The expected gross gaming revenue will be calculated based on each casino operator’s maximum number of gaming tables and slot machines.
Macau.- Casino operators in Macau are set to be given minimum annual casino gross gaming revenue (GGR) targets, according to proposed amendments to the gaming regulatory framework. It appears that if operators fail to meet their target, they will be required to make up the shortfall in gaming tax expected by authorities.
The GGR target will be calculated based on the maximum number of gaming tables and gaming machines each gaming concessionaire is permitted to operate. The bill states that the city’s chief executive will set the minimum GGR that each table or machine should generate each year.
If a casino operator fails to meet that target it must pay the government a sum equal to the difference between the tax paid by the concessionaire for its actual GGR and the tax it would have paid if its minimum GGR target was met. The gaming table capacity may be lowered if an operator fails to meet its GGR target in two consecutive years.
However, analysts at JP Morgan Securities say they “don’t think the target amount will be too onerous.”
Then added: “The provision is probably… to improve overall efficiency of table utilisation, as most properties were meaningfully underutilised, even pre-Covid.”
According to Macau Business, casino operators will also be required to develop an annual responsible gaming promotion plan. The plan will have to be reviewed by the Gaming Inspection and Coordination Bureau (DICJ) the year before its enforcement.
Macau reported full-year gross gambling revenue of MOP86.86bn (US$10.82bn) in 2021, up 43.7 per cent when compared to 2020.