Macau expecting reduced aggregated gross gaming revenues for 2020

In Macau and government officials have reportedly announced that they expect the city’s collection of almost 40 casinos to chalk up aggregated gross gaming revenues of about $32.2 billion for the entirety of next year.

According to a report from GGRAsia, this prediction was contained within the enclave’s draft budget for 2020 and would see tax revenues amassed from gaming for the twelve-month period remain relatively static at approximately $11.3 billion.

Autumnal anguish:

Macau recently recorded aggregated gross gaming revenues for the ten months to the end of October of just over $30.6 billion, which represented a deterioration of 1.8% year-on-year, while GGRAsia reported that such annual predictions ‘are usually conservative’ in their nature and normally underestimate the eventual final figure ‘by a wide margin’.

Duty dimension:

Home to some of the world’s largest and most famous gambling venues including the iconic Casino Grand Lisboa from SJM Holdings Limited alongside Melco Resorts and Entertainment Limited’s $3.2 billion Studio City Macau, Macau reportedly requires operators to pay a 35% gross gaming revenues tax alongside smaller duties for every live dealer table, gaming machine and VIP room they operate to take the effective rate up to roughly 39%.

Failing future:

Macau recorded almost $37.5 billion in aggregated gross gaming revenues for the entirety of 2018, which equated to a 14% increase year-on-year, while the figure for the current twelve-month period is widely expected to disappoint by finishing just short of $36 billion. The former Portuguese territory recorded an eventual tally of $32.9 billion for 2017 although financial services firm Fitch Ratings Incorporated declared that it expects only ‘low single-digit growth’ next year.