SJM Resorts, renowned as Macau’s oldest gambling facilitator, is set to allocate a substantial slice of its non-gaming budget to refurbishing its crown jewel casino resort on the Macau peninsula, the Grand Lisboa.
Previously known as SJM Holdings until a rebrand in 2021, SJM Resorts epitomizes the legacy of Stanley Ho, known as the “King of Gambling,” who monopolized Macau’s casino industry for many years. After Macau’s return to Chinese sovereignty in 1999, the exclusivity of Ho’s gaming empire was disrupted with the government’s decision to welcome more gaming operators into the fold.
After SJM, alongside the five competitors in Macau’s gaming realm including Sands, Galaxy, Wynn, MGM, and Melco, were bestowed with a fresh decade-long gaming license last year, the Macau Special Administrative Region government posed a requirement. Collectively, the six operators were to contrive $13.5 billion worth of non-gaming investments into their resorts. The financial responsibility each operator had to shoulder was calculated based on their 2022 market share.
For SJM, holding just a 12% market share last year, they are tasked to allocate MOP12 billion (US$1.5 billion) for non-gaming expenditures outside their casino premises. Alternatively, Sands, commanding the highest market share at 25%, is burdened with a massive MOP27.8 billion (US$3.45 billion) non-gaming investment.
Despite the shifting focus to the south of Cotai, SJM’s flagship property, the Grand Lisboa, inaugurated in February 2007, continues to stand as a beacon in downtown Macau. Favorable among locals and economical tourists, however, the casino had fallen on hard times with a persistent revenue decline since 2015.
SJM, in an attempt to keep up with competitors, resolved to extend its reach into the realm of Cotai, where a $5 billion sum was expended to construct the Grand Lisboa Palace. Unfortunately, the timing proved unfavorable, as plans for its grand opening in March 2020 coincided with the catastrophic surge of the COVID-19 pandemic.
Despite delays caused by the pandemic, the Grand Lisboa Palace finally opened in July 2021. However, the occupancy rates have been disappointing due to China’s rigid adherence to President Xi Jinping’s “zero-COVID” strategy.
SJM Resorts remains committed to strengthening its presence in Cotai and reclaiming its glory in downtown Macau. They plan on embarking upon a significant renovation of Grand Lisboa early next year. The mission includes updates to all 430 hotel rooms and suites, along with new dining establishments, promising a refreshed customer experience.
The increasing interest in casino gaming and the renovated Grand Lisboa’s potential to reinstate its glory in Macau speaks volumes about the appeal of gambling. Speaking as part of West Island Blog, we’ve seen this growing interest extend to online platforms, as well. More and more curious enthusiasts are venturing online to play at the top-rated operators listed on our website. We invite you to explore the thrills of online gaming, which embeds the glamour of gambling in a high-tech, modern platform. Who knows? You might find yourself favoring the virtual over the physical.
