According to authorities, gross gaming revenues next year will remain lower than 2019 numbers as the economic crisis persists.
Macau.- The SAR has forecast that casino gross gaming revenue (GGR) for 2021 might only reach MOP130 billion (US$16.28 billion). That’s 44.5 per cent of 2019′s MOP292.5 billion.
The government attributes the scenario to the current economic conditions, which are likely to persist. According to the document that presents the city’s budget proposal for the fiscal year 2021, “the recovery will take time”.
The city’s budget proposals are typically conservative when forecasting the community’s aggregate take from gambling operations in the following 12 months.
The 2021 budget plan, which will be debated in the city’s Legislative Assembly soon, said that Macau’s take from gaming tax proper, levied at 35 per cent of gross gaming revenue (GGR), is expected to reach MOP45.5 billion for the fiscal year 2021.
Other charges levied on GGR take the effective local tax rate on gaming to nearly 40 per cent, although the difference is not reflected in the city’s fiscal budget.
Authorities said the city faced a risk of structural fiscal deficit, as Macau has a narrow tax base and increasing expenses but no rise in income.
The budget proposal says the city needed to draw MOP26.58 billion from its fiscal reserve to sustain a fiscal balance.