Macau gaming tax revenue down 37.1 per cent in year to date

Gaming tax revenue is down 37.1 per cent year-on-year.
Gaming tax revenue is down 37.1 per cent year-on-year.

Tax revenue from gambling activities in Macau was MOP13.96bn (US$1.73bn) for the first seven months of this year.

Macau.- The Financial Services Bureau in Macau has shared a financial report showing that the city collected MOP13.96bn (US$1.73bn) in fiscal revenue from direct taxes on gaming in the first seven months of the year. That’s a drop of 37.1 per cent when compared to the same period in 2021.

Macau’s GGR for the first seven months of 2022 stands at MOP26.6bn (US$3.29bn), down 53.6 per cent year-on-year. GGR for July was the lowest since 2003 when city authorities began publishing monthly figures.

In Macau, casino GGR is taxed at 39 per cent – 35 per cent in direct government taxes and the remainder from community levies. Authorities have revised down their forecast for gaming taxes for the full year to MOP34.37bn from just under MOP49.76bn. To date, the city has reached just 40.6 per cent of the revised figure.

Macau’s gaming industry won’t see stable results until 2023, analyst says

Although recent weeks have seen a small improvement compared to last month, Andrew Lee, an analyst at investment banking company Jeffries Group, believes Macau’s gaming sector will not see stable financial results until 2023.

Macau’s casinos reopened on July 23, but operating restrictions, including staff and guest capacity limits, remain in place and the number of visitors remains limited. Lee said that Macau visitor numbers will remain low amid concerns about further quarantine measures.

In July, analysts at JP Morgan Securities published a report estimating that Macau casino operators will end the year with approximately US$800m in EBITDA losses due to the latest outbreak of Covid-19 cases.

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