Macau casino operators will not face higher tax rates
Six licensed land-based casino operators in Macau are reportedly not required to pay any more taxes under the provisions of the draft gaming bill, which is currently being considered by legislators.
According to a report in the Asia Gaming Brief, the revelation came from local lawmaker Andrew Chan Chak Mo during a briefing , which was also attended by a number of government officials, including Lei Wai Nong, the former economy and finance minister of the Portuguese residence.
Macau currently operates more than 40 casinos and Win Resorts Limited operated by Galaxy Entertainment Group Limited, SJM Holdings Limited, MGM China Holdings Limited, Melco Resorts and Entertainment Limited, and Las Vegas Sands Corporation's local Win Macau Limited and Sands China Limited, respectively. Sources explained that all of these companies will have to pay a 35% gross gaming revenue tax on all live dealer tables, gaming machines and VIP rooms they operate to increase their validity by approximately 39%.
The Asia Games Brief reports that lawmakers in Macau are currently working on specific provisions for the draft Gaming Bill, which has undergone a series of private deliberations since its first reading in January, with Macau legislators working on specific provisions for the 16/2001 amendment bill, the official name for the draft Gaming Bill. Due to these intimate activities, these new provisions will eventually be submitted to the entire 33-member council for a final vote that is expected to dominate the city's casino market over the next decade.
Chan will reportedly not include any provision in the draft gaming bill that would increase the region's current 1.25% junket commission rate, which could make these companies less competitive. The issue surfaced when the bill proposed abolishing all forms of revenue sharing and requiring junkets to earn fees only from their receipts.
The Asia Gaming Brief reported that other changes proposed by the draft gaming bill would effectively abolish satellite casinos and sub concessions by obliging Macau to do business only outside the premises owned by one of the six game players. This could include a provision that could reportedly result in six game players being fined if they fail to meet previously set minimum game gross revenue targets for slot and table games.
Other provisions in the draft gaming bill would reportedly require casino operators in Macau to keep local government officials up-to-date on any 'major financial decisions' and bring more non-gaming elements to their facilities.