An executive order published in the Official Gazette imposes new limits for casinos from next year.
Macau.- An executive order published in the Official Gazette on Friday (August 26) has set the maximum number of gaming tables and slot machines allowed in casinos from. The maximum number of gaming tables across all casinos will be 6,000 while the maximum number of gaming machines has been set at 12,000.
The government has also set the minimum annual gaming revenue expected from each gaming table at MOP7m(US$875,000), and the minimum from each machine at MOP300,000. If concessionaires are unable to meet the minimum revenue requirements, they will have to pay the government a premium for the difference between the actual revenue and the required minimum.
As of the end of June, there were 6,006 gaming tables and 12,042 slots in Macau. Prior to the pandemic, the number of gaming tables amounted to 6,739 and the number of slots 17,009.
Macau’s new gaming law was approved in June and allows up to six gaming concessions with a length of 10 years with the possibility of a 3-year extension. It requires operators to pay a direct gaming tax of 35 per cent and a flat tax of 5 per cent for social welfare and urban development in Macau – an increase of 1 per cent. The 5 per cent indirect tax can be reduced if operators manage to attract more foreign players to their casinos.
Major changes require casinos to be run on assets owned by gaming operators. However, authorities have extended the original three-year grace period to allow satellite casinos to resolve ownership issues.
Casino operators are also required to have a registered capital of at least MOP5bn during the validity of their licences. The concessionaire and anyone holding more than 5 per cent of the operator’s shares must not own, directly or indirectly, the capital of any other concessionaire.
Casino operators could face fines of up to MOP5m (US$620,400) or even the revocation of licences if they fail to report major financial decisions that carry a value higher than the total investment input pledged in their concession contracts.