satellite casinos, with nine operated under SJM Resorts coupled with Melco and Galaxy Entertainment Group sharing the remainder.
The government’s three-year grace period, designed to facilitate a smooth transition to the new regulations, will expire at the close of this year, prompting those who need to make adjustments to finalize and announce their compliance strategies.
