Macau Casinos Running Smoothly; Billion-Worth Taxes Collected

Over the previous years, the Macau gambling industry has been one of the regular contributors to economic growth. Thanks to regular upgrades and a well-thought policy, Macau casinos are still boosting the city’s economy. As reported by Macau Financial Services Bureau, gambling activity has contributed to the collection of $9,49 billion in tax revenues starting from January to August this year. It resulted in 1,5% increase compared to the same timeframe last year.

In-depth Analysis

According to official sources, gross gaming revenue (GGR) in the Macau region has fallen for 1,9% over the last eight months. Despite the previous situation, experts are not observing the correlation between GGR and tax revenues within the same period. Taxes on gambling operations are usually reported later than when the concrete taxable activity occurred. It leads to the shift in data which makes both figures unequally represented.

Current Situation

Gambling activity represents the essence of Macau economic growth. Financial Services Bureau reported that Macau casinos paid about 89,6% of the total tax revenues this year. Giving the present situation, we can notice that the Macau gambling industry remains powerful as the city has already achieved 77,9% of projected revenues for 2019. As a reminder, the city expects to collect about $12,17 billion from gambling operations.

It seems that Macau success has a good impact not only to the city but also to the local gambling sector. The local government predicted that the fiscal surplus of casino activity should be above $2,23 billion. With Macau smooth operation, the government is happy to have a surplus of $4,72 billion until this past August.

Concerns

Meanwhile, Macau’s casino activity can be affected by nearby turbulences including democratic protests in Hong Kong as well as the ongoing trade war between USA and China. Another factor which can influence the gambling sector is betting competition in the region. However, this factor has not affected Macau’s economy seriously.

It is yet to be seen whether the Macau economy will continue to increase until the end of the year. The city has further plans for tourism diversification which will additionally improve the position of the region while attracting new visitors.

Source:

“Macau casinos running strong, billions in taxes collected in 2019”, Erik Gibbs, calvinayre.com, September 16, 2019.