The Financial Services Bureau of Macau released data on November 16, 2023, detailing the financial impact of the gaming industry on the city’s government operations. According to the report, the Macau government collected MOP51.55 billion (US$6.42 billion) in gaming tax revenues from January through October 2023.
This figure represents a significant increase compared to the same period in 2022, with tax revenue performance in the first ten months of 2023 reaching 215.7% higher than the previous year. The growth was attributed to the lifting of Covid-19 travel restrictions, allowing the gambling properties to reopen on January 8, 2023, after a prolonged period of closure. This recovery has led to a surge in both gross gaming and tax revenues, providing much-needed relief to stakeholders.
However, the monthly revenue figures are subject to fluctuations based on customer arrivals from overseas or mainland China. In October, the Macau tax administration collected slightly over MOP5.78 billion (US$720 million) in gaming tax revenues, representing a 13.1% decline compared to the preceding month.
The gross gaming revenue for the ten months to October 31, 2023, reached MOP148.45 billion (US$18.48 billion), more than three times higher than the same period in 2022. As a result, the tax revenues have already exceeded 101.4% of the planned MOP50.85 billion (US$6.33 billion) for the entire year of 2023.
This increase in tax revenue has been driven by the implementation of a new gaming tax within the scope of a new 10-year gaming concession system, effective from January 1, 2023. The new regulation imposes a 40% tax on gross gaming revenues, resulting in the record MOP51.55 billion (US$6.42 billion) in gaming tax revenues from January through October 2023.
While the recovery of the gaming industry remains a volatile and ongoing process, the substantial increase in tax revenues bodes well for the future of the industry in Macau.