SJM to absorb workers left unemployed by satellite casino closures

SJM Holdings has said that workers affected by the closure of satellite casinos linked to the company will not be left without work.

Macau.- SJM Holdings’ executive director Angela Leong On Kei has said the casino operator will take care of employees who may be affected by the closure of satellite casinos linked to the company. Of the 18 satellite casinos in Macau, 14 operate under the licence of SJM Holdings Ltd while the other four are tied to Galaxy Entertainment Group (GEG) and Melco Resorts and Entertainment Ltd.

Last month, Emperor Entertainment Hotel Limited announced the closure of its casino at the Grand Emperor Hotel due to the difficult business operating environment caused by the Covid-19 pandemic in the last two years. The company had a service contract with gaming franchisee SJM, which expires on June 26.

Despite this, SJM says it remains optimistic about the future of Macau. Macau’s Labor Affairs Bureau (DSAL) said SJM had to take the necessary diligence to safeguard the rights of dismissed workers.

The Macau Gambling Law Amendment allows satellite casinos to continue operating even if the property on which they are located is not wholly owned by the gambling franchisee. The draft was changed due to concerns it could cause some satellite casino owners to withdraw from the market, leading to job losses.

SJM Holdings GGR down 4.2% in Q1

SJM Holdings has posted a loss of HK$1.28bn (US$163.4m) for the first quarter of the year. That compares with a loss of HK$647m in the same quarter last year. Gross gambling revenue for the quarter fell 4.2 per cent year-on-year to HK$2.54bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at negative HK$474m.

In the first three months of the year, SJM’s VIP gaming revenue was HK$344m, down 29.1 per cent year-on-year. Gross gaming revenue for the mass market was just under HK$2.06bn, up 0.3 per cent year-on-year. Slot machine GGR totalled HK$139m, an increase of 19.5 per cent year-on-year.