GGRAsia – Macau gaming ‘income’ 2024 maybe US$25bln: CE

Macau gaming ‘income’ 2024 maybe US$25bln: CE

Aug 11, 2023 Newsdesk Latest News, Macau, Top of the deck

The Macau government forecasts the city’s 2024 “income” from casino gaming will be “MOP200 billion” (US$24.8 billion), said on Friday the city’s Chief Executive (CE), Ho Iat Seng. He was speaking (pictured) at an afternoon question-and-answer session at Macau’s Legislative Assembly.

The estimate is in the budget plan that the government is currently preparing for the next fiscal year, he added.

He said that with the assistance of Lei Wai Nong, Macau’s Secretary for Economy and Finance, the authorities calculated the MOP200-billion figure.

Mr Ho stated such a performance would mean “our [fiscal] deficit can be lowered to some MOP10 billion when we count in all the costs of the needed fiscal expenditures”. He was referring to the 2024 budget plan.

The Chief Executive added: “If we… see any further increase [in fiscal income]…we should no longer have a fiscal deficit by 2025.”

His comments came when addressing questions filed by local legislator Zheng Anting, regarding the Macau government’s fiscal planning for social-services spending.

The Macau government had previously said its estimate for 2023 casino gross gaming revenue (GGR) – the base from which the city calculates most of its share of tax from the industry – was MOP130 billion.

The government collected just above MOP26.79 billion in fiscal revenue from taxes on gaming in the first half of this year, which represents 52.7 percent of the total projected revenue of just above MOP50.85 billion from gaming-related taxes for the full-fiscal year 2023, according to official data.

Under Macau’s new, 10-year gaming concession system that came into effect on January 1, the effective tax on casino GGR is 40 percent. Some other duties apply, including annual premiums on gaming tables and slot machines.

During the Friday plenary session, Macau’s Chief Executive reiterated concerns about Macau’s “narrow” tax base, as the gaming industry provides the majority of the city’s current taxation income.

One route that is supposed to help address such problems, is an under-consultation initiative to develop other industries in the city. They include finance; technology; healthcare; the meetings, incentives, conferences and exhibitions (MICE) business; and cultural and sports events, Mr Ho recounted at the Friday session.