Macau casino shakeup: Melco to Close Grand Dragon, Mocha Clubs
Melco Resorts & Entertainment is set to shutter its Grand Dragon Casino, its sole satellite casino, along with three Mocha Clubs venues before year’s end, signaling a strategic shift in Macau’s gaming landscape.
Strategic Closures
Melco will discontinue operations at the Grand Dragon Casino, Mocha Hotel Royal, Mocha Kuong Fat, and Mocha Grand Dragon Hotel before 2026. The decision aligns with the company’s advancement strategy and Macau law, according to a press release. (Gamblingnews.com)
Employee and Asset Transition
Staff from the closing venues will be reassigned to other Melco properties in Macau. Gaming tables and electronic gaming machines will also be relocated to other casinos or gaming areas within the company’s portfolio.
Mocha Clubs’ Future
Melco plans to maintain operations at three Mocha clubs locations-Mocha Inner Harbour, Mocha Hotel Sintra, and Mocha Golden Dragon-and will seek necessary approvals from the Macao SAR Government. (GlobeNewswire)
Regulatory Changes Drive Decisions
Melco is the first of three concessionaires to reveal plans for its satellite casinos, responding to new government restrictions taking effect on January 1, 2026. These rules mandate that casinos must be located in properties owned by the concessionaire and eliminate revenue-sharing agreements, replacing them with management fees.
Grace Period Ending
A three-year grace period, designed to allow stakeholders to adapt to the changing regulations, will expire at the end of this year. Currently,Macau has 11 satellite casinos: nine operate under SJM Resorts,and one each under Melco and Galaxy Entertainment Group. (Gamblingnews.com)
Capital allocation Strategy
melco is shifting its strategy to prioritize operating casino floors within integrated resorts, rather than constructing large-scale properties. Capital spending for 2025 is set at $415 million, with Macau remaining a key focus. (Gamblinginsider.com)
The Macau government collected approximately 39.6 billion patacas (US$4.9 billion) in gaming taxes in 2024, demonstrating the region’s continued reliance on the gaming industry for revenue (Statista 2025).
