GGRAsia – Macau govt surplus down 54 pct as gaming revenue dips

Macau govt surplus down 54 pct as gaming revenue dips

May 13, 2015 Newsdesk Latest News, Macau, Top of the deck

The Macau government surplus is down by 54.8 percent year-on-year to MOP20.9 billion (US$2.6 billion) in the four months to April 30, according to data disclosed by the city’s Financial Services Bureau.

Overall, the figures show a 33.6 percent year-on-year decrease in government revenue for the first four months of the year, at MOP37.9 billion. Direct taxes from gaming brought in 83.4 percent of the government’s total revenue in the period.

The government levies a special gaming tax on casino GGR at a rate of 35 percent. It also collects about 4 percent of the gross in indirect taxes for social and promotional purposes, as well as a levy on each gaming machine, live dealer table and VIP room.

The city’s casino gross gaming revenue (GGR) fell year-on-year for the 11th month in succession in April, according to government data.

The latest data show that the government collected a total of MOP31.6 billion in direct taxes from gaming in the first four months of 2015, down by 34.7 percent from a year earlier.

Average monthly GGR in the first four months of 2015 stood at MOP21 billion, according to official data. Accumulated casino revenue for the period stands at MOP83.9 billion, 37.1 percent lower than in the same period in 2014.

Macau’s Secretary for Economy and Finance Lionel Leong Vai Tac said a fortnight ago that the government had to be prepared to cut spending if monthly casino GGR falls below MOP18 billion.