Ambrose So Shu Fai, vice chairman and chief executive of gaming operator SJM Holdings, has confirmed earlier reports by Allin Media that the company is negotiating with its 14 satellite casinos for a bigger share of gaming revenue.
Mr So said the move was necessary in the wake of spiraling operating expenses and depressed business volume due to the COVID-19 pandemic, according to Hong Kong news outlet Ming Pao.
SJM is seeking to increase its share in the satellite casinos’ gaming revenue from 45% to 50% starting from next year, informed sources say.
Mr So noted that talks were still under way and he emphasized that the company’s partnership with satellite casinos were founded on mutual consent and understanding.
He pointed out that gaming operators were facing tougher conditions than satellite casinos since the former could not lay off employees and had to pay for all daily expenses as usual,
SJM reported a first-half net loss of nearly HK$2.76 billion, compared to a loss of HK$1.47 billion in the same period of 2021.
But Mr So said the company was committed to bidding for one of Macau’s 10-year gaming concessions that would run from next year.
Macau’s current six gaming operators are expected to bid for the new 10-year gaming rights. The deadline for tender submission is 14 September.