Owes millions in back dues
The Macau Horse Race Co. Ltd., which runs the Macau Jockey Club, has sent an investment plan to the Gaming Inspection and Coordination Bureau. The plan details MHR’s strategy going forward to pay off millions in outstanding debt to the government and fulfill its newly extended license.
In February the Jockey Club won a 24-year extension of its horse racing monopoly in the territory. A condition of the extension was that it would invest $186 million of its own money to improve club facilities and increase non-gaming venues. It must also pay back more than $18.9 million it owes to the government due to non-payment of dues between 1997 and 2005.
Macau’s Secretary for Economy and Finance Lionel Leong Vai Tac said he asked MHRC in 2015 “to repay the government in 10 years.” It is not known if any payments have been made.
Lawmakers are also questioning an exemption on taxes authorized by the government to the racetrack. Since 2002, the Macau Jockey Club has been exempt from having to pay a fixed annual tax of $3 million.
According to CalvinAyre.com, MHRC may be considering closing down the club. Last year, horseracing accounted for just 0.04 percent of the gross gaming revenue in Macau and MHRC hasn’t turned a profit since 2004.
