Macau casino tax revenue totals $1.73 billion from January to July 2022
Posted on: August 25, 2022, 01:29h.
Last update on: August 25, 2022, 01:39h.
Macau’s casino tax revenue in the seven months of 2022 totaled MOP 13.96 billion ($1.73 billion), down more than 37% year-on-year.
Macau’s six casino operators have seen a mild recovery begin in 2021 after the pandemic’s most limited year in 2020. restrictive measures in response to even small outbreaks of coronavirus, led to a withdrawal of gaming revenue in 2022.
Epidemics on the mainland this year have severely limited travel across the People’s Republic. And Macau’s ongoing quarantine requirements, which were only recently relaxed, have kept the enclave’s casino resorts empty of guests for much of the year.
As a result, the game plummeted again. Seven-month gross gaming revenue (GGR) in Macau was down more than $18.2 billion compared to the industry situation at the same time last year. Macau’s government is also suffering with casinos, as its tax advantage has dropped by nearly $4.5 billion from 2021.
The tax data comes this week from the Macau Financial Services Bureau.
The government draws on the reserves
Casinos are the backbone of Macau’s economy. With gambling almost non-existent, at least by market standards, the enclave government was forced to rethink its spending.
The Bureau of Financial Services says total tax revenue between January and July totaled $2.6 billion, meaning gaming accounted for about 66% of government funding in 2022. But the $2.6 billion doesn’t cover only 44 percent of the special administrative region’s nearly $6 billion spending this year.
Macau, one of the richest economies in the world before the pandemic, has decided to dip into its financial reserves to fill the spending gap of about $3.4 billion. Government officials say the region still retains a reserve of $1.25 billion after the distribution.
The local government, at the request of the Bureau of Financial Services, recently changed its gaming tax forecast for the full year from $6.17 billion to $4.26 billion. Macau levies a 39% GGR tax on five out of six casino operators. SJM Resorts is taxed a little less at 38%, the rebate given to the company due to its former monopoly on casino games in SAR.
Despite the lower gambling tax and the need to use reserves, Macau plans to continue social spending to help residents ease the financial burden of the ongoing pandemic.
Good news was announced by the Macau Public Security Police this week. He said his tally of arrivals and departures for the seven days ending August 24 pointed to a rebound. Total border traffic exceeded two million people.
The number of travelers includes Macau residents traveling to and from the mainland. But border officials say more than 207,000 non-resident border crossings were counted during the week, an increase of more than 43% from the previous seven days.
The Macau Government Tourism Office (MGTO) announced this week that it will resume marketing campaigns on the mainland in a bid to bring visitors back to the casino destination.
The MGTO will begin its “Experience Macau, Unlimited” roadshow this weekend through the Greater Bay Area. The Macau roadshow is scheduled for Hong Kong and nine cities in Guangdong province.