The Macau government has decided to limit the total number of gaming machines in the city to 12,000, and the number of gaming tables to 6,000. The new changes will be in effect from January 1, 2023. Additionally, the minimum annual gambling revenue has also been set at MOP$300,000 per gaming machine and MOP$7 million per gaming table.
Casino Operators Could Pay Higher Taxes
The caps will be implemented under new gaming laws which also include certain provisions that would require casino operators to pay a special premium if they miss the minimum annual revenue target. This is primarily aimed at encouraging concessionaires to make good use of their approved gaming machines and tables.
The new limits and minimum revenue requirements laid out by the government present a huge challenge for operators as casino GGR has been heavily impacted by ongoing pandemic-related restrictions and the recent COVID-19 lockdown implemented back in July.
Concessionaires would need to generate minimum annual gaming revenue of $45.6 billion across their gaming tables and machines as per new requirements announced by the government, but they may not achieve that if the current situation persists.
Macau Gov. Can Adjust Revenue Requirements
Macau’s casino sector would only generate MOP$34.0 billion per year under present conditions. That means operators could be subject to gaming taxes of as high as 54%. The government has found a way to address this though, with the Chief Executive authorized to make adjustments to the minimum revenue targets when necessary.
