Macau gaming operator SJM Holdings has officially withdrawn its plan to acquire Ponte 16, one of the city’s last remaining satellite casinos. The decision follows a sharp 91% decline in the company’s net profit for the third quarter, prompting a strategic re-evaluation of long-term investments and operating priorities.
In a statement released on Wednesday, SJM said it conducted a “comprehensive business review” and decided not to pursue the acquisition. As part of the termination agreement with Pier 16 Entertainment Group Corp, in which SJM owns a 51% stake, Ponte 16 will shut its doors at midnight on 28 November. The casino’s gaming machines and tables will be redistributed to other SJM-operated properties across Macau.
The company added that employees directly under SJM Resorts Ltd would be “reassigned to other casinos,” while workers under other entities within Ponte 16 may apply for open positions within the group.
This move comes as Macau’s amended gaming laws push satellite casinos to convert from a profit-sharing model to direct ownership under licensed concessionaires by 31 December. Once restructured, revenue for these properties will come from management fees instead of shared gaming income.
Although the Ponte 16 acquisition has been cancelled, SJM confirmed that its deal to acquire L’Arc Macau remains on track. SJM recently signed an agreement to purchase Arc of Triumph Development Co Ltd for HKD$1.75 billion (US$225 million). Chairwoman Daisy Ho described L’Arc Macau as a strong but underutilized property with significant potential for growth through consolidation and operational streamlining.
Macau’s Chief Executive Sam Hou Fai emphasized that the closures of satellite casinos should have limited financial system impact, as loans to such operators make up less than 1% of total bank lending. However, industry analysts warn the shutdowns may reduce foot traffic and consumer spending in surrounding neighbourhoods, potentially affecting local businesses and property values.
