Abstract
This article examines the gaming policy, regulation, and operation of satellite casinos in Macau. Satellite casinos are gaming establishments administered by authorized operators but owned and managed by third parties. Acting as service providers, satellite casino owners assume the day-to-day casino management and are entitled to an apportionment of the gross gaming revenue. As a legacy of the former casino monopolist, satellite casinos have proliferated after the Macau gaming industry was reformed in 2001. This study reviews Macau satellite casinos from both regulatory and operational perspectives. The establishment and operation of such casinos are found to be opaque, and the city's casino concession system is susceptible to exploitation. It is also argued that the gaming authorities should exercise full and direct control over satellite casinos. With the recently proposed amendment to the Macau gaming law, third-party involvement in gaming operations is expected to be outlawed. This article concludes with some cautions concerning the effect of the forthcoming law changes on satellite casinos.
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