Some Macau junket operators are reporting the return of a 5 percent commission tax on revenues.
Kwok Chi Chung, president of the Macau Association of Gaming and Entertainment Promoters, told Inside Asian Gaming that the tax waived under former Chief Executive Fernando Chui has been reinstated.
Under the city’s newly amended gaming law, junkets earn 1.25 percent commission on rolling chip turnover from their concessionaire partners. That sum is subject to the tax and is payable to the local government on a monthly basis.
“The tax has always existed, but the previous Chief Executive had granted a waiver of the tax,” said Kwok. “And now the government is reintroducing it.
“The tax has definitely had an impact on the revenue of junkets and will reduce their income,” he said, “but it is not a new tax. There are many taxes that have been exempted in Macau in the past, such as the tourism tax.”
Kwok added that junket revenues rose appreciably in January; the city’s Gaming Inspection and Coordination Bureau (DICJ) corroborated that assertion, reporting that GGR for the month amounted to MOP$11.58 billion (US$1.43 billion), the highest figure in three years.
“Junkets are engaged in a business governed by the new gaming law and the industry is adapting to the operation mode under this new law, but all in all there was good business in January,” Kwok said.
“The MOP$11.58 billion in gaming revenue also exceeded estimates, indicating that Hong Kong’s customer base is making a significant contribution to gambling revenue. Junkets saw a significant increase in rolling chip turnover in January, with both mass and premium mass customers increasing significantly.
“However, with fewer days in February and a drop in mainland visitors after the Chinese New Year holidays, gambling revenue will definitely be lower in February than in January.”
With package tours from Mainland China back in business, tourism should continue to rebound. Groups may visit from all mainland provinces, said Macau Government Tourism Office Director Maria Helena de Senna Fernandes. Travel has also resumed from Hong Kong.
