As part of new casino concessionaire licensing legislation and the government of Macau has reportedly set minimum gross slot and gaming table revenue requirements in hopes of being able to better guarantee its annual tax receipts.
According to a Friday report from Inside Asian Gaming, the move detailed by the Chief Executive for the former Portuguese enclave, Ho Iat-Seng, will limit the city’s licensed casinos to a maximum aggregated limit of 12,000 slots and 6,000 gaming tables from the first day of January. The source explained that every one of these units will subsequently also be required to generate annual revenues of about $37,100 and $866,000 respectively or risk being compelled to pay ‘a special premium’ equal to the difference between the recorded and mandated amounts.
Macau is home to almost 40 casinos operated by SJM Holdings Limited, Galaxy Entertainment Group Limited, Melco Resorts and Entertainment Limited, MGM China Holdings Limited, Sands China Limited and Wynn Macau Limited. Each of these companies is reportedly expected to take part in an upcoming re-tendering campaign under the terms of recently-ratified legislation in hopes of having their existing concessions extended by a further ten years to January of 2033.
Inside Asian Gaming reported that the overall tax rates for Macau’s many casinos are not expected to change so as to continue a regime that sees these facilities subjected to a 35% gross gaming revenues toll alongside smaller duties for every live dealer table, gaming machine and VIP room they operate. However, the new legislation was moreover passed in the midst of a coronavirus-induced economic downturn that purportedly prompted the government to include measures designed to keep its coffers full and encourage concessionaires ‘to make good use of the approved gaming tables and gaming machines’.
Reportedly read a Friday statement from Ho…
“The total number of gaming tables and gaming machines to be granted for new gaming operations starting from early next year will be capped according to the actual number of gaming tables and gaming machines in operation in Macau. If the average gaming revenues of concessionaires’ gaming tables or gaming machines does not reach the lower limit, concessionaires shall pay a special premium equal to the difference between the average gaming revenues of the concessionaires’ gaming tables or gaming machines and the lower limit.”
Inside Asian Gaming forecast that Macau could end up recording aggregated minimum annual gross gaming revenues just north of $5.6 billion should it consequently license the maximum tranche of 12,000 slots and 6,000 gaming tables. Nevertheless, this figure would purportedly be almost half the around $10.7 billion generated for the whole of 2021 and equate to an 84% drop when set alongside the roughly $36.2 billion that was chalked up for the entirety of pre-pandemic 2019.