Rio Entertainment Ltd, the company responsible for the Rio Hotel has published an advertisement in which it states that gaming operator Galaxy Entertainment Group never attempted to negotiate a possible renewal of the cooperation agreement that could allow its casino to continue operating.
As reported yesterday, Galaxy will close the three satellite casinos under its gaming license and City Club brand at the Rio, President and Waldo hotels, with respective staff to be transferred to other properties within the group.
These three casinos employ around 600 employees, most of them employed at the Rio and Waldo casinos.
While the Rio and President casinos have suspended operations since June 15, TDM Radio reported that Waldo has already submitted a request to do the same by the end of the month.
In a half-page ad published in the Chinese-language newspaper Macao Daily today (Friday), Rio Entertainment Ltd claims to have received a notice from Rio Casino months ago that GEG had terminated operations and proposed to close it on June 15 before the concessionaire license expiration deadline on June 26, 2022.
The current six gaming concessions and sub-concessions were all slated to finish on June 26 but a six-month extension has already been agreed upon by Macau SAR authorities to allow for the new gaming law amendment to be passed and a new gaming license tender to be carried out.
As reported by Allin Media earlier this month, Galaxy allegedly expressed its willingness to continue the exploration of gaming activities in Rio and Waldo under the model of leasing establishments, however, the proposed rent was said to be too high, which prompted Galaxy to not accept the renewal.
“During the process, the concessionaire never negotiated with our company to approve the renewal of the cooperation, and never proposed to the company to lease the space to continue operations, so rumours suggesting the landlord’s rent demand was too high are fake,” Rio Entertainment says in the add.
The company then proceeds to “thank the public, customers and people from all walks of life for their love and support of Rio Casino over the years”
The 450-room Rio Hotel in the NAPE area was founded by Rio Hotel Limited in 2006, with local property tycoon Loi Keong Kuong as the largest single shareholder of the firm.
Loi has also been involved in the development of the luxury housing complex One Grantai on the mountain Taipa Grande.
Company records show real estate businessman Sio Tak Hong had been involved in the board of shareholders and administration of the company in its early stage but he had left the firm before the opening of the property.
A previous Exmoo News report suggested that The Rio Hotel in NAPE was placed for sale for MOP2 billion (US$247 million) together with its casino by a local consultancy agency.
Last month, the Rio Hotel Macau Sauna Place also stopped operating and its employees were dismissed with a severance package, according to a report by online media Allin news.
Several satellite casinos were rumoured to be closed after new changes were announced as part of a future amendment to the current gaming law, with the closure of Rio and President the first to actually take place.
The first draft of the gaming law amendment stated that in a transitional three-year transition period, casino properties owned by independent investors would have to either be acquired by any of the six prospective concessionaires or be permanently closed.
Chinese language newspaper Macao Daily News reported on March 24 that seven satellite casinos were planning to stop operations by mid-year, due to the tightening of visa applications to Macau, lack of cash flow, and the negative impact of the repeated pandemic outbreaks, with four of the casinos set to be closed were said to be linked to Chan Meng Kam’s Golden Dragon Group.
The President of the Macau Association of Gaming and Entertainment Promoters, Kwok Chi Chung, also indicated to have received information that six to eight satellite casinos are expected to cease operations by the end of June.
However, under a new draft bill version later provided by authorities, even if the property where the satellite casino is located is not fully transferred to the gaming concessionaire, the casino could still continue operating as a managing entity, if a contract is established with the operator and approved by the Chief Executive.
The current companies responsible for satellite casinos at the moment will then have three years to establish a contract with a concessionaire and continue running the property.
Still, under the new regulations, these managing entities will only be able to charge managing expenses and will not be allowed to share a percentage or commission of gaming revenues.
The Grand Emperor Hotel casino was previously set to close on June 26 but after an agreement between the hotel owner Emperor Entertainment Hotel Limited and concessionaire SJM, the casino will continue operating until December 31.
Two satellite casinos at Macau Fisherman’s Wharf will also continue their operations at least until December 31, as the agreement with gaming concessionaire SJM has also been extended for six months, Macau Legend CEO Melinda Cha, revealed previously.
The final version of the gaming law amendment is expected to be sent to the plenary for voting the soonest on June 21.
