One of the most prospective gaming locations in the world, Macau, has just announced its financial results for the first three months of the year showcasing its leadership and dominance in the sector.
According to the government’s report, the jurisdiction has reported a notable increase in tax revenues for Q1 leading to 116.8% year on year compared to the same period last year. The first three months of the year promise to bring even better results as we step into the hottest and most exciting period of the year.
The tax report was shared last week by the Financial Services Bureau showing that the city has collected about MOP21.92 billion (US$2.74 billion) in revenues from gaming taxes in the initial three months of 2024. Compared to the same timeframe last year when about MOP10.11 billion was registered, this increase is something to be hopeful for.
The figures also show that the market has rebounded after struggling with versatile obstacles in the past with the most important one being COVID-19 and limited travel to the location.
Going forward with the results from the recent report, we could see that gaming taxes raked in 84.2% of the local government’s total income in the first quarter of the year, which is at the MOP26.04 billion mark.
As for the results in March this year, the government gathered nearly MOP7.13 billion in profits just from gaming taxes. This figure is slightly lower (4.4%) month-on-month but it still keeps the industry thriving and highly competitive.
As for the Macau’s combined casino gross gaming revenue (GGR) for the Q1 it was at the level MOP57.33 billion, which is 65.5% higher figure from the last year period based on the regulator’s data.
Considering Macau’s 10-year gaming concession system that was active since January 1 last year, the effective GGR tax rate is 40%.
Furthermore, tax sum in the particular period of the year and the Macau’s GGR from casinos are not equivalent for different reasons. This is because of the delay between the moment of GGR registration and the moment when the tax has been documented (paid) by the local government.
Taking a look at the government’s 2024 budget plan, tax revenue for gaming activities is expected to hit almost MOP83.61 billion this year.
The results for 2023 show that Macau yielded MOP65.26 billion from gaming tax, landing at a 28.3% extra in gaming tax revenue allocated for last year.
In the first three months of the year, Macau government fiscal leftover was close to MOP7.78 billion, contrasted to MOP2.30 billion in the first quarter of 2023.
Source:
“1Q Macau gaming tax revenue doubles year-on-year”, ggrasia.com, April 23, 2024.