As per statistics released by the Macau Financial Services Bureau, the gaming industry of Special Administration Region (SAR) accounted for 86 percent of all tax revenue collected. The total tax paid by enclave’s six casino sums up to $12.97 billion till November this year.
However, the Gross gaming revenue (GGR) numbers this year has declined by 2.4% and stands at $33.6 billion. The second highest taxed revenue is generated from personal and corporate taxes, which totaled $1.26 billion.
Sands, MGM, Wynn, Melco, SJM, and Galaxy, are the 6 casinos of the SAR region. Besides SJM Holdings, all other casinos are taxed at an effective rate of 39 percent. Since SJM is the oldest one and held a monopoly on casino business for 40 years until 2002, it is taxed slightly less at 38 percent.
As per reports, many international organizations like IMF and government authorities have pointed the need for incentivizing these casino operators to investments in non-gaming attractions. The recommendations were made to fast pace the development of the region and opening the conventional spaces.
Notably, the increasing GGR of Macau has slowed down this month. However, the government is expected to collect more revenue than speculated earlier. It has been seen traditionally that the Macau government becomes conservative while projecting casino tax revenue in its annual budget.
On December 20, Macau is celebrating its 20th anniversary as the SAR region was handed back to China on this day by Portugal in 1999. Chinese President Xi Jinping is expected to announce the launch of a yuan-denominated stock exchange.