Macau: tax burden to be reduced if casinos attract foreign players

Legislator Chan Chak Mo has said casino operators could ease their tax burden if they can attract customers from jurisdictions other than mainland China.

Macau.- Sharing more details on proposed amendments to the city’s gaming law amendment bill, Legislator Chan Chak Mo has said that Macau is willing to consider reducing the gross effective tax rate on casino gross gaming revenue (GGR) by as much as 5 percentage points if casinos can attract players from outside China.

Macau’s GGR tax is 35 per cent of gross income, but there are additional taxes of up to 5 per cent on gross income for social and other purposes. If this proposal advances, casinos could be exempt from paying that extra 5 per cent. However, there was no explanation of how the plan would work in practice.

According to local media reports, Chan stated: “Macau’s positioning is to be a world centre of tourism and leisure… Now it is time to expand into other, foreign markets.”

The amendments to the gambling law are due to be voted on in June ahead of a new public tender for gaming rights in Macau. The proposed legislation sets out a gaming concession period of up to 10 years that can be extended for a further three years in exceptional circumstances. There would remain up to six concessions but the current sub-concession system would end.