• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Gaming slump unlikely to hurt Macau finances: Moody’s

Jul 06, 2015 Newsdesk Latest News, Macau, Top of the deck  


Gaming slump unlikely to hurt Macau finances: Moody’s

Ratings agency Moody’s Investors Service says the ongoing slowdown in gaming revenue in Macau is unlikely to cause any significant harm to the credit profile of the city’s government in the short- to medium-term.

“Revenues from gaming have contributed to large fiscal surpluses built over the last decade, and externally, service exports related to gaming have led to sizeable current account surpluses and foreign reserves,” the rating agency noted in a report issued on July 3. “These buffers will help the [city’s] credit profile withstand lower revenues in the gaming industry,” it added.

In its report, Moody’s however warned that a potential “prolonged shock to the gaming industry” could lead to “government budget deficits, a fall in reserves and a resort to debt”. However, the likelihood that the city would accumulate debt represents “only a long-term risk”, the ratings agency stated.

Gross gaming revenue (GGR) in Macau has dropped for 13 consecutive months measured in year-on-year terms, and the majority of investment analysts that have commented on the issue expects the downturn to continue at least in the near term.

Macau is one of only two Moody’s-rated governments with no debt. However, the ratings agency noted in its latest report that the city’s economy is dependent on a single industry: gaming.

“Such a reliance is a credit constraint, because the industry is facing increasing headwinds from an ongoing anti-corruption campaign in China,” it stated.

The report from Moody’s added: “More than two-thirds of Macau’s tourist arrivals are from the Mainland. China’s campaign has dented revenues in Macau and resulted in a contraction in real gross domestic product. This contraction will likely continue over the near-term, as policymakers adjust to a slowdown in the gaming industry. However, trends may stabilise to a more sustainable pace over the medium-term, if efforts towards economic diversification are successful.”

Moody’s maintained an Aa2 credit rating for the Macau government.

The drop in GGR is already reducing the Macau government’s fiscal surplus. It declined by 54.9 percent year-on-year in the first five months of 2015. The city’s authorities collected a total of MOP38.45 billion (US$4.82 billion) in direct taxes from gaming during the January to May period, down by 35.4 percent year-on-year, according to data disclosed earlier this month by Macau’s Financial Services Bureau.

The gaming industry is the major source of Macau’s fiscal revenues. The government levies an effective tax rate of 39 percent on casino GGR – 35 percent in direct government tax, and the remainder in a number of levies to pay for a range of community good causes.


  • tweet
Related articles
  • GEN Malaysia stable outlook, rebound taking its time: Fitch
    GEN Malaysia stable outlook, rebound...

    Sep 21, 2023  

  • LVS positive outlook, Sands China dividend likely 2025: Fitch
    LVS positive outlook, Sands China...

    Aug 01, 2023  

More news
  • Strong Macau hotel bookings for autumn Golden Week
    Strong Macau hotel bookings for autumn...

    Sep 22, 2023  

  • Big players, tourists due for Golden Week say Macau experts
    Big players, tourists due for Golden...

    Sep 22, 2023  


Latest News

Strong Macau hotel bookings for autumn Golden Week

Strong Macau hotel bookings for autumn Golden Week

Sep 22, 2023  

A number of hotel properties at Macau casino resorts has already sold all or most of the rooms that are available on the open market, for most nights of the upcoming autumn Golden Week holiday...
Read More
Big players, tourists due for Golden Week say Macau experts

Big players, tourists due for Golden Week say Macau experts

Sep 22, 2023  

Philippines must up AML to exit FATF grey list says lawmaker

Philippines must up AML to exit FATF grey list says

Sep 22, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”This year, so far, we will be starting [revamp] work at Grand Hyatt; then, we are looking at Countdown, and afterwards we will look at Altira and others”

Lawrence Ho

Chairman and chief executive of Melco Resorts



Most Popular

  • Golden Week Macau GGR to be 17pct up on rest of Oct: MSGolden Week Macau GGR to be 17pct up on rest of Oct: MS September 21, 2023
  • Grand Hyatt MICE revamp before year end: Melco CEOGrand Hyatt MICE revamp before year end: Melco CEO September 21, 2023
  • Melco to help Macau govt revitalise some Inner Harbour piersMelco to help Macau govt revitalise some Inner Harbour piers September 21, 2023
  • Strong Macau hotel bookings for autumn Golden WeekStrong Macau hotel bookings for autumn Golden Week September 22, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us