Doubts around the impact of Macau’s increase on GGR tax

According to some analysts, the proposed new tax liability was unexpected and could generate uncertainty in current and potential investors.

Macau.- “What else could happen?” That’s what casino operators and investors are wondering according to gaming analyst Ben Lee after Macau’s new draft gaming legislation was amended to increase indirect taxes in Macau.

The Legislative Assembly’s final draft of Macau’s general gaming law amendment proposes to raise the current tax on gaming revenue. The extra funds would be donated to fund the cultural, social, economic, educational, scientific, academic and charitable activities.

Lee told Macau Business: “If we look at it as an additional 1 per cent from the current 39 per cent, it’s not a big deal. However, as the increase came without warning, potential new investors will wonder ‘what else could suddenly come?’.”

According to the new law, casinos could be exempt from paying the extra levies if they can show they have attracted players from other jurisdictions. However, Ben Lee pointed out that with the exception of baccarat in large gaming rooms, casino operators are currently unable to determine the income of individual players.

Additionally, the analyst said he believes the discount may not be enough to encourage investment in new markets. The Legislative Assembly will hold a plenary meeting, likely on June 21, to vote on the new legislation.