Content Writer: Janice Chew • Wednesday, 25/10/2025 - 16:37:15 - PM
Macau Legend Development is reportedly weighing the possibility of terminating its service agreement for Legend Palace Casino ahead of its scheduled expiry, signalling a shift in strategy as Macau phases out satellite casino operations. The existing agreement, under which Legend operates the casino through SJM Resorts S.A., is set to lapse on 31 December 2025.
The move comes amid mounting financial pressures: in its interim reporting, Macau Legend flagged a HK$1.42 billion net loss for the first half of 2025, largely driven by a HK$1.29 billion impairment tied to Legend Palace and the nonrenewal of its service agreement with SJM. Even excluding impairment and tax effects, the company warned of a further HK$23 million loss year-on-year as gaming revenues and adjusted EBITDA declined.
Beyond its own challenges, Macau Legend is navigating an industry undergoing major restructuring. Macau’s government has mandated the closure or conversion of most satellite casinos by end-2025, with operators encouraged to absorb staff and redeploy gaming assets into main integrated resorts. In recent months, several satellite venues have already closed prematurely under pressure from mass staff resignations—especially from sales, marketing, and PR roles— casting doubts on the sustainability of operations at remaining satellites.
If Macau Legend proceeds with an early exit from the deal, it would likely accelerate the shuttering of Legend Palace and conclude its footprint in Macau’s satellite casino arena. That said, any such decision would need to navigate regulatory approvals and transitional arrangements, particularly concerning staffing, asset reallocation, and obligations under Macau’s gaming framework.