Macau’s Big 6 casino concessionaires are once more exempt from paying taxes on gambling profits. The exemption, announced January 29 by Chief Executive Ho Iat Seng, originated in January 2023, with the start of the operators’ new 10-year concessions, and will remain in force through December 2027.
According to GGRAsia, operators are still subject to an effective tax rate of 40 percent on gross gaming revenue (GGR) and must pay a fixed annual payment of MOP30 million (US$3.72 million) to the local government.
In addition, each concessionaire must pay a variable annual payment based on gaming inventory: MOP300,000 (US$37,200) for each VIP gaming table; MOP150,000 (US$18,600) for each mass table; and MOP1,000 (US$124) for each gaming machine, a category that includes slots. A special premium will be added if GGR from each table and machine falls below MOP7 million (approximately US$868 million) and MOP300,000 (US$37,200).
Meanwhile, the city’s gaming industry posted a 67 percent year-on-year increase in GGR for January, the result of post-Covid tourism. As reported by Inside Asian Gaming, the Gaming Inspection and Coordination Bureau (DICJ) reported MOP$19.33 billion (US$2.40 billion) in gross revenues for the month. January’s figures were also up 4.1 percent over December, boding well for the Chinese New Year holidays, which began February 10 and continue through February 24.
In 2024, investment bank Morgan Stanley expects total GGR to grow 28 percent to about 80 percent of pre-Covid levels, with greater profitability as the industry shifts its focus from VIP gaming to mass.
In other Macau news, Ryan-Ho, of the Center for Gaming and Tourism Studies at Macao Polytechnic University, recently told Asia Gaming Brief that concerts are now a main driver of visitation, hotel bookings and restaurant revenues. In a 2024 policy statement, Macau set a goal to become a “City of Performing Arts.”
The terms of their concession agreements require the Big 6 to help underwrite new non-gaming attractions in the Chinese city. Collectively, they have pledged MOP108.7 billion (US$13.5 billion) for non-gaming activities next year.
