According to Macau Financial Services Bureau, the state’s six casinos have generated $12.97 billion to the Chinese Special Administrative Region in the 2019 financial year that ended in November. The gross gaming revenue (GGR) in Macau by November stood at $33.6 billion, which is a 2.4 percent decline on year to year basis. In 2013, Macau GGR reached the highest mark at $45 billion.
Melco, Galaxy, MGM, Sands, and Wynn pay 39 percent of their GGR to Macau. SJM Holding had enjoyed the gambling monopoly in the region until 2002. The operator pays tax at a rate of 38 percent. According to the Macau Financial Services Bureau, the gaming revenue from the six casinos accounted for 86 percent of all tax collection by enclave.
Reducing Gaming Dependency
According to Casino.org, the International Monetary Fund is encouraging the gaming enclave to boost non-gaming investment by offering incentives. During Macau’s 20th anniversary celebration, the Macau Liaison Director Fu Ziying repeated the same comment saying that the Island of Hengqin has the potential to develop.
Chinese president Xi Jinping is expected to launch a Yaun dominated stock exchange in Macau. What remains to be seen is whether the move will, in any way, help to transform the gaming zone into a financial center.
Conservative Budgeting
Despite some worst time in November and through December due to the US/China trade war and visa restriction policy, the enclave will receive higher revenue than it projected. Macau forecasted to get an income of $12.24 from casinos, but that figure has already been surpassed by $730 million. Macau is always known for being unadventurous when it comes to revenue casino revenue projection.
