Macau, 31 August 2025 — SJM Holdings confirmed during its recent earnings call that it remains in discussions to acquire two of its satellite casinos—Ponte 16 and L’Arc Macau—as part of a broader strategy to comply with Macau’s regulatory deadlines and restructure its operations. The company clarified that while no formal agreements or pricing timelines have been set, any potential deal would need to be finalized by year-end in line with regulations.

This update coincides with SJM’s agreement with its parent, STDM, to acquire 7,504 square meters of space at Hotel Lisboa on the Macau Peninsula. The plan is to relocate gaming tables and slot machines from closing satellite properties to this newly acquired space.

Why This Matters

1. Tightening Regulatory Deadline

   • Macau’s amended gaming laws require concessionaires to either solidify ownership or cease operations of satellite casinos by 31 December 2025.

   • SJM plans to close nine of its satellite casinos by year-end—retaining only Ponte 16 and L’Arc Macau, pending acquisition.

2. Operational and Financial Implications

   • JP Morgan warns that SJM’s satellites form a sizable portion of its business—around 11% of 2Q25 EBITDA—which raises concerns about profitability if the acquisitions don't materialize or market share drops.

   • While acquiring these properties might bolster SJM’s asset base, Seaport Research Partners forecasts a market share decline to the low 11% range in 2026–2027, down from 12.3% in Q2 2025.

3. Strategic Redeployment

   • Earlier in July, SJM closed Casino Grandview, the first of its satellite properties to shutter, transferring staff and gaming assets to other SJM properties. 

   • The Hotel Lisboa acquisition is part of the broader strategy to relocate gaming operations into more efficient, company-owned venues.

4. Employee Protections and Market Dynamics

   • Across the industry, satellite closures are affecting thousands of jobs. Macau authorities and operators—including SJM—have pledged to reassign affected employees to other properties.

   • Despite potential disruption, market analysts suggest the moves are manageable; Fitch Ratings remains confident in SJM’s credit profile, noting that EBITDA impact may be offset by earnings from newly incorporated assets.

The corporate strategy is clear: consolidate gaming operations, reduce reliance on third-party venues, and streamline costs via company-controlled properties. Success will depend on executed acquisitions, efficient reallocation of assets, and retaining both customers and workforce through the transition.