Macau expects to collect just US$1.25m in taxes from junket commissions in 2023
The figure would represent a 76.7 per cent year-on-year drop from the MOP43m in fiscal-year 2022.
Macau.- The Macau government estimates that next year it will only collect MOP10m (US$1.25m) in taxes on the commissions that junkets receive from casinos. The figure is 76.5 per cent less compared to the current fiscal year, when authorities expect to collect MOP43m.
The government of Macau has published its fiscal budget plan for 2023, predicting GGR of MOP130bn (US$16.08bn). Authorities predict a fiscal deficit for 2023, with an aggregate income of MOP69.5bn excluding any withdrawals from fiscal reserves, including a near-40 per cent share of gaming revenue.
Junkets are licensed by the Macau government to promote VIP gaming in casinos in the city. Their services include arranging gambling credits for players, recovering losses caused by high bets and organising player accommodation.
A 5 per cent withholding tax is levied on commissions paid by gaming operators to junkets. However, the number of junket licences has decreased in recent years, with the number of operators licensed to conduct business in Macau falling by 45.9 per cent over the last 12 months from 235 in 2013 to only 36 in January 2022. The number of licensed junkets in Macau has declined for the ninth consecutive year.
The crisis deepened after Alvin Chau Cheok Wa, CEO of Suncity Group Holdings, was arrested over cross-border gambling and money laundering accusations. Casinos terminated arrangements with junkets as a result. The judge presiding over the trial has set January 18, 2023, as the date for the verdict.
Legislative Assembly approves Macau junket bill
Today, the Legislative Assembly voted to approve Macau’s new junket legislation. The bill allows junket operators to each work with only one casino operator. Individuals will no longer be licensed as intermediaries; only companies incorporated in Macau.
All junket applications will be decided by the minister of commerce and finance rather than the gaming regulator, the DICJ. Junket operators and agents must open accounts with gaming franchises to deposit cash and chips. The funds must be owned by an intermediary or agent.
Another licensing condition is that junkets must hold MOP10m (US$1.24m) in share capital in addition to a bank guarantee.
