Macau forecasts no growth in gross gaming revenues for 2020

The government taxes the gross gaming revenues (GGR) of Macau casinos at a rate of 35 percent

Macau.- The Macau Government painted a bleak forecast for next year’s collect in gaming taxes. The estimation is to gain MOP 91 billion (€10 billion), a number that suggests no growth for 2020.

Although the information put the authorities on alert about the current scenario of the gaming business, it seems to be a conservative estimation, something usual in the annual forecasts.

Reports said the Government has already collected more than MOP 85.6 billion (€9.6billion) in gaming tax revenue after the first nine months of 2019. Consequently, it appears that the forecast is underestimating the eventual tallies.

However, Fitch Ratings explained it expects Macau GGR growth to be in the low single digits in 2020, with strength in the mass market offsetting flat VIP growth.

The government taxes the gross gaming revenues (GGR) of Macau casinos at a rate of 35 percent, but other charges raise the tax rate to 39 percent.